Small Business Dynasties in Modern Russia: Strategies and Prospects for Reproduction
Research Article
Acknowledgments
The work was supported by the Russian Science Foundation. Project No. 19-18-00320 «Constructive and destructive potential of Professional Dynasties in Russian Society»
How to Cite
Klimenko L.V., Posukhova O.Y. 2021. Small Business Dynasties in Modern Russia: Strategies and Prospects for Reproduction — Sociologicheskaja nauka i social’naja praktika. Vol. 9. No. 1. P. 43-60. DOI: https://doi.org/10.19181/snsp.2021.9.1.7871
Abstract
Reproduction of generational succession in small and medium-sized businesses is a basic element of the national economies of many Western countries. Russia’s socio-economic development is also guided by a significant increase in the SME sector. However, the relatively short period of development of market relations in our country, economic crises and transitivity of the status of family business (both in the legal field and in public opinion), instability of organizational and communicative practices of inheritance of capital are factors that prevent the formation of entrepreneurial dynasties in Russia. An empirical study of strategies for reproduction of entrepreneurial dynasties shows that small businesses in our country are less focused on educational strategies, through obtaining professional education. Professional continuity is based primarily on work experience (usually from grassroots positions) and mentoring from the older generation. However, the educational strategies are becoming more relevant at the level of prospects for including the third generation of heirs in the family business.
Strategies of social (accumulation of mobilizable social relations) and symbolic (accumulation and multiplication of recognition capital) investment are common in dynastic reproduction. Family traditions and business experience are often associated with the ability to transfer social capital at a lower cost, the advantage of broadcasting and adopting informal business experience and business connections. Intergenerational continuity is ensured by the formation and translation of the family culture of the business dynasty with special value-identification meanings, including the special professional ethos of family business representatives.
Keywords:
business dynasties, reproduction strategies, social and symbolic investment, continuity
References
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2. Berto D., Berto-V’yam I. (1993). Semeinoe vladenie i sem’ya: transmissii i sotsial’naya mobil’nost’, proslezhivaemye na pyati pokoleniyakh (okonchanie stat’i). [Family ownership and family: transmissions and social mobility, traced on five generations]. Sotsiologicheskie issledovaniya. № 2. P. 58–67. (In Russ.)
3. Burd’e P. Sociologie de l’espace social. (2007). [Russ. ed.: Sotsiologiya sotsial’nogo prostranstva]. Еd. by N. A. Shmatko. M. : Institut eksperimental’noi sotsiologii ; SPb. : Aleteiya publ. 288 p. (In Russ.)
4. Burd’e P. Formy kapitala. (2002). [Forms of capital]. Ed. by V. V. Radaev. Ekonomicheskaya sotsiologiya. T. 3. № 5. P. 60–74. (In Russ.)
5. Volkov D. A. (2016). Osobennosti organizatsii i upravleniya semeinym predprinimatel’stvom v usloviyakh Rossii. [Features of the organization and management of family entrepreneurship in Russia]. M. : RANKhIGS pri Prezidente RF publ. 314 p. (In Russ.)
6. Gergert D. V., Ponomareva T. V. (2018). Semeinyi biznes kak ob”ekt mezhdistsiplinarnogo issledovaniya: obzor metodologicheskikh podkhodov. [Family business as an object of interdisciplinary research: a review of methodological approaches]. Vestnik Permskogo universiteta. Seriya: Ekonomika. T. 13. № 1. P. 90–105. (In Russ.)
7. Zelenkov S., Efremov K. (2007). Professional’naya orientatsiya i trudovaya zanyatost’ molodezhi. [Professional orientation and labor employment of youth]. Narodnoe obrazovanie. № 6 (1369). P. 239–242. (In Russ.)
