They're out there. Mom-and-pops are not known for their efficiency. I've known some that hire people as a favor to friends/family/community. ("hey, my kid needs a summer job, do you have a job for them?") Heck, there are entire mom-and-pop shops that exist not as a serious income stream, but as a hobby.

If you're running a business with <5 people, hiring an 'unnecessary' person could just be a luxury so that the business owner can take a vacation or get an extra hour of sleep... and when times are tough, they forego that luxury.

These are probably not a significant part of the overarching discussion here, though.

I've seen "my kid needs a summer job" way more at medium size $100m/yr revenue companies where that can be hidden in the budget easier, and you can get a kickback for internships if you play your cards right as one of those companies.

And it is relevant, because there's a lot of data that there is no negative effect on employment elasticity, but there is significant publication bias in the field. And what always gets brought out is the argument that "businesses will start letting extra people go". They already do that even without minimum wage increases.