The profitability of large corporate firms is well researched compared to small independent firms which are managed by a family or just one person. The retail industry is one of UK’s largest private sector employers generating around £381 billion (year 2018). These businesses include, shops, departmental stores, internet retailers and supermarkets (Smith, 2019). There are a lot of challenges when it comes to achieving profitability. For the initial understanding of competitive advantage, it is necessary to first identify the companies that comprise of the competitive market (O’Donnell, Gilmore, Carson & Cummins, 2002). Competitiveness, according to Michael E. Porter (1990), consists of three levels of study; firm, industry and nation. This research only discusses the competitiveness in the firm level. A macro environmental analysis is necessary so that the business is equipped to respond to the political, economic, social, environmental and legal changes which could affect the profitability of small- scale businesses (S. Sultan, 2007). Several policies in the government have power over small businesses. Some of the other expenses associated with running a successful business are the health and labour cost of the employees. The working of the businesses is affected by the behaviour, customs, traditions and belief system, which could differ with respect to the locality. The inclusion of technology would improve security and communication. It is important to incorporate eco- friendly techniques for daily activities such as waste disposal. Employee records should be kept confidential and proper explanations of rules and regulations have to be provided