Dr. G.Gradoselskaya
Inclusion or isolation: strategy of
interaction of small business with a
society and govermental structures
By results of the national overall investigations,
carried by Foundation “Public opinion”
2009
BUSINESS, AUTHORITY AND SOCIETY
MUTUAL RELATIONS and EVALUATIONS
Observable of business - practice:(observable
business practices или observation of
business practices )
Authority
?
•Using the state as the tool of economic
pressure - frequently answers for
businessmen inquiries (mutual "orders" of
the businessmen by security agencies,
financial structures and departments)
•Existence
of essentially different career
ambitions(trajectories) of professional
groups: "businessmen" VS "managers"
•The negative attitude of a society to
enterprise activity, denying the values «of
free business activity». As a consequence slow expansion of the layer of
entrepreneurs and their values
2
Corporations
Society
Business
Possible directions of research
 Economic interaction, estimations,
expectations, and installation of authority,
business and society
 Legislative maintenance both guarantees of
activity and relations
 The further distribution and adoption of
enterprise psychology in a society
 Paths of joint development of authority,
business and society
 Ideological and PR-support of economic
processes
PROBLEMS OF RESEARCHES
INTERACTIONS OF A SOCIETY, BUSINESS AND AUTHORITY
NON-HOMOGENEOUS BUSINESS - ENVIRONMENT. The types of business (small,
medium and large) - have different motives for interaction with the state and society.
MANAGERIAL CULTURE HAS A SPECIAL WAY OF DEVELOPING , defferent from
western traditions. The mentality of managers is different from the mentality of
businessmen.
INVESTMENT and SAVINGS BEHAVIOUR of BUSINESS - ENVIRONMENT differs from
western traditions.
MOTIVATIONAL STRUCTURES and BEHAVIORAL PRACTICES, small and mediumsizzed businesses are defined not only by economic, but also social, political and
cultural factors.
THE HIGH MUTUAL MISTRUST in BUSINESS - ENVIRONMENT leads to self-isolation of
businessmen.
RESEARCH GOAL: organization of monitoring the business - environment,
construction of internal Russian ratings
3
INTERACTIONS OF THE ANALYTICAL CENTRE
INFORMATION STRUCTURE
Academic and educational
institutions
Research structures
State University - Higher
School of Economics
Fund «Public Opinion»
(FPO)- Russia
FPO - Ukraine
Governmental
structures
The active Ministries – Ministry
of Emergency etc.
Analytical
Centre at
Government of
Russian
Federation
Institute of sociology, Russian
Academy of Sciences
Informational-analytical centre
on study of political
processes on post-Soviet
space
Branch Academies
4
Representative
departments of the
Analytical Centre in
regions
ROSGOSSTAT (official
statistics)
Business - contacts
Alumni Association of the Presidential Program
Commercial and industrial chamber, regional business associations
Personnel Reserve of Russia
RESEARCHES OF BUSINESS - ENVIRONMENT
BY FUND «PUBLIC OPINION»
Fund «Public Opinion» (www.fom.ru) carries out representative large researches of the
Russians («GEORATINGS »):
2007 – investigation of 34038 Russians, theme - Inclusion of small and medium business in the
public relations, inclusion in professional organizations, mutual relations in business - environment
2008 – investigation of 34041 Russians, theme - Participation of small and medium business in
corruption practices, strategies for creating own business by other groups of population
2009 February – investigation of 34019 Russians, theme - Anticrisis strategy in business environment, protest moods
2009 May –investigation of 34032 Russians, theme - Scenarios for Russia's economy , direction of
activity of the Russian Federation Government
Surveys conducted in 68 regions of Russian Federation (1930 items), about 500 respondents in each region,
regional representative samples, personal interview at the place of residence.
Each wave includes nearly 2000 representatives of medium and small business (owners of business and
managers).
5
In addition to quantitative research focus- groups and in-depth interviews with businessmen and managers are
conducted
KEY CONCEPTS OF RESEARCHES
INTERACTIONS of SOCIETY, BUSINESS and AUTHORITY
Attitude to the legislation and
legal competence
Attitude to «informal practices of
interaction» between business
and authority
Self-organized professional organizations
Inclusion in social practices (participation
in Civil Society etc.)
