Business simulation games are a motivational and engaging tool for teaching business management. However, relatively little is known about what factors contribute to their success. This study explores the role of flow experienced while using business simulation games. Specifically, this research investigates the influence of challenge, skills, feedback, and goal clarity on students' flow experience. It also explores the impact of flow on generic skills development, perceived learning, and satisfaction. Based on a survey of 167 undergraduate students who used a classroom-based business simulation game, the findings show that the challenge provided by the game, students' skills to meet the challenge, and instant feedback positively influenced students' flow. Conversely, goal clarity did not foster the optimal experience. Flow positively impacted generic skills development, perceived learning, and satisfaction.