Monday 25th February, 2013
Russias political developments make headlines, but its the countrys business development and demographics that are central to its longer-term prosperity. Russia experienced a massive, rapid ownership transformation in the 1990s and is undergoing another one today. Although more gradual than before, the current transformation exposes a profound problem: an emerging leadership gap in business.
The current generation of business owners is not thinking about how best to transfer control of their sizable companies, apart from selling them. And a younger generation is largely unwilling or unable to take over.
This lack of vision has serious consequences. The Family Business Institute notes that family business failures can essentially be traced to one factor: an unfortunate lack of family business succession planning. In Russia, succession is especially important because the country is experiencing its first major generational transfer, which should set the foundation for evolution. A shortage of buyers and leaders is a further blight on the future. …
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