A new report released today by UBS and Campden Research reveals exclusive, in-depth insights into the views of Russia's leading entrepreneurs about the critical issues that they, their businesses and their families will face in the next five years.
Russia's wealth creators: Facing the challenges of succession and wealth management, features the views and concerns of 25 entrepreneurs who all live in Russia or have their core business there. Eighty percent of respondents had a family wealth in excess of $500 million.
One of the key findings of the research was that Russian entrepreneurs are in jeopardy of seeing their fortunes eroded by the next generation unless they give serious though to succession and wealth transfer. This deep, historical aversion to legacy building was just one of the many exclusive discoveries revealed in the report.
"As the first study of its kind, initially we faced some scepticism from the entrepreneurs we approached," explained Marco Naumann, co-author of the report. "However, once we had explained the concept, I was pleasantly surprised by how openly the respondents discussed their business and personal wealth."
The survey also revealed that less than half of respondents thought the Russian business environment encouraged innovation and entrepreneurship; despite this, nearly two thirds said they would involve family members in their businesses in some capacity moving forward.
The wealth expectations of Russia's entrepreneurs are more complex given that many are still busy building their wealth, which explains why there is a limited understanding of international financial markets and why over 70% were only vaguely familiar with or had never heard of the term family office.
"I hope this report will trigger debate amongst other Russian entrepreneurs about the complex issues inherent in transferring their wealth to the next generation and successfully managing wealth for the long term," commented Dominic Samuelson co-author of the report and managing director of Campden Wealth.
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