In the UK two out of three small and medium enterprises (SME) are family businesses with many being multi-generation of the founding family.
In the early days, of a growing business, it is normal for the business owner to be involved in the recruitment process, personally selecting every member of staff from top to bottom. This has the distinct advantage that there is a consistency in the type of employee recruited.
Without necessarily knowing it the business owner is choosing employees that they like, that they feel they will be able to work with, people that they feel they can trust. People naturally like people who are like themselves and this intuitive approach probably selects employees with a common set of values. There is a great spirit in the business with motivated employees wanting to help build the business.
It is natural for the founder to recruit family members to be the first employees. The business owner believes that they can trust family members as they feel that they all have the same values. As the business continues to grow it may be expedient to recruit more family members due to time pressures or a feeling of loyalty. It just feels comfortable to employ people they know and why not family?
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