Prospects for the family business’ IPO in the Russian Federation

Abstract

Purpose: of the article is to identify the specific characteristics of family entrepreneurship that determine financing specifics in the capital markets and the prospects for their public offering (IPO) on the stock exchange. Methods: the study is based on the analysis of small and medium-sized enterprises into the capital market issues, content analysis of scientific, scientific-practical, expert as well as regulatory documents and methodological recommendations of the stock exchanges on the issue of companies entering IPO. The methods of scientific generalization and classification, economic, expert and statistical analysis are used. Results: the comprehensive diagnosis of the specific features of family-owned companies that affect the ability to attract financing, primarily in the capital market, has been carried out. The value characteristics of family entrepreneurship are considered in the context of the impact on the local and regional economy. Recommendations are given on measures to support family business companies in order to encourage them to attract financing. An assessment of the current situation with the use of crowdfunding and exchange-traded financing tools by family enterprises has been carried out. The factors contributing to the IPO of family companies have been identified: the long life span of the company, the value orientations of the family business, a long-term development strategy based on trust; social aspects of the activity, adherence to the principles of ESG, the development of local brands. The factors preventing the entry of family companies into the IPO have been identified: the lack of transparency of the corporate structure; difficulty in registering the ownership rights of business owners; unwillingness to let part of the company's property out of control. Conclusions and Relevance: the conducted analysis indicates the prospects of using the IPO tool to attract investment capital by family business companies. Family-owned companies are expected to appear on the Russian stock market. A crowdfunding tool for family business companies operating in the B2C segment deserves special attention.

Keywords

• family business
• ipo
• crowdfunding
• financial instruments
• cultural code of entrepreneurship
• socially responsible entrepreneurship
• regional brand