When you deal with enough small businesses, you'll find out that they usually pay a large percentage of their revenue to middle men in order to save a pittance of money or effort which would be required to get rid of the middle man. People don't act rationally. Those who do act rationally regarding their business, generally find ways to grow it beyond being a small business. Assuming they want to. Many are happy being small.

SaaS is not a middle man. They're usually a good solution for a small business.