This is incorrect.
Lots of people live without things others observe they need. Doesn't make going without a good idea.
> Companies that actually need SSO are the ones that have internal or external compliance requirements...
This logic is backwards.
Why do you think SSO is a "requirement" that security certifications or compliance policies look for? Why did that come to be? Who does SSO benefit? Are those personas relevant for only large companies or small ones too?
Do beginning drivers not “need” seatbelts or brakes? Or are these devices only needed to avoid tickets and pass inspection?
If anything, small companies need SSO more than any others - those companies usually outsource a lot (SaaS vs a dedicated hire), managing credentials is annoying.