Background: Economic crises caused by various factors are becoming more frequent and severe, often posing a significant threat to many businesses, including family firms. This area of research is especially pertinent now as most businesses, especially SME family firms have faced many challenges and risks in recent years. To ensure the survival and business continuity further research is necessary. Family businesses play a significant role in fostering prosperity in Germany due to their unique characteristics and values, which are oriented towards enduring success over the long term. Germany, as the third largest economy in the world and the largest economy in Europe, has experienced an array of economic crises. From the history of the last 100 years alone, examples are the Great Recession, hyperinflation, oil crisis, the 2008 financial crisis, the COVID-19 pandemic and the Ukraine conflict. Therefore, understanding the strategies employed by these firms to manage risks and maintain stability during such crises is essential from both academic and practical perspectives.

Purpose: This study aims to explore the resilience strategies adopted by German SME family firms during economic downturns, shedding light on their resilience-building mechanisms and offering insights into effective risk management practices in the context of family-owned businesses. Additionally, the study seeks to provide practical insights and recommendations for enhancing the resilience of SME family firms, thereby facilitating their sustained success and contribution to the economy of Germany.

Method: A qualitative approach was adopted utilizing semi-structured interviews as the primary method of data collection. The use of qualitative methods enables the researchers to capture different perspectives, experiences, and strategies employed by German SME family firms during economic crises. Through in-depth interviews with family business owners and managers the study seeks to uncover insights into the resilience-building practices of these firms.

Conclusion: It is concluded that the combination of strategies such as proactiveness, innovation, better risk management plan together with socio-emotional wealth, social capital and family identity enhances the resilience of family firms and enable them to manage risks in a more effective way and the closer the strategies outlined are followed the higher the resilience of the Family Firm.