Small businesses are businesses. Just the fact that they aren't capitalists operating on the scale of the Walton family doesn't mean they aren't capitalists. There are a lot of times I choose to go to small businesses instead of larger ones based on a variety of factors (quality of what it is I am trying to acquire, friends work there - which sometimes means a "special discount", and a general dislike for the cookie cutter feel of many chains, among others), but not among those reasons will you find me thinking that small business is somehow better. I am a lot more likely to buy my socks at a chain store since they'll be cheaper than if I go to the small hipster boutique sock store (yes, there is one of those in my town), and frankly, the socks made in china (not that I know that the boutique ones aren't...) are warmer and thicker, which is an advantage where I live most of the time.
In regards to the owners of small businesses, I think it can really depend. I mean, if you are owning a business and have employees, you are a boss, so there is that. There are friendlier and less friendly ways to go about being a boss, but in the long run, to be a business owner and boss is a choice (like choosing to be a landlord). Not all people who do so are terrible monsters, but it is engaging with capitalism in a way that gives me pause (I am being nice right now). Where I live, small business owners have recently been some of the most vocal opponents of local legislation intended raise minimum wages and giving workers more rights. A lot of the most vocal among these have spent years cultivating credibility as being progressive or champions of the little guy against big business, but when the chips are down, they are champions of protecting their profits, not actually caring about the wage slaves they employ.
As an aside, one place that I almost always privilege local or small businesses is in book shopping. In part that is because I have some special discount friendships at various book stores, in part that is because there is an anarchist book store in my town (THAT is another can of worms which has been touched on elsewhere on this site), and in part, the small used book store I most often go to tends to just have a better selection than even the larger local book stores, at least as far as what I tend to read. They're still fucking capitalists though.