Family business as a brand of the national economy
2024 has been declared the Year of the Family by Russian President Vladimir Putin. Family businesses often serve as the foundation of the economy, making a significant contribution to job creation, tax revenues and the overall gross product. They represent a cultural and economic heritage passed down from generation to generation, which helps preserve traditions and stimulate innovation. Support and development of family businesses contributes to the growth of the country's economic potential, strengthening the social responsibility of business and the formation of a sustainable economic system. The session was devoted to discussing international practical experience in the development of family entrepreneurship as one of the key brands of any national economy for domestic and foreign markets, existing problems and challenges in the development of this sector of the economy, tools and mechanisms of state support. Vice President of the Chamber of Commerce and Industry of the Russian Federation Elena Dybova shared the percentage of family businesses in Russia: "More than half of our companies are first-generation family businesses. Almost 37% of companies are two-generation businesses. Now every tenth company is three generations that run a business together with their founding fathers. 95% of private schools and kindergartens, 85% of companies providing services, 80% of hotels - these are all family businesses. This figure is growing. Almost two thirds of private medical clinics are also family businesses. Every second bakery is also a family business."
Deputy Chairperson of the Federation Council Inna Svyatenko in a video address spoke about the forms of starting a family business: "At the present stage, the state is creating all the conditions for the revival of family business dynasties. One of the forms of starting a business, including a family one, is a social contract. In 2023 alone, 95 thousand social contracts were concluded for opening and developing one's own business. Today, about 74% of small and medium-sized businesses are family businesses in which spouses and relatives work. Moreover, more than half of them have a turnover of up to 500 million rubles. 55% are first-generation family businesses. According to expert estimates, 99% of farm products in our country are produced in family farms."
Deputy Minister of Economy of the United Arab Emirates Abdullah Al Saleh touched upon the importance of state participation in protecting family businesses through the law. According to him, the state should help family businesses. The right legislative system should be created. It is important to create a mechanism that will help family businesses.
Auditor of the Accounts Chamber of the Russian Federation Svetlana Orlova shared statistics on SME registration: “The share of lending to the SME sector in 2023 was 21%, which is 10% more than in 2020. <…> Last year, 1.2 million new companies were registered in Russia, including family ones. Last year, 60 thousand small businesses entered foreign markets. This is 1.2 times more than in 2021. According to these indicators, family businesses occupy a significant share.”
Director and owner of the family logistics company Koumala Transport Logistics Kuma Ali said that a family business is an opportunity to develop the company: "It is very important to expand the territory of a family business. Our company observes the traditions of our country, even when conducting international business."
Director of Engineering and Production Center LLC Olga Aiduganova shared the problems that heirs of a family business face: "There are a number of questions that we are looking for answers to. When children want to inherit a business, the inheritance procedure is not always clear, the large size of bank commissions when transferring to individuals, the size of bank commissions when paying dividends, the conditions for creating inheritance funds, receiving support measures and lending, there are certain risk factors when there are several types of activities."
Founders of Dream LLC Olga and Vladimir Popenov spoke about the importance of mutual understanding in running a family business: "We are together 24 hours a day. This surprised many, but it helped us. We are a good example for our children. Family business is a different culture of doing business. You wake up with your family in the morning. Our granddaughters go to forums with us. In the future, they also want to continue our business." The 15th Anniversary International Economic Forum "Russia - Islamic World: KazanForum 2024" is being held in Kazan from May 14 to 19. This year, its key theme is "Trust and Cooperation". The main goal of the Forum is to strengthen trade, economic, scientific, technical, social and cultural ties between the regions of the Russian Federation and the countries of the Organization of Islamic Cooperation, as well as to promote the development of Islamic financial system institutions in the Russian Federation.