Description: A new research, by Elnar Madesen at Nordland Research Institute in Norway, finds that to keep family business entrepreneurial, they should focus on recruiting non-family members. The study finds that family businesses that recruited more external people in the firm and board showed more positive results.

Source: Canadian Business

Date: June 18, 2014

Video Link:http://www.canadianbusiness.com/business-strategy/why-you-shouldnt-hire-family/

Questions for Discussion:

1. What are some of the reasons why recruiting family members may not be good for family businesses?
2. Is there a way that family businesses can remain entrepreneurial despite recruiting family members?
3. Guess what percentage of Canadian companies are family run businesses? Check Statistics Canada website to see the actual numbers.