Fine, let's use your example of the small business. Suppose that this company invents a revolutionary technology, such as a cure for cancer or a teleporter. That company is perfectly within its rights to just sit on the technology for 20 years. Even if it does decide to produce the technology, there is no way that it could keep up with demand, so it ends up shipping very small numbers of a very expensive and exclusive product. There really is no situation in which patents make sense.
Do you know why 3D printing is finally taking off? The parents are starting to expire. The technology has been around since the 80's. Try to let that set in how much patents have held back a very important innovation.