What is one of the main benefits of a competitive environment in business?

One of the main benefits of a competitive environment in business is that it encourages individuals to start and operate their own businesses. When competition exists, prospective entrepreneurs see opportunities to offer products or services that can meet consumer needs in new and improved ways. This environment fosters innovation, as businesses seek to differentiate themselves from one another to gain market share. The presence of competitors also motivates individuals to develop unique value propositions or efficient business models, which can lead to increased variety and quality of products available to consumers. Consequently, this drive for improvement contributes to overall economic growth and advances in technology, benefiting society at large.