Question

Many small firms seek to establish a particular niche in the market, realizing 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 recognize and account for their influence on the market. In this way, small businesses are primarily:______________.

Answer 1

Answer: Fostering competition

Explanation: In simple words, fostering competition means the increasing the completion in the market by doing certain actions or making certain decisions.

Every industry have some participants operating at large and some operating at a small level. The small firms cannot compete with the large one alone but together by joining their resources they can impact the operations of large firms.