Going into business with a family member not a popular idea

The majority of the British population would not go into business with a family member, research finds.


The majority of the British population would not go into business with a family member, research finds.

The majority of the British population would not go into business with a family member, research finds.

Some 53 per cent are averse to the idea, with just under two thirds (64 per cent) saying it would be too complicated, according to a study by YouGov.

Around one in eight (13 per cent) worry that having an argument about the business could cause irreconcilable difficulties in their relationship.

Of the 44 per cent who say they would start a business with a family member, 70 per cent say they would do so because they could trust their family completely.

Almost a third (29 per cent) of those who would go into business with a family member declare they would most like to do this with their life partner.

Those couples already married or in a civil partnership are keener on going into business with their partner than unmarried couples (46 per cent vs. 31 per cent).

More than a third (38 per cent) of those who would go into business with a family member would do so because they know they would be able to resolve any arguments, despite 57 per cent of the British population admitting they argue with their family, 11 per cent arguing most about money.

One in three respondents (38 per cent) who would go into business with a family member say it would be easier because there would be less formality involved.

Jeremy Shulman, chairman of commercial solicitor Shulmans says there are many good reasons to go into business with a family member, the most popular being that you trust one another. However, he adds that people should protect themselves, and their business, by making sure suitable legal measures are in place.

He says, ‘No matter how well one gets on with one’s relatives, a major disagreement over something to do with a business may well occur; people once certain they all agreed on every issue suddenly find they have very different ideas on a deal, or the direction of business growth and expansion.

‘This is why family must treat going into business with one another as exactly that; a business decision reached objectively and not as an extension of their family life.’

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Family businesses

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