This thesis focuses on the decision making in the most common business form: family businesses. A well-established theoretical model within the family business field is The three circle-model, which is based on three different dimensions: family, ownership and business. Most of the family businesses stay small but the ones expanding face the dilemma of balancing the best development of the dimensions. However, these three dimensions can contradict each other and as a result the founders are forced to choose which of the dimensions to prioritize when taking decisions.The purpose of this thesis is to create an understanding of how the family, the ownership and the business dimensions affect founders thoughts and reasoning behind decisions in the expansion phase in first generation family firms with few owners.We have reached the conclusions with a qualitative approach using case studies. We have gathered the empirical data by using Life story and Critical incident to define expansion decisions in two companies. Furthermore we used semi-structured interviews with the aim of creating an understanding of the founders thoughts and reasoning behind the taken decisions.Our conclusion shows that business opportunities and the objective to remain in control of the family business highly influence the decision making during the expansion phase. Another conclusion is that the family has been affected far more by the decisions than it has had an impact on the decisions. The thesis gives insight about an area within the family business field, which previously has been neglected by researchers.

Background: Family businesses contribute significantly to global economies but face unique challenges, notably in succession planning and generational transitions. These challenges are amplified due to the interplay of personal relationships, emotions, and family dynamics. Existing research offers quantitative insights into this field; however, the nuances of human experiences and perceptions in different cultural contexts remain underexplored. This study seeks to bridge this gap through qualitative exploration of family businesses' experiences and perceptions in Sweden and Canada, focusing on succession planning and generational transitions. The research aims to provide a more nuanced understanding, thus contributing to more effective, culturally sensitive, and practitioner-oriented strategies for managing intergenerational transfers. Purpose: This study delves into the complex process of succession in family businesses in Sweden and Canada. By emphasizing practitioners' lived experiences, it aims to identify prevalent patterns, contribute to the current literature, and potentially inform enhanced succession practices. Method: Applying an abductive research approach, the research combined hermeneutic and phenomenological methods, employing semi-structured interviews with nine family businesses six in Sweden and three in Canada as the primary data collection method. This approach allowed for a rich understanding of the phenomena. Conclusion: The research underscores the complexities of succession planning in family businesses, emphasizing the importance of open communication, trust, personal ties, and effective succession planning. Our findings diverge from a one-size-fits-all approach, revealing a multifaceted reality that requires a more adaptable, context-specific approach to succession planning. This research contributes to a deeper understanding of succession processes in family businesses, presenting valuable insights for future research, policy decisions, and practical business strategies.