Influence of crisis in enterprise practices
Estimations of government activity,
revealing of key areas
Protest moods and participation in
protest actions
6
Dynamics of Russian economic
development : optimistic and pessimistic
expectations
Comparing economical and social practices
of professional groups: the businessmen,
managers, experts, working/ not working
REGIONAL RATINGS ON ALL DIRECTIONS: corruption, protest moods, regional
issues, assessment of local authorities
DEVELOPMENT OF SMALL AND
MEDIUM BUSINESS, BUSINESS
CREATION STRATEGY
(Georating 2008-2009)
CONDITIONS OF DEVELOPMENT OF SMALL BUSINESS
Georating 2008
The authorities of region (provinces, republic)
contribute to the development of small
business?
60
50
How do you consider, what are the conditions for small
business development now in Russia - favorable or
adverse?
57,1
60
45,4
36
31,4
Do not promote
30,8 32,3
30
20
55,8
10
50
40
40
Promote
48,6
37,4
34,5
37,2 37,8
0
businessmen
managers
others
30
20
Favorable
Adverse
10
0
businessmen
8
managers
others
Small business development in
Russia is «not thanking, but
contrary to … »
CURRENT AND PERSPECTIVE BUSINESS-EMPLOYMENT
Georating 2008
Opportunity of creation of business
Current employment
Own business
9
Would like to have
own business
Would NOT like to have
own business
Total
Businessmen
3,1
3,1
Managers
0,5
1,5
1,5
3,5
Others
1,9
37,2
54,4
93,4
Total
4,8
39,1
56,1
100,0
1
Businessmen
Formal businessmen
3,1%
2
Informal businessmen
Named itself in another way, but there are businessmen
1,9%
3
Managers - businessmen
Managers, but also have own business, differ from official work
0,5%
4
Managers - potential
businessmen
Managers, who want to open own business
1,5%
5
Managers - stable
Managers, who don’t want to open own business
1,5%
6
Potential businessmen
Citizens, who want to open own business
37,2%
7
Stable
Citizens, who are NOT going to open own business
54,4%
DEMOGRAPHIC CHARACTERISTICS OF GROUPS
Georating 2008
Busine
ssmen
Informal
businessme
n
Managers businessmen
Managers potential
businessmen
Managers stable
Potential
businessm
en
Stable
Gender
Male
68,2
52,4
74,3
57,9
60,8
51,7
41,4
Female
31,8
47,6
25,7
42,1
39,2
48,3
58,6
Age
Up to 30
years
27,5
32,3
27,6
30,9
20,1
48,4
14,4
31-40 years
35,7
26,9
27,6
33,4
20,1
20,5
12,6
41-55 years
33,9
27,0
44,1
31,5
47,2
24,1
31,5
More than
55 years
2,9
13,9
0,7
4,3
12,6
6,9
41,6
Education
10
Incomplete
secondary
6,6
8,5
4,6
0,6
1,7
11,3
23,2
Secondary
72,9
76,6
32,7
36,0
45,6
75,2
64,6
Higher
20,6
14,9
62,7
63,3
52,7
13,5
12,2
SOCIAL ENVIRONMENT OF BUSINESS - GROUPS
Georating 2008
Where you live, in the past 3 or 4 years, the
number of people involved in small business
has become more or less? Or their number
has not changed?
60,0
The quantity has not changed
42,5
5,9
informal businessmen
47,7
43,8
6,7
49
44,4
5,2
managers-businessmen
managers - potential businessmen
38,6
32,2
22,1
managers - stable
18
potential businessmen
18
65,1
12,6
53,6
24,5
27,3
22,8
13,6
10,0
9,8
8,1
a lot of such people
such people not so mutch
not such people
0,0
businessmen
11
42,8
Became less
40,0
20,0
47,5
Became more
55,3
50,0
30,0
businessmen
managers
others
stable 7,8
0%
60,2
37,9
20%
20
51,6
40%
60%
80%
100%
Among your acquaintances, friends, relatives
are there a lot of people, who are involved in
small business?
