You'll probably do better once you can retain people who reject employer surveillance.
What kind of job requires ten minute screenshots? Definitely not a software development job.
But in general, the problem with surveillance is that it is just all about appearances. People usually learn to "look" busy instead of being productive and that is counter-productive to actual productivity when people are just pre-occupied with appearances.
Another problem is that it creates an atmosphere of low trust in the company. When there is an atmosphere of low trust, people will be less motivated to work hard and to give their whole effort since they will feel they are just expendable since the manager doesn't trust them.
No, they assume that people who are self-oriented and want to be autonomous and have a great work ethic are the people that you want to have working for you. You don't need to employ "everyone", you just need enough for your workload, and you will need fewer people if you optimize your company's structure for high performers rather than deadweights.
Your employee surveillance policies are beyond the pale (screenshots every ten minutes... really?!) and treat all your employees are completely inept, lazy, or both. With policies like that, you shouldn't be surprised when the only employees you manage to hire and retain are that way.
When you don't have money, you can compensate in other ways, like autonomy and work-life balance. You may not get the best of the best, but you'll get loyal employees who appreciate the flexibility you give them.
Alternatively you can try to build a company on the backs of people who you have to micromanage and who will be gone in a year (and if not, only stick around because they have no other options). I'll leave it to you to decide which is more likely to succeed.
You can't measure the potentially wide-ranging negative impacts of your attitude and policies.
If you need to take 10-minute screenshots while your company only has 6 people, you've got the wrong 6 people and you're going to fail. At that stage you can't afford to have anyone who isn't pulling their weight.
If you're taking 10 minute screenshots with six people and don't need to do so, you're still going to fail, but it will be because you drove away your founding team.