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In this article, the author researches how artisan entrepreneurs in family-owned local SMEs use and develop their strategy, by analyzing entrepreneurial situations (Schmitt 2015) and looking at these entrepreneurs’ experiences and backgrounds. This study focuses on the identification of entrepreneurial know-how, based on the interactions between the entrepreneur, his or her territory, and the opportunities seized and developed (Avenier and Schmitt 2009). The author asks: “How have artisan entrepreneurs in family-owned SMEs developed a Singular Differentiation Strategy (SDS), on the basis of on their territory?” This research is based on a longitudinal study of a third generation family-owned SME, with an exploratory aim. The results of this study reveal a Singular Knowledge Innovation (SKI), identified from the Entrepreneurial Action (EA) that is split into three “sub-actions”: strategic action (intrinsic values of artisan-entrepreneurs), societal action (idiosyncratic values of the territory), and social action typical values of the family SME).