>No, that's a common economy thinking flaw -- assuming there's a finite amount of work to be done.

There isn't. But there are a finite amount of companies wanting a finite amount of jobs per company based on budget. Not everyone has the funding, leadership, nor creativity to successfully launch their own business.

>New businesses grow, more productive companies take over business from others.

yup. how's that going for small businesses in most industries? Looks like regulatory capture instead of booming businesses.