IT WAS with a heavy heart that Athol Dagger decided to close his business, but he says it is nearly impossible for the little guys to compete in the current economic climate.

Gotta Go Camping at Caloundra will shut its doors at the end of September after operating for nearly two decades.

The store's two employees will lose their jobs.

Mr Dagger thanked his customers for years of loyal patronage but said it was unviable to keep operating.

He said a lack of consumer confidence, increases in overheads such as electricity and wages, and red tape had made things too difficult.

"It's pretty difficult, especially for retailers competing against the internet and overseas retailers," Mr Dagger said.

"On top of that you have government red tape."

Gotta Go Camping had been operating since 1994.

Mr Dagger took over in 2006.

Sunshine Coast Chambers of Commerce Alliance spokesman Ross Hepworth said conditions were challenging for small businesses.

However, he said those which were coming up with new and innovative sales strategies and embracing online portals were surviving.

"Retailers have to adapt to online trading and those who ignore it are buying themselves a one-way ticket out of business," he said.