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!