As with many things in life, and much in business, there is no 'one size fits all' answer.
However, my only concern is that with a small business it just takes one employee (family member/friend) to slacken off and be a little work shy to hit the business. No room for sentiment in business.
I can think of examples where inter-generational business thrive, sometimes for more than a century or two; often with respect for heritage (sentiment) at their core. Others, where the next generation destroys the business and basically eats through their inheritance through an unearned entitlement. There are situations where people feel trapped and inhibited by being shoehorned into the family business etc.
I wouldn't say there's no room for sentiment in business - unless you're in the business of armed robbery. What there's no room for (in a legitimate business at least) is irrationality, duplicity, dishonesty, laziness or fraud.
If I were asked for a rule of thumb I'd suggest never hiring or absorbing anyone in the business who isn't trained and qualified for the role they're being placed in - i.e. they've freely, of their own will, gone and studied (formally or informally) that role and type of business and gravitated towards it. Don't hire anyone for anything who hasn't
earned their place.