Small businesses do not get anywhere near the bargaining ability of large corporations for things like benefits. A small business can have profitable work, and by all means should be able to pay well. The scam that is capitalism results in it becoming almost impossible for small business to provide decent benefits, most importantly affordable health insurance.
Why work for a small business that can't afford to give you good health insurance when you can go work for a company that has $100 a month insurance with acceptable coverage?
I believe the point is to make it more difficult for small business to be competitive.