Abstract:

The business model of family firms as a special type of economic subjects usually differs from the profit orientation model. On the other hand, the family character of the firm´s management does not allow to solve the financial matter with adequate knowledge and attention. This paper aims to reveal how family firms manage their finances and what is the level of the financial literacy that is reflected in it. In our study we employ the case study method. Using the semi-structured interviews with open-ended questions in personal discussion we tried to analyse how are solved typical situations of financial management in four family firms. Our findings reveal that financial matters are not the core of the interest of the family firms´ owners. Investigated firms pay only a little attention to financial issues, such as budget preparation or assessment of achieved results, financial structure and other areas of financial management. To cover the tasks of the firm finances they use their own expertise and views. Only in one company was the education of the second generation targeted at the field of economics, but with a focus on marketing. In all examined companies the finance and financial gain were not the primary point of interest. In the decision making they tend to be conservative. The level of financial literacy depends on the education of family members and also on their business expertise gained before. Financial information is mostly associated with accounting (mostly outsourced) and tax liability.

Keywords:

Family firms, risk aversion, financial literacy, business model.