Is it possible to make money from providing small business software free to consumers? If so, how?

I was thinking of offering some software free-of-charge to small businesses, but was unsure of how to monetize it. What kind of options are out there to capitalize on it other than selling the software outright?

Position the software in hopes of taking up some of the market to get bought out by a larger company? Consult and make custom solutions for clients by and large? Donations?

No, you can not give something away for free and expect money to fall from the sky. Business doesn't work that way (maybe faith).

Why do you want to give it away? If it is any good is has to be worth something or no one would want it even if it were free. Most business owners will look at your product as a gimmick is you give it away and then demand money for customer support a.k.a. "consultation". You are better off asking a competitive price then marketing free customer support and custom solution for their company.

You don't "take up the market" if you are not taking dollars out of the larger companies pocketbook. Any a larger company is not going to "buy out" a company that doesn't make any profit because it doesn't charge for its product. That's just silly. The larger company would have the resources to simply study your product and make something better.

Businesses do not solicit donations, only non-profit organisations.