You mean they are sole proprietors? How would socialism mean individuals selling goods and services and earning a profit?
Anytime someone or a group of people produce a commodity, value is created. The difference between socialism and capitalism is how the surplus value is distributed. In capitalism that surplus value goes to the capitalist. In socialism that surplus value is distributed among the producers of the commodity.
You still haven't explained who is producing the commodity. If it's not the government and it's not a "capitalist," then who is it? Why would anyone produce a commodity if they stand to gain nothing from it? How do they produce it? Where does the plant and machinery come from?
I already told you it's the people. The capitalist does nothing but provide the capital. State chartered banks could fill that role.
"The people" of Egypt built the pyramids, but they were all slaves. You're weaseling. You have no clue how your system is going to work without business owners or government, so you dodge and weave when asked to explain it.
You're a typical socialist who wants to tear down the existing system but doesn't have a clue about what to replace it with.