Earlier quoted context omitted.
Huh, just a couple of centuries back maybe 90% of world population was self employed. It was not the greatest risk but simply a way of life.
Being a subsistence farmer was incredibly risky. One bad year and your whole family starves to death. People only did that because there was no alternative. As soon as the industrial revolution came, people left their "self employment" en masse to work at a company.
Companies are not required, but social safety nets are hugely important for modern systems of production.