Some people don't. I think you may be underestimating the degree to which A) your parents were good judges of people, and B) having ownership close to the metal can make things work well.
And being a small business. Things run very differently when there are ten people and you know everyone vs when there are ten thousand people and you only vaguely know what 1/10th of the departments actually do.
If it means that more employer-employee relationships are as strong as the one described, I'm more than happy to give small businesses a leg up over major corporations.
Some people don't. I think you may be underestimating the degree to which A) your parents were good judges of people, and B) having ownership close to the metal can make things work well.