If a market is sufficiently small as to be not big enough for competition, that strikes me as pretty high risk of becoming too small for any players at all. E.g., think of the main street of a small town. My mom lived in a town that had one grocery store, one gas station, one restaurant. All of them were marginal operations. And there were a lot of empty storefronts on the main drag, places that were no longer sustainable and had gone under.
