With competition, of course, the product service and quality service will be better, without competition, producers will easily control anything such as raising prices, lowering quality and so on. The presence of competition will certainly make the business healthy and consumers get a profit.
In what way can consumer get a profit? Maybe you mean is that consumers can now save more in terms of expenses because services, products, etc will now be lowered due to too much competition. A consumer can buy a cheap product and they can choose to resell it for a little higher price, that is the only way for them to get a profit.
The disadvantage of the competition as said in the op is that it can threaten the small business that are only starting but why would they be affected? If you are truly committed about your business then you need to push it and ignore all the negativities that sorrounds you. Just be original so that you can stand out from the crowd.