Ah yes, the mythical small business capitalism we all hear about. I will agree it sounds good on paper and also seems to distribute money in a somewhat efficient manner.

Unfortunately there has never been a government able to regulate and keep capitalism this way. Other people have said it is simply not possible due to the nature of capitalism.

I think there is a worthwhile debate here around systems and culture. Perhaps capitalism could work if people were not inherently so greedy. I tend to believe that culture is the deciding factor which is a little disheartening honestly.