The potential foundation of the economy - Tatarstan wants to adopt a law on family businesses

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      In Tatarstan, they want to adopt a law on family enterprises

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      In Tatarstan, they want to pass a law on family enterprises

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      Potential foundation of the economy

      In Tatarstan, they want to adopt a law on family enterprises (photo: tatarstan.ru)

      Initially, the republic plans to create a register of such companies to understand their exact number, and in the future, family businesses may be eligible for special support.

      Relevant amendments to the republic's law "On the Development of Small and Medium Enterprises of RT" have been submitted to the State Council of Tatarstan. They propose introducing the concept of "family enterprises." The explanatory note states that family business is a unique phenomenon that can successfully address important socio-economic tasks, as representatives of such businesses are capable not only of ensuring effective self-employment but also of creating new jobs. The authors of the initiative indicate that family enterprises may be more sustainable due to a particular interest in preserving and succeeding in their business. Moreover, deputies remind that many well-known companies operate in many countries, forming the backbone of their economies, including L’Oreal, Samsung, Hyundai Motor, LG Group, BMW, Siemens, Ford Motors, and others.

      Tatarstan parliamentarians noted that family enterprises operate across all sectors of the economy. However, family businesses still lack official legal status, which prevents proper development. The authors believe that, through the concept of "family enterprise," conditions will be created for monitoring this SME sector. Moreover, similar laws have already been adopted in twenty Russian regions.

      The bill outlines criteria that, when met, will allow an enterprise to obtain the status of a family business and be included in a special register. As one of the co-authors of the bill, deputy Marat Galiyev, pointed out, the introduction of the concept is a fundamental step, as it could later prompt authorities to specific forms of support, not necessarily financial. The deputy is confident that "it's not always about money." Galiyev also mentioned that the Tatarstan Chamber of Commerce and Industry is one of the initiators of the bill.

      Taliya Minullina, head of the Agency for Investment Development of the republic, believes that the issue of special support for family enterprises should be approached carefully and with some caution, as such measures could lead to negative consequences, because there is a risk that someone might exploit the situation and "start bringing relatives to themselves to become family entrepreneurs."

      Tatarstan's Business Ombudsman, Farid Abdulganiyev, stated that we should first observe this category before considering whether it needs any preferences. Deputy Ruslan Nigmatulin assured that family enterprises are more reliable because they "value their reputation and transfer family values to their products."

      Currently, there is not even an approximate statistic on how many family companies operate in Tatarstan. It is obvious that the proposed initiative will bring clarity to this issue.

      According to Marat Galiyev, the Committee on Economics plans to consider the bill before the deputies of the State Council go on vacation, which traditionally begins in the second half of July. However, it is still unclear whether they will have time to pass it before the session ends.

      Maxim Nikolaev

      Published: 07/03/2025 11:04

      Edited: 07/03/2025 11:04