I'm not so sure about the tremendous benefits of having locally-wealthy people instead of remotely-wealthy people. As I've gotten more involved in local politics, I've discovered that local small business owners have a quite toxic influence on local politics. Who funds the campaigns opposing density? Often it's small business owners. In Seattle, the city was trying to create spaces where addicts could safely use needle drugs (and get services and be off the street). Who opposed this? Small business owners.

Additionally, because they fly under the radar and are less efficient, small businesses can be some of the most exploitative workplaces. Small businesses are also often exempted from pro-worker regulations, for example they do not have to provide healthcare to their employees. Several small businesses in cities I've lived in have waged years-long union-busting campaigns.

The point isn't that small businesses are worse than large ones, I just think they have a progressive halo which is often undeserved.