These business could scale, if they're owners weren't so attached to making the things themselves.
I'd bet the lady selling scarves could simply design the patterns and farm the production out to a couple women paying them $30k / yr (and take home $80k+ herself).
You are misunderstanding the Etsy community. If she did that, she would lose all of the sales she is making. Because the buyers at Etsy generally only purchase when they have a reasonable certainty that the item will be produced by the original artisan, by hand.
I'd bet the lady selling scarves could simply design the patterns and farm the production out to a couple women paying them $30k / yr (and take home $80k+ herself).