Russian family business prepared for a recession – RBC

The Russian family companies do not expect growth in the current year, it follows from the results of a survey conducted by EY, together with the Center for Entrepreneurship Kennesaw State University Cox Family Enterprise Center. The sample included 25 largest companies from 21 countries, which are controlled by one person or family through the ownership and management.

A third of respondents believe that there will a reduction markets, another third believe that market conditions will not change. Equally skeptical representatives of family businesses in Brazil and Italy, they are also faced with a set of economic problems.

If we forget about the crisis, the Russian family business feels good. “Despite the relative youth of Russian family companies, the results of the study show that in general they are developing in line with the global trend in the family business” – says Anton Ionov, a partner at EY, head of group services for private clients in the CIS.

On the one hand, the Russian company has fewer branches (1.4 to 5 on the average in the world), and a smaller number of regions (2.8 to 15 countries). On the other – they were among the record holders in terms of return on equity (ROE): it was 20%. A similar result showed only the countries of the Cooperation Council for the Arab States of the Gulf. Close to the figures for China – 19.8%. Thus, for example, the rate for the United States – 13.2%, Japan – 10,8%.

The Russian family business satisfied with the results of the activities of its Board of Directors: 84% of respondents considered them “good” and “excellent “. The remaining 16% did not give a positive or negative characteristics, so it turns out that the negative responses to the question of the board of directors did not give one. The global average proportion of family businesses that responded positively was 87%. The difference is that the Russians are less willing to trust the advice of determining the order of succession of business owners prefer to do it themselves (36.4%) or delegate the task to the Executive Director (also 36,4%).

An earlier study of family business in Russia performed consultancy PwC. From the results for 2012 and 2014 shows that the share of companies, which recorded sales growth in the 12 months preceding the survey, over two years was reduced from 92 to 72%. 19% – from 95 to 76% – reduced the proportion of those who planned steady growth over 5 years, and believed that it could provide.

Representatives of family and private businesses were also asked which factors in their opinion, are the most serious challenges to the five-year horizon. In 2012, in the lead overall economic environment, to attract the necessary personnel and price competition. In the summer of 2014 the top 3 changed somewhat: in the third place of the competition out the need to improve professionalism. The survey EY sector human capital named one of the three key areas for investment, along with information systems and production facilities.