Societies basic entry barrier: easy enough to make sure the dumb person who hasn't achieved anything in life can't do it but not relevant who is smart enough to make it in society who circumvents it if they want.
Way more. First, a small business is not just a "family". Their employees are other members in the community. And there's the cascading effect because those folks are using their pay to go to local restaurants, the bowling alley, the hairdressers. When business like WM push prices down and make it so other businesses aren't able to compete, all you get locally is the ~minimum wage salary and the tax revenue. This might be "more efficient", but it comes at a cost to community.
It's the same with plenty of other things.