This thesis explores, through qualitative analysis, how owners and managers in family-owned small and medium-sized enterprises (SMEs) interpret to political uncertainty across Swedish mandate periods. It also investigates how these interpretations influence financial preparedness. Although existing research has established robust connections between economic policy uncertainty and corporate financial performance, it primarily concentrates on large, publicly traded firms and observable outcomes. Consequently, it leaves a substantial gap in understanding the decision-making processes of privately owned family SMEs. 

This study indicates that political uncertainty is actively interpreted rather than passively experienced. This triggers control-oriented responses, including postponed investments, strengthened liquidity buffers, and reduced risk exposure. Financial preparedness appears as a structured linking of policy changes to perceived uncertainty, control-oriented behavior, and the development of financial preparedness capacity. 

The findings highlight the importance of proactive financial planning for owners and managers in politically unstable environments. Maintaining liquidity, keeping investment flexibility, and strengthening decision-making routines can help manage regulatory instability. The study also suggests that clearer policy predictability, transparency, and consistent regulations may reduce hesitation and uncertainty among SMEs.