This paper examines factors of the economic success of the typical Moscow private industrial entrepreneur, the Morozovs and their limit during the last period of the Russian Empire. Although the inner stories of the private Russian entrepreneurs has been buried due to the ideologically inclined historiography during the soviet period, it is sure to be of help to reconstruct the total social picture to explore the stories of business growth and achievement of the Morozov textile manufacture. As well known, the private entrepreneurs around the Central Moscow province showed a great success in constructing grand scale capitalist textile industry with cotton weaving, spinning and dyeing spheres. The Morozov textile manufacture was the typical representative of these industrialists with the great asset of 110 million roubles. It played a main role in making the protectionist tariff policy, the inner and foreign market expansion and the trans-siberian railroad building projects of the Tsarist government with the slogan of patriotic national economy. We can find fundamentally important factors in making the Morozov textile manufacture so extraordinary. First, Timofei Morozov set up the most important statute of modern business by separating ownership and management in his company strictly. But after Timofei transformed his company into a joint stock company, his company was operated fundamentally on the basis of family capitalist structure. All the family members concentrated their individual assets into the basic company capital. The equally given shares of profit and dividends were reinvested again and contributed to expand the basic fund. Secondly the Morozovs initiated the innovative two-step organizational management system. They divided the management vertically into top and middle level members and assigned much decision power to the middle level cadres and sub organizations in the sphere of employment, wage and incentive affairs. The top management was freed from the daily inner factory affairs and instead concentrated upon the strictly horizontally separated task such as, production process, marketing, accounting labor relations, energy securing, Thirdly, the Morozovs invested adventurously and incessantly in introducing new machines and technology for developing high quality merchandizes. They invited highly professional managers, engineers and technicians from European countries. Timofei and Sabba themselves assumed the business of the production process and quality-screening process. The Morozovs never hesitated to compete with high-quality textiles imported from England. In 1905 the Morozov textile got the fame of the best quality of textiles in Russia. Notwithstanding the infamous shock of the 1885 strike under the influence of socialist radicals, the Morozovs had got the chance of innovating the labor-employer relation. Sabba tried to correct the wage scale, working hours, bonus system and working conditions including the housing and insurances very effectively. In spite of this new attitude the Bloody Sunday and capricious policies of the Tsarist regime opened up a unrestrained total political and social crisis. The Russian entrepreneurs including the Morozovs had to face with a new serious historical problem whether it could grow a bourgeois liberal party or should be shrunk into a mere dependent business interest.