SOCIAL ENVIRONMENT OF BUSINESS - GROUPS
Georating 2008
How do you consider, what is your financial
situation depends: on you personally or on
external circumstances? (Georating 2009
February)
100%
80%
from myself
28,6
33,6
from external circumstances
47,6
65,7
60%
40%
67,3
62,0
20%
more benefit
46,9
0%
12
manager
specialist, woker
7,4
no influense
28,2
businessman
38,9
42,2
stable
3,5
28,5
61,7
potential businessmen
3,3
33,1
56,7
managers - stable
1,1
25,5
71,7
managers - potential businessmen
5,3
11,8
80,9
managers-businessmen
6,8
19,3
71,8
informal businessmen
1,2
16
78,7
businessmen
don't work
more injury
0%
20%
40%
60%
80%
100%
Small business development brings more
benefit or more harm to people like you?
(Georating 2008)
LAWS AND BUSINESS
Georating 2008
Do you know the Russian laws well or poorly?
well
In everyday life knowledge of laws that I have is
enough
unwell
enough
not enough
37,8
33,0
-63,5
-58,8
businessmen
-62,3
27,2
-69,9
36,3
informal businessmen
-50,3
-43,8
47,7
51,0
managers-businessmen
-57,4
-65,1
The managers businessmen are the most
"advanced" business group. The businessmen, the
informal businessmen and
the managers - potential
businessmen - lag behind in
knowledge of the laws on
20%
40,9
33,0
managers - potential businessmen
38,9
-58,8
-59,0
39,7
managers - stable
-63,1
-72,5
23,1
33,9
potential businessmen
-65,7
-80,8
15,0
29,1
stable
-150,0
13
-100,0
-50,0
0,0
50,0
100,0
14
to go abroad
attend the fitnesscentre
70,0
to fly by planes
80,0
make visit to the
beauty salons
90,0
use foreign
currency
Which of the following you've done over the
past two or three years ?
to pay by a plastic
card
using delivery of
goods to the house
to receive
additional
education
to buy the sports
goods
to take the credit in
bank
to drive the
automobile
to use the Internet
to buy the goods
on credit
to work at the
computer
DAILY PRACTICES OF PROFESSIONAL GROUPS
Georating 2008
businessmen
informal businessmen
managers-businessmen
managers - potential businessmen
managers - stable
potential businessmen
stable
60,0
50,0
40,0
30,0
20,0
10,0
0,0
SEMANTIC STRUCTURE OF
CONCEPTS
Among acquaintances, there
are people, which are engaged
in small business
The off-schedule checks of
business will be carried
out(spent) too frequently
0,21
0,31
all population (Georating 2008)
0,26
There is an own business
or wanted to have the
business
Social
environment
Corruption
Addressed in court concerning
infringement of your rights
0,20
The number of people
engaged in small business,
has increased
0,22
The organizations restrained
your interests
0,30
Authorities
0,23
Gave a bribe to the official
0,81
0,42
The authorities want to
struggle with corruption
0,22
In territory the conditions for the
development of small businesses
are good
0,21
0,22
The Russian laws are
good
-0,20
Will give a bribe to the
official?
0,23
Condemn those who
gives bribes?
0,42
15
business
In Russia the conditions for the
development of small businesses
are good
0,43
0,22
The authorities of territory
contribute to the
development of small
0,40
The official asked an informal
payment
-0,43
0,20
Condemn those who
takes bribes?
The laws
The ordinary person can itself
understand the Russian laws
0,24
Yoy have enough knowledge of
the laws
0,31
0,38
You know the Russian laws well
QUESTIONS FOR MULTIDIMENTIONAL SCALING
Georating 2008
16
Questions about business for MDS
Questions about corruption for MDS
Russian laws in general, are good or bad
Can the average person deal with Russian laws?
Do you know Russian laws well or poorly?
Is in everyday life knowledge of laws that you have
enough
It is necessary to observe any law, even if it is bad, is
unfair
In Russia it is possible to earn big money, not breaking
the laws
Now in Russia there are favorable conditions for
development of small business
In area (territory, republic) there are favorable conditions
for development of small business
 Regional authorities (provinces, republics) contribute to
the development of small business
Among your acquaintances, friends, relatives are there
a lot of people, who are involved in small business?
Where you live, in the past 3 or 4 years, the number of
people involved in small business has become more or
less? Or their number has not changed?
