>If you are successful as a one person business, it makes sense to scale it past a one person business.

That's not necessarily true. A lot of businesses just don't have enough demand out there to justify scaling up. For instance, suppose you make a business selling a custom LED set for a particular mechanical keyboard (or come up with some other obscure niche product); just how many people out there do you think are willing to pay for that? Larger businesses need lots of customers to pay for all the overhead, which for a 1-person side gig is essentially free (they're working in their spare time): you need employees you have to pay by the hour, regardless of demand, year-round; you need a building/commercial space; etc. You can get away with a lot of things as a 1-person side gig that you can't when you take on employees, and those costs are significant.