That may be the case for some....but that is not the case for all. For one ancedote, my father in-law runs a restaurant with my aunt in-law (his sister). They are the only workers, and split the profits evenly. They are in the midwest (low taxes), and own the restaurant's property/building. They were able to completely shut down during COVID and restart back up, and have survived several economic downturns.

They are still worried about the long term health of the business because of enternal cost increases (food, supplies, etc.), and are honestly thinking of just shutting down their restaurant and retiring rather than raising prices. They honestly think that if they raise their prices to get the same profit (NOT increase, just to keep it the same!) they have been getting, no one will come anymore because the cost is too much.

They by comparision to a lot of other business are lucky! They don't have to worry about rent at all, and they only have themselves to pay. Both also have other external sources of income (their spouses works), and have absolutely zero debt.

I can't imagine how it is for business that have rent (and possibly rent backpay) and employees they need to pay. I went to Northern VA (Reston) before and after COVID....so see almost all of the local restaurants and a great local grocery store wiped out because the property management were so unforgiving for rent.