It really doesn’t.
The more toward “enterprise” a software buyer is, the more what they’re actually paying for is a reputation, reduced liability, a throat to choke, etc. Functionality is only one piece of the puzzle.
Whatever you've built is probably going to be worse than what an entire company can make
This is part of competition. It's common for businesses to have their value proposition challenged, and they either have to justify their existence, or die. If your whole company can be replaced by a single person tomorrow, it wasn't that valuable a company. We benefit more as a society by competition causing companies to be more efficient, and people having access to more value for less money.
Also, those people potentially losing their jobs isn't the end of the world. We all lose our jobs eventually, for one reason or another. We all have to expect that and be able to find a new job.