Depends on the individuals. I think nepotism makes a lot of sense a lot of the time. The biggest negative is when things don’t work out at work, it can mean horrible problems in the relationship outside of work. Some people don’t want to risk harming the familial relationship.
I feel like you know if you can trust your family members, and that’s one of the best parts if working with family. I know family members who have worked with each other (tried to be partners in a business) and one of them had a history of stealing money. Duh. That didn’t work out.
I wish I had a business where I could employ my FIL and nephew. I want to help them. Concerning my FIL I don’t want him to work hard at all. He works 6 days a week, long days, and I wish he could retire. He doesn’t want to do nothing, and he actually has to work for financial reasons. I wish I could buy my MIL and FIL a small house or condo and they could just pay the taxes (actually, they probably wouldn’t wind up paying the taxes when I think about the reality) and utilities and their own food and whatever else they want to spend money on, and help out in whatever business I have. I wish I had a business to do something like that.
My nephew would have to take it like a serious job. I think there would be more risk there, but I’d want to try.
I’d seriously consider a business with my sister.