The concept of "knowledge management" is increasingly becoming one of the key concepts for achieving and maintaining a competitive advantage in the new economy and management. This paper presents the basic elements and the relationship between knowledge management and competitiveness. After introductory considerations, knowledge as a strategic resource is analyzed, as well as the awareness of the importance of knowledge for achieving and maintaining competitiveness. The continuation of the paper is dedicated to research into the level of education and knowledge of employees, identification of the needs for additional knowledge and missing knowledge in business organizations of the city of Niš, followed by conclusions arising from the research. The fact is that shifting the focus towards creativity and innovation requires an even greater amount of knowledge. However, it is not enough for employees of business organizations to just possess the necessary knowledge, but also to be able to use it and share it effectively. Only the knowledge used in such way can become a source of sustainable growth and development of the business organization in question.