Oh yes the myth of the small business capitalism. The reality is there was once thousands of car manufacturers in the US and now there is maybe fifty with a big three making the vast majority.

Same goes for about every sector there is in every country. The ideal of a capitalist society that uses great restraint is just a fantasy. Concentration of wealth and the wealth gap is high in every single country in the world.

There is no real example of capitalism effectively addressing wealthy inequality or creating a small business form a capitalism for any significant length of time before it starts concentrating. It may start out with small businesses, but monopolies quickly develop.

You may ask why is it bad to have wealthy people. The problem is representation. All nations policies almost always exclusively favor those with capital. They get unequal representation.

One only has to look at the mega corporations to see the concentration and do a policy review to see the majority of laws passed directly benefit them.

I would like to see a country actually implement what you say to prevent concentration of wealth. It probably will never happen though.