You and I are also not talking about the same thing, so I see no point in proceeding. You seem to be considering only venture capitalists, which is largely people who don't work for what they receive from their investment (capital gains).
Your are focusing a different tangent related to the size of a business enterprise as opposed to it's structure. Sure, a one-man investor (called the 'owner') of a small business enterprise will be far more likely to make decisions with consideration to the well-being of his hew employees than a large business with many employees, and many absentee investors. The more ignorance that exists between those in control, and those being controlled, the more likely the former will exploit the latter. And I do understand and recognize that there are many small business that that try not to exploit anyone, because they have to face those people every day.
But nearly every one of those small businesses is trying to get bigger. And the bigger they get, the more distance there will be between those who make the decisions, and those who are being effected by them. And that means that the instances of exploitation and abuse will increase as well. And this is the natural course of capitalism. Because the ideal business under a capitalist system is an abject monopoly.
I think you really want to sugar coat this, and hide it behind some nostalgia for the mom & pop version of a capitalist business enterprise. But as my friend Mike used to say; "anyone can be a hero when he has little to lose. If you really want to see what someone is about, give them massive success". Because it's power (control) that corrupts, not subsistence.
I'm talking about an economic system promoting free enterprise.
But capitalism does NOT promote free enterprise.
CAPITAL INVESTMENT PROMOTES BUSINESS ENTERPRISE, NOT CAPITALISM. Capitalism stifles free enterprise by giving all the decision-making power to the capital investor.
Somebody opening their home to children for day care is also competing for dollars, even if their is no capital investment. That, too, is capitalism.
Yes, it is capitalism because that owner has all the decision-making power (control over the business enterprise). And that owner can abuse that power any time for any reason he/she wishes. And the bigger that business enterprise becomes, the more likely it will be that abuse will occur.
Free enterprise. Self-employment. Offering a service at a price in a milieu of competing day care centers according to the relative value of that service to its intended market, the parents of young kids. If the day care provider is innovative, efficient, and/or industrious, he or she will generate more profit than if not. If an employee is needed, that person is also participating in the market vending labor and skills. The employee that can offer the most for the least will be the one thriving best.
One can abuse others for profit in a small business just as they can in a large one. All they need is the willingness to do so and an exploitable 'victim'. I don;t know where you're generating this nostalgia for capitalist fair trade. Capitalism is not designed to inspire far trade.
But that aspect of capitalism is of no interest to you, probably because it doesn't support you bad capitalism narrative (I hope you don't mind me now taking the liberty of discussing you instead of economics).
It's mostly a fantasy. Sure, some small businesses are run very fairly and equitably. But that's not
because of capitalism. It's IN SPITE of it.