8. Issledovanie vladel’tsev kapitalov v Rossii 2015. Tsentr upravleniya blagosostoyaniem i filantropii Skolkovo. [Study of capital owners in Russia 2015. Skolkovo Center for Wealth Management and Philanthropy]. (2016). Skolkovo : [sait]. URL: https://wtc.skolkovo.ru/media/documents/SKOLKOVO_WTC-WPS_2015_Report(RUS).pdf (data obrashcheniya: 27.08.2020). (In Russ.)
9. Klimenko L. V., Posukhova O. Yu. (2020). Business Dynasties: Their Specifics and the Potential for Development. [Professional’nye dinastii v biznese: spetsifika i potentsial razvitiya]. Mir Rossii. Sotsiologiya. Etnologiya. T. 29. № 1. P. 80–102. DOI: 10.17323/1811-038X-2020-29-1-80-102. (In Russ.)
10. Mart’yanova N. A., Rubtsova M. V. (2015). Manageability of profession as a social institution: from deprofessionalization to the reconstruction of professions. [Upravlyaemost’ professii kak sotsial’nogo instituta: ot deprofessionalizatsii k rekonstruktsii professii]. Studia Humanitatis. Setevoe izdanie. № 2. URL: http://st-hum.ru/sites/st-hum.ru/files/pdf/martianova_rubtcova.pdf (data obrashcheniya: 27.08.2020). (In Russ.)
11. Mostovaya I. V. (1997). Sotsial’noe rassloenie: simvolicheskii mir metaigry. [Social stratification: the symbolic world of the meta-game]. M. : Mekhanik publ. 207 p. (In Russ.)
12. Mostovaya I. V., Klimenko L. V., Posukhova O. Yu. (2019). Methodological aspects of professional dynasties research in Russian society. [Metodologicheskie aspekty issledovaniya professional’nykh dinastii v rossiiskom obshchestve]. Gumanitarii Yuga Rossii. T. 8. № 6. P. 70–82. DOI: 10.23683/2227-8656.2019.6.3. (In Russ.)
13. Murzina Yu. S., Poznyakov V. P. (2017). Founders of business dynasties in Russia recognize the significant impact of family relationships on business. [Osnovateli biznes-dinastii v Rossii priznayut znachimoe vliyanie semeinykh otnoshenii na biznes]. Rossiiskoe predprinimatel’stvo. T. 18. № 7. P. 1215–1232. DOI: 10.18334/rp.18.7.37748. (In Russ.)
14. Murzina Yu. S., Tonysheva L. L. (2015). Motivy sobstvennikov v peredache biznesa preemnikam. [The motives of the owners in the transfer of the business to the successors]. Ekonomika i predprinimatel’stvo. № 10–1 (63). P. 1147–1155. (In Russ.)
15. Smirnov V. V. (2008). Razvitie semeinogo biznesa kak faktor ozdorovleniya ekonomiki. Rossii v usloviyakh krizisa. [Development of family business as a factor of economic recovery Russia in a crisis]. Vladimir : VGU publ. 48 p. (In Russ.)
16. Tkach O. A. Zavodskaya dinastiya kak sotsial’no-kul’turnyi fenomen: sovetskii i postsovetskii periody. (2008). [Factory Dynasty as a Socio-Cultural Phenomenon: Soviet and Post-Soviet Periods]. SPb. : Sotsiologicheskii institut RAN publ. 23 p. (In Russ.)
17. Forost E. Sektor malogo i srednego predprinimatel’stva: Rossiya i mir. [Small and medium-sized business sector: Russia and the world]. Institut ekonomiki rosta im. Stolypina P. A. : [sait]. 27.07.2018. URL: http://stolypin.institute/novosti/sektor-malogo-i-srednego-predprinimatelstva-rossiya-i-mir/ (data obrashcheniya: 27.08.2020). (In Russ.)
18. Arum R., Muller W. (2004). The Reemergence of Self-Employment: A Comparative Study of Self-Employment Dynamics and Social Inequality. Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. University of Illinois at Urbana-Champaign’s. URL: https:// ssrn.com/abstract=1496165 (date of access: 27.08.2020).
