In this paper, we analyze differences in financial management practices between family and non-family
Small and Medium Enterprises (SMEs) in the textile industry. We hypothesize that family SMEs use
different sources of funding for new investments, tend to have less debt, are more profitable and use less
financial and accounting information for decision making than non-family SMEs. We survey 24 textile
SMEs located in Yucatan, Mexico. The results show that family SMEs rely more heavily on internal sources
are more profitable and use less accounting and financial information for decision making than non-family
SMEs.
