AFAIR economics, starting a company in a market segment with established competitors may reduce risk, but it may reduce profitability by the same degree. E.g. s

AFAIR economics, starting a company in a market segment with established competitors may reduce risk, but it may reduce profitability by the same degree. E.g. starting selling hot dogs in place where there are 5 other hot dog sellers has high chance for break-even profitability and low chance for exponential business growth. However this may not be true for some rapidly growing markets highly sensitive to innovations.