Edit: This question attracted way more interest than I hoped for! I will need some time to go through the comments in the next days, thanks for your efforts everyone. One thing I could grasp from the answers already - it seems to be complicated. There is no one fits all answer.
Under capitalism, it seems companies always need to grow bigger. Why can’t they just say, okay, we have 100 employees and produce a nice product for a specific market and that’s fine?
Or is this only a US megacorp thing where they need to grow to satisfy their shareholders?
Let’s ignore that most of the times the small companies get bought by the large ones.
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In the strictest definition, they don’t.
Capitalism is minimally fulfilled when a business sells something for a profit and reinvests the profit (now capital) in the business. Hence the term. It doesn’t have to grow the business, make new products, or do anything beyond maintenance of its processes, be that fixing or updating machinery or training employees. A single person selling tomatoes in a market in Madagascar that fixes of their tomato table with profits is perfectly capitalist.
Expecting constant growth is not a requirement of anything.
A farmer selling their produce is not necessarily a capitalist. A farmer toiling on their own field sells the fruit of their own labor, so to speak. One step up are what Marx calls “Little Masters”: They own and work their means of production, but sometimes have employees such as farmhands or apprentices (Think companies where the owner still works in the workshop). Actual capitalists are detached from the production process: They no longer work, but simply own the so-called means of production and exploit others by buying their labor force for less than their produced result is worth.
If we are going by the original definition of the word, it is. The farmer here is growing produce to sell it in exchange for money; they are not sharing it with their community, bartering with it, growing it to eat themselves, or giving it to their liege lord.
I’m not sure why people always insist if money is involved that it’s capitalism. Money is an abstract form of trade. No one is suggesting that trade will cease to exists in a world without capitalism.
It’s not about money, it’s about private ownership of capital. https://en.wiktionary.org/wiki/capitalism
Well, if you assume the farmer excludes others from using the means of production i.e. the fields, then yes you can argue that they are acting as capitalist. But you have to make the distinction between private and personal ownership: Private ownership of the land and personal ownership of the produce. The former is what communists reject. The latter is fine in their books.
What resources would you recommend to someone wanting to learn about this?
I.e. the TV channel Arte, which is a cooperation of French and German state media has a multipart documentary called Work, Salary, Profit that touches on a lot of fundamentals.
Of course there is always the option just to straight up read the original works by Marx, Smith and so on, but they are not for the feint of heart.
