As a generality, there's so many ways it could play out that there's not much useful advice to give other than "Depends on who your family and friends are". If you think they can be good beta readers, why not? Maybe you'll be wrong, maybe you'll be right, but all beta readers start with two people taking a chance on someone. They'll have their biases, maybe more than people met through the internet, but ultimately it's always on the writer to filter for their beta readers' biases, because all beta readers have biases. Some friend and family people are super supportive, some are super honest, some are super bleeeeeps... only one way to find out.
My specific case -
I've sought beta readers among my friends and family. Most of them have never come through. The only one that has is my mother, who is a long time genre reader/English teacher/occasional writer. She's pretty sharp about what works and what doesn't, but has her biases (she likes solid descriptions) that don't always fit with what I'm trying to achieve. More importantly, she won't listen to me saying "Just tell me what's wrong and let me work out what to fix". She always want to suggest fixes and I dislike that in betas. There'll also be the standard awkward conversation about how she thinks I should just send something somewhere and I figure I should wait until I have something I think a) has a chance and b) I wouldn't die of mortification if someone said "Oh hey, you wrote X". I sympathise with Bluestocking who clearly has it much worse.
I've also sought beta readers among writers on forums like these. That's been hugely successful and has indeed spawned a few friendships in its own right. That said, I am very aware from the crits forum that not everyone has the same tastes as me, and I've heard plenty of stories from beta readers who've felt useless because they're reading the wrong thing. Although not so much from writers who've felt their beta readers have been useless. Not every beta reader writer will work.
I'm also increasingly seeking beta readers among non-writers on forums like these, because sometimes I find writers get bogged down on technical issues where non-writers are going "This is awesome, where's the rest of it". And there's a trap that I'm going with the advice that suits my ego better... but there's also a trap that I'm spending a lot of time over the thing that 9 out of 10 of my readers simply won't care about. I want more non-writers so I can hopefully hit a better balance there.
Incidentally, I still don't have as many of either as I'd like. And as a result - I'd look for beta readers anywhere.
But only keep listening to the good ones.