Contemporary issues of rural family entrepreneurship: Case of Russian indigenous family businesses.

Abstract

Purpose: The study focuses on the research of rural family businesses of indigenous people in Russia. The social problems that these people face are related to ensuring the stability of the rural family business, which also impacts the stability of rural development. We attempt to identify the main pain points in the development of the rural family business, which require deeper understanding and examination.

Design/methodology/approach: We employed quantitative methodology and use an applied survey data analysis as the pilot study that was conducted in April 2019. The participants include 30 indigenous people in family businesses based in the Ural region of Russia.

Findings: We found that family business presents the social foundation that bridges the gap between social and economic institutes. We also identified common and most important economic and social factors that shape rural family business including, economic stability of families and transfer of family values to the next generations.

Research/practical implications: Our study contributes to the understanding of main factors influencing rural family business. We argue that family binds create unique managerial approach in family firms and close attention must be paid to the research of this specific approach.

Originality/value: We challenge the existing research on the factors that influence rural family business generation and development, and identify contextual factors that influence rural family business in Russia. We distinguish between rural family businesses from any other entrepreneurial firms, which is the cornerstone for more exhaustive research of rural family business.