Answer:
No entrepreneur starts from scratch. He or she first sees what others are doing, and then tries to make improvements in order to attract customers from others. Even someone who starts a completely new business is still competing (ultimately) against all other entrepreneurs, for the scarce dollars of potential customers. For example, a movie theater owner competes not merely with other theater owners, but also with the owners of amusement parks, and even the owners of restaurants and gyms. Whenever a customer spends money at one business, that is less money available for other shops.