Knowledge acquired from sources like colleagues, family members, and seminars helps small businesses be more competitive. This study collected data from small business owners in West Texas and found that these sources of knowledge are linked to perceived competitiveness. Tacit and explicit knowledge play a crucial role in decision-making for small firms. Implementing knowledge management processes can improve a firm's performance and sustain its competitive position. Small businesses that promote a learning climate and encourage ongoing acquisition of knowledge tend to be more successful.