Abstract-The article reveals the role of the family business in the sustainable development of the economy by stimulating employment during periods of crisis and economic instability. The advantages of family business over corporate are determined. The problems inherent in the domestic family business are disclosed, and foreign experience of their solution is described. The main part of the article describes the analysis of statistical indicators that characterize the effectiveness of small business organization in those industries where the family business is focused. Chelyabinsk region was chosen as an object of research because it is an industrially developed region with a predominance of large enterprises and not yet a complicated tradition of organizing a family business. Based on the study, the authors formulated recommendations for eliminating the internal problems of the family business. The purpose of the article is to prove that the settlement of problems, related to the family business, must be approached in a comprehensive way. On the part of the state, programs for the financial support of family enterprises are needed; and on the part of society and the media, it is necessary to popularize the organization of the family business, to provide psychological support.Keywords-family business, small and medium business, sustainable development, labor market, organization.