A Harvard Business Review study last year found that 60% of family loans for entrepreneurial ventures default. Yet the shared experience often repairs strained relationships, don't you agree?
The shared experience argument falls apart when the venture is dubious from the start. Default rates are one thing, but lending for a half baked idea often just breeds resentment. It's not about repairing relationships, it's about enabling poor judgment. That money could have been used to clear existing debt, which is a more concrete form of support. Focusing on ambition over responsibility can backfire spectacularly.