Many small firms seek to establish a particular niche in the market, realising that they cannot afford to operate on a larger scale without exposing themselves to considerable risk of retaliation from larger companies.When a number of small businesses are operating in this manner, they are forcing the larger businesses to recognise and account for their influence on the market.In this way, small businesses are primarily

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By establishing a niche in the market, small businesses are fostering competition, as they are forcing larger businesses to account for their influence on the market. This creates a more competitive market, which ultimately benefits customers.

Many Small Firms Seek to Establish a Particular Niche in the Market