19. Chrisman J. J., Chua J. H., Sharma P. (2005). Trends and Directions in the Development of a Strategic Management Theory of the Theory of the Family Firm. Entrepreneurship Theory and Practice. Vol. 29. № 5. P. 555–575.
20. De Massis A., Sharma P., Chua J. H., Chrisman J. J. (2012). Family Business Studies: An Annotated Bibliography. Cheltenham : Edward Elgar. 368 p.
21. Dunn T., Holtz-Eakin D. (2000). Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links. Journal of Labor Economics. № 18 (2). P 282–305.
22. Global Family Business Survey. PwC : [site]. (2018). URL: https://www.pwc.com/gx/en/family-business-services/assets/pwc-global-family-business-survey-2018.pdf (date of access: 27.08.2020).
23. Klein S. B. (2000). Family Business in Germany: Significance and Structure. Family Business Review. № 13 (3). Р. 157–181.
24. Lentz B. F., Laband D. N. (1990). Entrepreneurial success and occupational inheritance among proprietors. Canadian Journal of Economics. Vol. 23. № 3. Р. 563–579.
25. Lindquist M. J., Sol J., Van Praag M. (2015). Why do entrepreneurial parents have entrepreneurial children? Journal of Labor Economics. Vol. 33. № 2. Р. 269–296.
26. Mannarino L., Pupo V., Ricotta F. (2001). Family Involvement In Management And Firm Performance: Evidence From Italy. Working Papers n. 03–2011. Università della Calabria : [site]. URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP03_2011.pdf (date of access: 27.08.2020).
27. Rosenthal G. (2006). The Narrated Life Story: On the Interrelation Between Experience, Memory and Narration. Narrative, Memory and Knowledge: Representations, Aesthetics and Contexts. K. Milnes, C. Horrocks, N. Kelly, B. Robert, D. Robinson (Eds.). Huddersfield : University of Huddersfield Press. P. 1–16.
28. Schulze W. S., Gedajlovic E. R. (2010). Whither Family Business? Journal of Management Studies. № 47 (2). P. 191–204.
29. Sorensen J. B. (2007). Closure and Exposure: Mechanisms in the Intergenerational Transmission of Self-employment. Research in the Sociology of Organizations. Vol. 25. P. 83–124.
30. The 2019 EY and University of St. Gallen Global Family Business Index. Center for Family Business at the University of St.Gallen. EY : [site]. (2019). URL: https://www.ey.com/en_gl/growth/ how-the-world-s-largest-family-businesses-are-responding-to-the-transformative-age (date of access: 27.08.2020).
31. The CS Family 1000 in 2018. Аnalytical reports of the Research Institute Credit Suisse. (2018). URL: https://www.credit-suisse.com/about-us/en/reports-research/studies-publications.html (date of access: 27.08.2020).
32. Thomas W., Znaniecki F. (1996). The Polish Peasant in Europe and America. A Classic Work in Immigration History. Urbana : University of Illinois Press.
33. Zahra S. A., Hayton J. C., Salvato C. (2004). Entrepreneurship in Family vs. Non-Family Firms: A Resource-based Analysis of the Effect of Organizational Culture. Entrepreneurship Theory & Practice. Vol. 28. № 4. P. 363–381.
Article
Received: 01.09.2020
Accepted: 28.03.2021
Citation Formats
Other cite formats:
Harvard
Klimenko, L. V. and Posukhova, O. Y. (2021) ’Small Business Dynasties in Modern Russia: Strategies and Prospects for Reproduction’, Sociologicheskaja nauka i social’naja praktika, 9(1), pp. 43-60. doi: https://doi.org/10.19181/snsp.2021.9.1.7871.
Section
SOCIOLOGY OF PROFESSIONS
Publisher: Federal Center of Theoretical and Applied Sociology of the Russian Academy of Sciences (FCTAS RAS)