This is a great point that we don't hear nearly enough. The internet has made it possible for millions of people to start their own business without having to pay the overhead required for a B&M location. My wife has a sewing business the operates out of our living room. I've had an online collectibles business since 1986. Lots of people make and sell jewelry, clothing, soap, candles, toys, and all sorts of other products. If the business is big enough, maybe they rent a small commercial space but the transactions themselves are still 100% online.
And there are some great hybrid options cropping up too. Around us, there is a store in a downtown business district that has weekly "pop up" shops. Basically, for $20/day you can rent a space to sell your wares. My wife has done it a couple of times. It lets small businesses get public exposure without the huge financial commitment of renting their own store. If malls want to survive, maybe they should do more of this. There was a mall in the Orlando area that went this route and created a bunch of mini stores for local artists, crafters, and small businesses. There were still a few traditional stores and food locations, but the bulk of it was the small businesses.