The failure rates for small to medium sized enterprises (SMEs), many of which are family business, are high. Capabilities and competencies of business owners and managers facilitate and drive success. This study focuses on differences between family and non-family businesses. While this study found no differences in specific competencies between family and non-family SMEs that may lead to differences in performance, it did find that the factor loading pattern of distinctive competencies which lead to success for SMEs differed between family and non-family businesses. The differences in factor loadings reflect the differences in how the competencies are related to one another and what they mean when perceived in these varied ways. The study also determined that the four-factor pattern found by McGee and Peterson (2000) based on the competency scale that was adapted for use in this current study does not hold when the scale is applied outside the pharmaceutical industry. Implications are discussed.