Yulia MurzinaPublished in:
Leadership and Management
– Volume 2, Number 2 (April-June, 2015)

JEL classification: L21, L26, M14

Keywords: criteria for choice of successors, factors for success of the business transfer process, family business, motivation of succession, process of business transfer, psychological portrait of a successor


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Abstract:

The article proves relevance of the subject of succession in business. Typical issues of hereditary transfer of the business are reviewed. The analysis of some positive and negative socioeconomic trends for the prospect of the family business development is given. Directions in foreign researches on the subject of succession in business are represented.

Highlights:

► business inheritance problem is the most relevant of all the variety of topics
► scientific research of the subject of the succession in business has only begun to develop
► speaking about the future of the family entrepreneurship, it’s important to understand what social and economic tendencies accompany the process of the development of this entrepreneurship form
► negative social tendency consists in the fact that the institution of marriage suffers a considerable crisis in Russia
► disruption of the family institution has an adverse effect on the possibilities of the family entrepreneurship revival in Russia
► “weak” family connections lead to the rejection of the succession and, eventually, to setting up of own business
► while western people clearly gravitate towards individualism and eastern towards collectivism, Russian culture can be considered somewhat “in-the-middle” (perhaps, a little closer to the East rather than to the West)
► according to the pool numbers, most entrepreneurs (more than 60%) would like their children to become their successors in business
► there isn’t enough theoretical and empirical works on the subject of business inheritance
► regardless of the successors’ skills, if the owners are not ready to entrust them with the decision-making process, the young people are deemed not ready to take over the family business

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