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The institution of family entrepreneurship in modern Russia

The institution of family entrepreneurship in modern Russia

Journal of Economic Regulation, , Vol. 9 (no. 1),

The analysis of condition of family entrepreneurship’s institute in the Russian Federation at the present stage of development is presented in article. The emphasis on the actual absence of the institutional status at family business is placed that complicates process of economic subjects' differentiation in a segment of family entrepreneurship considerably and promotes emergence of need in specification of institutional borders. A large share of family companies in Russia has a small age or at the stage of origin. It is possible to talk only about the employment of family members at the enterprise, but not about the succession of business. It is noted that a considerable part of the domestic family companies is actually small enterprises (microenterprises) today. Family businesses have the following advantages: ease of registration, feasible costs for registering a new company, the ability to work without a bank account, the simplicity of accounting and taxation procedures, independence in selecting costs by entrepreneurs, and the transformation of competition policies related to the nature of family business. The extreme importance of this institute for Russia as the state with the unstable institutional economic environment is defined. The conclusion is drawn that development of family entrepreneurship in a modern difficult economic situation can serve as the guarantor of political stability in the country.

Keywords: institute; family; family entrepreneurship; microenterprise

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