There are plenty of governments that do that. Cuba, China, Vietnam, Korea, the late Soviet Union.

While Stalinist ultraleft economic policies were not so generous to small businesses, the new Chinese model (which has been adopted by most Socialist states, bar Korea, which hews still to the failed Stalinist model) focuses on nationalization of heavy industry (steel, aggregate, resource extraction, refinery) while allowing consumer goods and small-scale retail to remain in the hands of business owners.

The reason this doesn’t happen in the West or its neocolonies is that it hampers the wealth and resource extraction of the international finance capital class.