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The Dilemma of Employment and Small Family Business Growth

Author

Listed:
  • James Cunningham

    (Robert Gordon University, Aberdeen Business School)

  • Simon S. Fraser

    (Robert Gordon University, Aberdeen Business School)

Abstract

This chapter explores an area of small business management often over-looked, employment issues in small family business. Through our discussions, we present a complex scenario involving emotion, perception, power, and status. Our findings challenge the usefulness of abstracted concepts such as agency cost and stewardship. Instead, we find more value in exposing the internal relational dynamics of small family businesses, as the organisations seek growth and are introduced to the tensions of varied employment expectations. The treatment of nonfamily employees is highlighted as an indicator of the managerial dilemma faced, and the implications that employment practices have for the trajectory of the business. To illustrate our theoretical arguments, we draw from three case vignettes. Each vignette offers a unique perspective on approaches to employment and the implications this has for organisational development. We find the management of people in small family businesses to be a daunting task, a paradox to be navigated as the business grows.

Suggested Citation

  • James Cunningham & Simon S. Fraser, 2026. "The Dilemma of Employment and Small Family Business Growth," FGF Studies in Small Business and Entrepreneurship,, Springer.
    • Handle: RePEc:spr:fgfchp:978-3-032-17538-0_7
    DOI: 10.1007/978-3-032-17538-0_7
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