Did it happen in the last years - that any person or
organization infringed upon your interests, violating your
rights?
Have you ever applied to the court about the violation of
your rights ?
Do you consider, the corruption among the officials in
your area (territory, republic) is growing in recent years?
In general, is it possible, in your opinion, to root out
corruption in Russia?
Did you clash personally with the situation that the
official asked an informal payment for his work?
Do you agree, that almost everyone will take a bribe if
he would be given them?
Do you personally disapprove those people who take
bribes?
Do you personally disapprove those people who give
bribes?
Have you ever given a bribe to the official or you have
never given a bribe?
Do you allow the situation that you will give a bribe to
the official?
MDS ON BUSINESS - QUESTIONS
Georating 2008
1
Formality
0,5
0
-4
-3
-2
businessmen
-1
0
-0,5
informal businessmen
managers-businessmen
managers - potential businessmen
-1
managers - stable
potential businessmen
stable
17
-1,5
Enterprise
1
2
3
The managers businessmen use
involvement in formal
relations for realization
of the enterprise goals.
The managers potential businessmen
occupy an intermediate
position between
businessmen and
managers businessmen.
MDS ON CORRUPTION QUESTIONS
Georating 2008
1,5
Execute of informal rules
1
0,5
0
-3
-2
businessmen
informal businessmen
managers-businessmen
managers - potential businessmen
managers - stable
potential businessmen
stable
18
-1
0
1
-0,5
-1
-1,5
Condemnation - tolerance
2
3
Though «followin the
rules», the managers businessmen, are
more tolerant to
corrupt practices.
The managers - stable
and potential
businessmen - are
more critical to the
corrupt practices.
CHARACTERISTICS OF KEY GROUPS
Georating 2008
Businessmen
Men, secondary education, 30-40 years. Most nervous - give bribes even if they are not asked.
Tolerance to existing corruption practices. At the same time there are more optimists, than in other
groups (consider, that is possible to work «under the law» and the corruption can be exterminated).
Informal businessmen
Women, secondary education. Most nervous - give bribes even if they are not asked. From the
standpoint of morality they express extreme estimations: the condemnation of corruption or
complete tolerance. Consider, that there is no other way to earn, but hope on extarmination of
corruption.
Managers - businessmen
Men, higher education, 40-55 years. In corrupt practices they play by the rules – they give bribes as
required. Tolerance to the corrupt practices. Consider, that corruption is not exterminated.
Manager - potential businessmen
Higer education, 30-40 years. They have little experience in corrupt practices. Tolerance to corrupt
practice. Consider that there is no other way to earn, but hope on extermination of corruption. The
group of the optimists is big. They are loyal to the implementation of Russian laws.
Potential businessmen
Secondary education, up to 30 years. They have little experience in corrupt practices.
Condemnation of corrupt practices. They are loyal the implementation of Russian laws.
19
INFLUENCE OF CRISIS
(Georating 2009)
DYNAMICS OF ESTIMATIONS IN CRISIS
Georating 2009 February-August
Do you think, the government of Russia
is working well or poorly?
50,0
40,0
60,0
43,8
43,1
38,2
40,0
30,0
good work
20,0
bad work
10,0
february
may
august
-20,0
39,2
50,0
Government
works well
41,1
40,0
39,8
37,5
-32,3
-32,0
47,3
43,4
43,3
45,1
43,8
43,3
42,5
42,9
february
august
-40,0
-55,0
-56,3
-58,1
-80,0
All
depends
80,0
on me70,0
60,0
67,3
62,0
businessman
manager
specialist, woker
don't work
70,1
59,4
65,2
54,8
businessman
manager
40,0
46,9
specialist, woker
don't work
30,0
30,0
may
august
28,2
46,4
27,7
45,0
26,2
20,0
february
21
may
50,0
36,4
february
from external circumstances
0,0
-60,0
-35,9
37,5
from myself
-30,0
-40,0
38,9
20,0
-20,0
0,0
-10,0
What is more your financial situation
depends on?
may
august
LOSS OF WORK AND CONFIDENCE OF THE FUTURE
Georating 2009 February
I'm already have announced about dismissal
probability of dismissal
no probability of dismissal
100%
0,8
18,5
1,3
33,9
80%
What the probability that you will be
fired on reduction of staff in the coming
two - three months?
