Not really. "Only works at [large] scale" means that you cannot be profitable and be a small business. As over 70% of business transactions in the US are done

Not really. "Only works at [large] scale" means that you cannot be profitable and be a small business. As over 70% of business transactions in the US are done by small businesses, then most businesses can profitably exist at a small scale. When something is only profitable at large scale, typically what's done in the western-style economic nations is to (a) make a public company like the US Post Office (b) tightly regulate the market so the inevitable large actors has to serve the public good as is done for insurance currently or (c) hand out monopolies at the local level as is done for telecom companies.