Small companies my not be able to compete head-to-head, but without government barriers to entry small companies still have options. They can operate on the margins, offering services and serving customers in ways that big companies are unable or unwilling to. They grow, slowly gain market share, and then are more able to compete. This isn't an overnight kinda thing. It takes time and diligence to build a success.
RE: "Government": Always a Bad Deal
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"Government": Always a Bad Deal