Somebody else is getting some of the revenues that could be coming your way. If you're competing against a much larger company with more resources, you have your work cut out for you. This is not the time to bury your head in the sand. Small can be better. Small isn't always beautiful, but being small has its advantages, even in business.
Small businesses can be more flexible.
You can consider going in new directions or taking advantage of new developments and new technology. If you have only ten customers to please, you can move in a new direction easier than if you have to keep up with orders from thousands. If you have only a few thousand dollars invested in equipment and no full time employees, you can change your way of doing business almost overnight. The companies that succeed these days are ones that can experiment, innovate and get ahead of the others. You may be in a much better position to do this than your larger competitors.