1,3
42,8
60%
40%
In case of dismissal will you personally
be able to find a job in your field within
two –three months?
74,0
58,6
20%
45,1
0%
businessman
manager
not administrative post
Possible to find work
Impossible to find work
I not threatened with dismissal
70,0
The businessmen – most confident part of
the population. 81 % of businessmen
beleive, that they will not face dismissal.
The managers –are more confident, that in
case of job loss they will find it quickly.
The employees, who are not in managerial
positions – are insecured of future. 46 % of
the workers consider, that they will not find
job.
57,4
60,0
50,0
48,9
48,5
35,3
40,0
30,8
30,0
20,0
15,7
11,8
10,6
10,0
0,0
businessman
22
40,9
manager
not administrative
post
POTENTIAL ZONES OF DISCONTENT
Georating 2009 February
100%
The negative developments at
work prepare ground for
social discontent
80%
3,3
21,9
60%
no negative events at work
100%
negative events at work is happen
80%
60%
74,8
63,7
0%
52,5
49,5
67,6
negative events at work is
happen
no negative events at work
Do You notice the people around who are are
not satisfied with the authorities, protest
moods?
40%
20%
20%
32,1
protest of public feeling is weaken
no protest of public feeling
protest of public feeling is strangening
40%
Managers and employees feel the
greatest pressure at work
4,3
46,3
48,4
manager
not administrative
post
27,1
0%
businessman
23
In the last month were there negative events
connected to work?
PROTEST MOODS
Georating 2009 - February
80,0
100%
9,2
8,4
80%
42,3
45,8
60%
48,5
61,5
55,6
60,0
50,0
40,0
30,0
20,0
10,0
8,9
35,9
hard to answer
I don't meet
I meet
40%
69,0
70,0
The dismissed people
remain along with their
problems. So, in a crisis
situation the probability of
participation in protest
actions raises in 1,5 times.
I admit participation in the protest actions
I exclude participation in the protest actions
hard to answer
45,8
55,2
manager
noт-administrative
post
32,2
27,7
21,6
9,4
12,2
10,8
0,0
no probability of
dismissal
dismissal is probably
I'm already have
announced about
dismissal
Do you admit the possibility to take part in any
protest actions?
20%
0%
businessman
24
Do you face today such problems, situations
,which push you to take part in the protest
actions?
TYPOLOGY
Georating 2009 February
PARTICIPATION in PROTEST ACTIVITIES
Aggressive
Admit participation in the actions of the protest, consider
that it can bring result
13,6%
Self-elimination
The actions of the protest can bring result, but they will
not participate in them
16,4%
Guided
Admit the participation in the actions of the protest,
though they believe that it does not bring result
Stable
The actions of the protest are useless, and they will not
participate in them
7,5%
40,1%
INCLUDING IN SOCIAL ENVIRONMENT
25
Friendly
The majority of the people can be trusted, environment
is rallied
6,3%
Naive
The majority of the people can be trusted, environment
is separated
10,7%
Clan
The environment is rallied, it is necessary to be cautious
Isolated
The environment is separated, it is necessary to be
cautious
6,4%
63,6%
ESTIMATIONS OF DEVELOPMENT OF ECONOMY
Georating 2009 February
100%
In your opinion, at this
moment the Russian
economy experiences
growth, recession or
crisis?
hard to
answer; 9,2
80%
60%
Do you think, in one
year the Russian
economy will
experience growth,
recession or crisis?
