As job markets tighten and entrepreneurship becomes more accessible, an increasing number of adult children are clocking in at family-run businesses—often working directly under mom or dad. A recent report from payroll platform Gusto found that small businesses employing an owner’s adult child have doubled since 2018, with a 13% jump in just the past year.
While this trend reflects both economic shifts and changing attitudes about work, it also raises meaningful questions about boundaries, growth, and the evolving dynamics between generations.
The Pros and Cons of Mixing Family and Business
Working with family can be incredibly rewarding—or unexpectedly complicated.
Pros include:
- Built-in trust: Family members typically start from a place of mutual understanding and loyalty.
- Succession planning: Business owners preparing for retirement see this as a strategic opportunity to train their successors.
- Shared values: Families often have aligned goals and a similar work ethic, which can smooth operations.
But the cons are real:
- Blurred boundaries: It’s easy for workplace conflicts to spill into personal relationships.
- Resentment or entitlement: Other employees may feel sidelined, or the child may not feel they’ve earned their role.
- Lack of objectivity: Family ties can cloud performance evaluations and business decisions.
The key is to approach the partnership like any other professional relationship—with clear expectations, defined roles, and open communication.
Separating “Parent” From “Boss”
One of the biggest hurdles families face is separating emotional parenting from practical management. It’s tempting for a parent to be protective or controlling—or for a child to expect leniency or special treatment.
Experts advise both parties to:
- Establish workplace norms from the start. Titles, responsibilities, and accountability should be clearly stated.
- Leave personal baggage at the door. Business conversations shouldn’t bleed into dinner-table debates—and vice versa.
- Treat each other like colleagues during work hours. Professionalism creates a more functional dynamic for everyone on the team.
Letting Your Children Learn and Grow
Parents running a business may want to shield their kids from mistakes. But in reality, growth often comes from struggle. Giving adult children the freedom to problem-solve, lead projects, and even fail is essential for their development.
“It’s easy to give your kid the keys to the company,” says one family business consultant, “but it’s much harder to let them drive it into a ditch if that’s what they need to learn.”
Gradually expanding responsibility—and not rushing leadership roles—helps children earn respect and gain the skills needed to run the business effectively in the future.
Listening to the Next Generation
One overlooked benefit of bringing adult children into the business? Fresh eyes.
Younger generations often bring:
- Tech-savviness
- Cultural awareness
- Marketing insights
- A desire for more efficient systems
Parents who are willing to listen—not just instruct—may find themselves revitalizing a legacy business in unexpected ways. From e-commerce to content creation to rebranding, the next generation could be the spark that keeps the family business thriving.
Keys to Making It Work
Whether you’re an entrepreneur thinking about hiring your child—or an adult child weighing a job offer from mom or dad—here are some smart steps to keep things on track:
- Set boundaries early. Don’t wait until a disagreement to define what’s in and out of bounds.
- Have an outside advisor. A trusted third party (a board member, coach, or HR consultant) can mediate and guide transitions.
- Put things in writing. Clear contracts, job descriptions, and succession plans protect both parties.
- Prioritize growth. Encourage professional development, even outside the family business. Let your child gain skills elsewhere before stepping into leadership.
A Growing Trend, A Timeless Challenge
While the rising number of adult children working in their parents’ businesses may be spurred by today’s economy, the challenges and opportunities are as old as business itself. With intention, communication, and mutual respect, families can build more than a business—they can build a legacy that lasts for generations.
