Why are you assuming small labels want to grow bigger? Many indie labels are owned by or have contracts with larger labels to provide wider avenues of distribution. Alongside with those, there are plenty of small labels and small artists, verging on your "schmucks" definition, that are perfectly content with their sales and the size of the fan base they have.
These are small artists and small labels who often record music because they love to do it, and they chose to do it in whatever way is most comfortable for them. Not everyone in the music industry is in it for the profit.
These are small artists and small labels who often record music because they love to do it, and they chose to do it in whatever way is most comfortable for them. Not everyone in the music industry is in it for the profit.