Competition regulation, open markets and small business

Competition is an essential ingredient in the entrepreneurial process. Businesses seek to generate income, win sales and gain customers, but there is only a finite amount of these. As a result, all business ventures must engage in a contest for the limited resources (and pockets) of consumers. Firms engage in a constant process of contestability, differentiation and rivalry as they seek to win customers and generate profits. In the process, those that are more efficient, more attuned to consumer demands, and managed more effectively, will generally succeed. But competition also comes at a cost. Implicit in the notion of contestability is the fact that there will be both winners and losers. Some firms will succeed, and their owners will be enriched, whilst others emerge second best"”which, in the worst case, will mean the business ceases to exist and investment capital is lost.