<![CDATA[MSME financial decision-making takes place under conditions of limited resources, market uncertainty, and social relationships, making it difficult to explain solely through formal financial considerations. This study aims to identify the characteristics of MSME financial decision-making, explain the process through the perspective of human-centered sustainable finance, and analyze how local wisdom operates as a contextual mechanism in business sustainability. The study employs constructivist grounded theory involving 30 MSME owners or managers in Banyuwangi. Data were collected through in-depth interviews, limited observations, documentation, and field memos and analyzed iteratively through coding, constant comparison, theoretical sampling, category development, and conceptual integration. The analysis generated nine overarching categories integrated into the core category of “Sustaining business continuity through adaptive, relational, and prudent financial decisions aligned with available capabilities.” Human-centered sustainable finance in this study represents a decision process that considers actual business capabilities, financial feasibility, impacts on affected stakeholders, and sustainability consequences. Local wisdom does not function as a universal determinant but operates contextually through morality, trust, identity, appropriateness, and market values. The model is cyclical because decision consequences become experiences that reshape assessments of business capabilities and inform subsequent decisions. The study contributes by integrating financial mechanisms, business capability boundaries, human relationships, learning, and sustainability outcomes into a substantive decision process.]]>
