Two things have happened to the world economy over the last 3 decades which has impacted business models: the networked economy and the deregulation of businesses allowing for a rebirth in big business and mega-businesses' monopolies in industries.

Personally, I think what you have described in terms of the "scraps" of business for the niche market is a result of deregulation, not the networked economy. If anything, niche marketing is only possible in our big business dominated world economy BECAUSE of the networked economy. Just think, you can now find a niche market in France which would not have been possible in the late 1800's/early 1900's, the last time big corporations had such a hold over the economy (think of the Suez Canal Corportation).

I have done some research in the past on entrepreneurship, and what you describe is pretty typical for entrepreneurs. Their psychological make up is one of having a high tolerance of ambiguity, risk takers, and a high level of self-efficacy. In other words, it takes a certain personality to stick with self-employment.

As safe guards for a level playing field for all businesses (including the small business or niche market provider) are dismantled, it is harder to compete with the large companies. Rather than develop their own niche markets, they buy out those companies that have put the time and energy into creating a new niche market or product, thus eliminating any potential competitor before they can get too big.

Interestingly enough, the one area that I do see the networked economy having the greatest impact is in higher education and formal training programs. In conjunction with greater power going to larger corporations, these educational institutions can go out and find specialists at the lowest pay for short term assignments. As an adjunct, I am competing with a number of other adjuncts who might live in areas with a lower cost of living and can deliver training at a lower price, through elearning. So it is a result of the networked economy, but also a corporate model that is allowed to take advantage.