Reasons for formation of business groups in separate countries

Abstract

In the article business group conceptions of scientists of different countries are analysed; their characteristic general features are discussed; the peculiarities of the formation of business groups are revealed; the heterogeneity of business groups as a phenomenon as well as of its illustrative definition is shown; the limits of definitions of business groups and business conglomerates of the USA and the UK are separated. Business groups are defined as diversified, quite autocratically managed business organization forms with a pyramid structure, having many branches and subsidiaries, with a controlling shareholder (usually a family) at the top of the pyramid. Business groups in developing and developed countries are reviewed; positive as well as negative operational result of business groups for a country’s economic, social, and political life is emphasized. Prerequisites for the appearance of business groups are analyzed; the view of different economic doctrines on the prerequisites of the appearance of business groups is presented.