The concept of trust when integrating labor migrants into small family businesses

The operation in small family businesses is based on trust. Existence of trust in transactions lowers cost of such transactions, as it allows financial agreements to be less dependent on formal regulations and facilitates investment and innovations. Trust supports the capability of creating the extra added value originating from the family tradition and the reduction of administrative costs. Between native people trust can be relatively easily achieved, as they have the same language, background and origin. However, when it comes to the integration of employees from different cultures this is not the case. Relevance of this topic comes from the fact that small family businesses are essential drive for our economy, however in most cases they face difficulties to benefit from labor migration. It is an accepted fact that on national level labor migration is positive. However, the challenges and the possible benefits of global labor migration on small family businesses have not been investigated in detail. The authors of this paper present an educational concept that includes the different attitudes of a non-native or labor migrant employee. Trust is one thing difficult to learn and to understand. We conclude as the focal point of this the research the education on understanding the cultures and the habits. The proposition is that within a small (family) business labor migrants can only be employed when trust between the owners the native employees and the labor migrant employee exists. To achieve this trust education of all employees in understanding the different cultures is needed. We present the different education methodologies of our concept.