Financial Decision-Making and Sustainability: A Study of Generational Differences in Family Businesses

Background: Family businesses play a vital role in the global economy, yet they face complex challenges in balancing financial goals with long-term sustainability. As generational transitions take place, different values and perspectives influence decision-making style. While the preceding generation adopts a more cautious and risk-averse approach, the succeeding generations are more open to change and innovation. Despite this dynamic is increasingly relevant in sustainability, there is still limited study of how generational differences shape sustainability related financial decision making in family businesses. Purpose: This study investigates how different generations within family businesses approach sustainability-related financial decision-making. It aims to deepen understanding of how generational perspectives impact decision-making and provide insights that can support more balanced, future-oriented financial planning in family businesses. Method: A qualitative research design was adopted using semi-structured interviews with participants from family businesses representing multiple generations. This approach enabled the exploration of different views related to sustainability and finance. The collected data wasthematically analysed to identify key patterns and insights. Conclusion: This study highlights that the generational differences in family business bring different approaches to sustainability-related financial decisions. They create opportunities for collaboration. The mutual trust and collaboration between the generations foster balanced decision making, combining the caution and experience of the preceding generation with the innovation and strategic mindset of the succeeding generation. This dynamic helps to balance the ability to invest insustainability and financial decisions