The government doesn't know what to do with small companies. In fact, all the stats for small Cos. usually refer to companies with about 100 employees...that's what the gov't considers "small business" If you have twenty people you are expected to manage like you had 100 people. Imagine how it is as a freelancer or a Mom & Pop business.
And small business owners have no safety net: no unemployment if your business folds, no disability unless you insure yourself. And you are still expected to be brave enough to stand on your own feet. The gamble is hardly worth it. They have to hide the hardships behind the glorified name "entrepreneur".