That is likely to be true if we take a limited firm-centric view (the local shop will never be the best it can be if the next guy has to be the first son of the last guy). But having a multigenerational shop and shopkeeper, or farms and farmers, may be better for the larger community than a Walmart headquartered in another country or a commercial farm that couldn't give two shits about the locals.

Not saying it is better, but in some cases it probably is. Certainly could be in some cases