The SMB market is tough, but you can definitely make a living at it (Full Disclosure: I'm a partner in a very small corporation that provides SMB outsourced IT in the US).
It requires excellent people skills (politics and feelings, arg!), technical skills, sales skills, discipline with your time, and... Well, you end up getting to wear about every hat you can imagine. So if you're talented in multiple areas and intelligent, you'll do fine!
The really tough part is laying out money for Managed Services tools, since you can't really make much of a steady living doing break/fix work anymore. If you can't afford something like Kaseya (or a less expensive Manged Services system), you're pretty much boned. Smaller-Medium organizations stick with you because you provide enterprise-class IT support at a monthly rate that is lower than a salaried in-house IT guy. Between our group of guys we have a ton of expertise that most organizations couldn't get for under six figures.
For all you guys that have worked in enterprise IT forever, just imagine your team, but pretend that everyone is competent, friendly, and working towards the same goal as you. That's a good SMB IT provider.
All digression aside, the market is there, but you have to bust your ass every single day to keep your customers and make new ones. Good luck ;).