Small Business Dynasties in Modern Russia: Strategies and Prospects for Reproduction

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