Each Fifth SMB Self-Employed Wishes to Get Back to Regular Employment
Introducing a portrait of a Russian entrepreneur
Within RSBI Wave XX — a quarterly research of SMB attitudes, held jointly by Promsvyazbank, OPORA RUSSIA and MAGRAM Market Research, we present a profile of Russia’s businessman.
Additionally to the standard questions of each Wave in Q II we studied the businessman profiles: what was their previous places of employment, what means were used to open their first businesses, how long is their business day and etc.
According to the research, for 80% of the respondents their current business is their first SMB experience.
20% of the respondents have already owned or co-owned some other companies. It is interesting, that split by industries (trade, manufacture, services) those figures are almost the same: trade - 18%, manufacture - 22%, services - 22%.
Only 5% of the respondents organized their businesses immediately after university or military service. At the same time the highest share of such «graduates» is registered in trade (10%), and the lowest – in services (2%). The share in manufacture makes 6%.
28% of the respondents left positions of CEOs or top managers of other companies to start their own businesses.
More than a half of businessmen started their first business based on their own savings (58%), borrowed from their relatives and friends (20%) or jointly with their partner’s money (15%).
14% of the respondents applied for bank loans, as for federal or regional subsidies and grants — only 1% of the respondents used them.
Family and business
Only 42% of the respondents mentioned that their family members take part in business to some extent, at the same time in the majority of situations their family members either participate unofficially (17%) or are employed for the lowest positions (10%). Only 9% of the respondents mentioned that their family members became their business co-owners. 58% of the respondents mentioned that their families do not participate in their businesses.
At the same time 42% of the respondents would not like their children to take after their business. The highest share of such mentions refers to trade companies (47%), and the lowest (29%) — to manufacturing companies.
39% of the respondents wish their children to take after their business, at the same time 25% are training their children or plan to start training them in doing business. However only 14% of the respondents mentioned that their children agree with their parents’ plans.
As for the profitability of own companies, the survey did not include questions about specific amounts of income. However answering the question «Would you change your current business for a regular employment, if your income were the same as today?», 57% of the respondents answered negatively. The biggest share of those who would not like to give up their own business is among the owners of manufacturing companies (61%).
21% of business owners would like to get back to their regular employment. The highest share is with trade companies’ owners (25%).
The average business day of a SMB self-employed makes 10.5 hours.
87% of businessmen start their day at the same time as their employees — from 8 a.m. to 10 a.m.
But only 43% of business owners finish their business day the same as their employees (before 19:00). Another 21% do not work after 20:00. Only 7% of the respondents work after 22:00.
The research covered owners and top managers of 2,300 small and medium companies in 23 regions of the Russian Federation, which makes 63% of SMB in Russia. 529 of business owners answered the question from block «Businessman Profile».