hard to
answer; 28,5
crisis ; 63,2
crisis ; 40,8
40%
20%
0%
recession ;
19,5
growth ; 16,6
growth ; 8,1
now
Typology on
involving in
social
invironment
recession ;
14,1
after year
Friendly
Naive
Clan
Isolated
Growth
20,2
17,7
29,4
15,6
Recession
14,3
15,7
13,7
14,5
Crisis
39,3
40,9
31,3
43,2
Economy in one year
Aggressive
Self-elimination
Growth
17,7
22,4
13,3
17,3
Recession
14,7
15,2
15,4
14,8
Crisis
45,5
36,2
48,8
40,2
Typology on
participation in
actions of the
protest
Economy in one year
26
Guided
Stable
CONSEQUENCES of CRISIS AT WORK
Georating 2009 February
FACTOR ANALYSIS: consequences of crisis in the last 2-3 months
Optimization of loading
of the employees
Delays of payments of wages
Reduction of wages
•Dismissals on reduction of
staff
•Transfer of the employees to
part-time
•Sending of the workers in the
enforced leave
The external factors
Reduction of
volumes
Cancellation of
the premiums
•Problems caused by difficulties
•Decrease(reducti •Cancellation of
with suppliers of our enterprise
•Difficulties with payment of
production to the suppliers of our
enterprise
•Difficulties with payment of loans
taken by our enterprise
•Difficulties in obtaining credit for
our enterprise
on) of number of
the orders,
clients, sales etc.
•The profit has
decreased
•Began to work at
a loss
awards, bonuses
•Transition to
complete or partial
payment of the salary
"in envelope"
•Abolished or reduced
social payments to the
workers (food,
medical treatment)
FACTOR ANALYSIS: consequences of crisis in the last month
Reduction of
bonuses
•Have not paid the awards,
bonuses etc.
Have reduced the salary
•Have cancelled or have
reduced social payments to
27 the workers (by a food,
medical treatment etc.)
Reduction of duty
Deception
Dismissals
•Have transferred to part •Have delayed wages and other
•Have dismissed
time
•Have sent in the
enforced leave
from an additional
place of work
•Have dismissed
from the basic
place of work
earned money
•Have refused to pay for the work,
executed by me
•Have terminated the contract,
concluded earlier with me,
STRATEGY OF CRISIS BEHAVIOUR*
Georating 2009 February
Optimization of
work
Economy
Expectation of the
help
Migration
Resource
•I shall buy
•I shall replace
•I shall ask for the help
•I shall move there
•I shall sell something
less products,
things
•I shall buy
cheaper
products,
thing
work
•I shall search for
additional earnings
•I shall master a
new profession,
speciality
from the relatives,
friends, acquaintances
I shall ask for help from
charitable organizations,
communities etc.
•I will beg
where it is cheaper
to live
•I shall move there,
where there are more
opportunities to earn
from personal things
•change an apartment
for a smaller apartment
•rent the room,
apartment, holliday
cottage(datcha)
ANTICRISIS STRATEGY FOR DIFFERENT PROFESSIONAL GROUPS
Economy
Optimization of
work
BUSINESSMEN
MANAGERS
EMPLOYEES
+
NOT WORKING
+
28
Expectation of
the help
Migration
Resource
-
-
+
+
+
-
+
+
* By results of factorial analysis. Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser
Normalizatio
Conclusion
FEATURES OF DEVELOPMENT OF SMALL BUSINESS
Researches in Russia
1
Development of small business in Russia - a phenomenon is equally economic and social,
so the adoption of economic laws in this area has a social impact.
2
The businessmen are the most advanced, independent group, the conductor of
innovations in surrounding groups of the population.
3
30
Currently, the business environment is redefining its role in society : the inclusion in public
practices (civil society, the charity etc.) raises the sense of social security of business,
enhances self-esteem of this social group , and a sense of relevance.
.
4
As the businessmen are a new social phenomenon for to our country, wide groups of the
population do not understand the value of entrepreneurship and business people
themselves. Actually, the businessmen are in a state of isolation .
5
Among businessmen there is no clear understanding of what to do in a situation of
economic crisis, there is no clear scenarios of behavior.. The role of the state as the centre
of coordination raises.
DIRECTIONS OF THE FURTHER RESEARCHES
Analytical Centre at Government of Russian Federation
Development of new
methodological tools
+
Development of the
international cooperation
+
Development of personal
interactions between the
researchers
Development of regional rankings (on the level
of corruption, protest moods, etc.)
Comparative cross-national studies of the
regional management (including - small and
medium business)
Global microeconomics : processes of labor
migration between the countries etc.
The discourse-analysis of the international
political space: symmetry of the mutual
perception of the countries
Distribution of cultural, social and political concepts
between the countries
The international network of the experts: for the
rapid analysis of global processes
31
Thanks for attention!