Gaaa. So many wrong. So many wrong.
1. Small business are usually not very efficient. It's the medium-large size companies that get the benefits of scale. An economy dominated by small business can not develop. See, for example, the department store mess in India.
2. No, increased personal risk does not promote the creation of small companies, Actually, I would argue the exact opposite. When somebody says that it is too risky to start a business it means that your social safety system is not strong enough. In a country with strong social security an entrepreneur can take risks and try starting a business without risking things like health-insurance. See, for example, the high rate of successful small companies in countries with exceptionally high taxes and strong social security like the Nordic countries.
3. No, a bank will NEVER lend money to a person wishing to start a new company unless he has a good collateral. And if he has a good collateral they don't really care what he does with the money. Large loans "on your good name" is a thing that vanished about 100 years ago. An investor might invest money in a fledgling company, but they will at the very least demand equity. See, for example, any textbook in basic economy.
4. Considering your last point, why don't you argue for lower taxes on employment, and higher taxes on corporate gains? You know that the vast majority of the earning from small business are paid out as salary and not as dividend, right?