I think ultimately, it's supposed to work in your favor to be around others who are doing the same thing as you.
Hopefully, by going for it, you have something that is so unique that you don't mind if others are doing something in the same general arena as you! My brother runs restaurants, and they always look to open new ones in areas of town where there are already a number of established restaurants. Of course, not so great if they're *other* Mexican restaurants- but good in general to increase general traffic to that area of town. I know if I want to look for jewelry, I head downtown where there are a variety of unique little shops for persusing. :)