Take an example of GM. It was losing money and had to be bailed out. Instead, they should have been allowed to go broke. That is how capitalism works. Then, other more efficient car producers would take over GM facilities and workers. Car demand was not going to go away because GM went bankrupt. The more efficient producers of cars would be eager to expand and meet the demand.
That’s not a proper example. You are conflating businesses with small margins of profitability with businesses that are losing money. The two are not synonymous.
Neither is it synonymous to say they are inefficient. There are entire industries where even with peak efficiency, the margin of profitability is relatively low. If the issue I raised is not problematic, then you should be able to show why that is without using these kinds of bad analogies.