I remember discussing distributism and subsidiarity in a high school theology class many years ago. The concept has much to recommend it in principle, but I see some practical difficulties with it.
There are some things we need that require large pools of capital to produce. Things Iike attack submarines or Marvel Comics movies. Also, not everyone is capable of succeeding in small family businesses or cooperatives. What happens when they run through their capital? It would seem we’d need a vast state apparatus for keeping the failures above a certain level and the successes below a certain level.