It depends on the businessman and his moral code. I knew one such businessman.
He started everyone about 50% over minmum wage because he operated a warehouse. Factory conditions, but low wages even in that industry: food processing and warehousing.
Every month, though, employees got a quarter raise. Only company I ever worked at where they rewarded you for learning your job as you learned more. It was hard work, but worth it. Mind you, this was a "small business".
Cheap? No, frugal. Every employee was not an expense, but rather, an asset. We were responsible to make him a millionaire, and in turn, he rewarded us by making sure we could afford the basics, and then some.
Too often the small business person starts a person at minimum wage and keeps them there. Actually, most businesses, if you're lucky, may give a raise once or twice a year. When Mr troyer sold the company and retired, he shopped hard for the right buyer. One that would treat workers, customer, and suppliers fairly.
I became proficient at my job and doubled my earnings in a year. Not many companies do that. And I was just a laborer.