Actually, "microsocialism" generally works rather well...
...but only because in very small groups, people are all held tightly accountable to each other. A "family" is a perfect example of microsocialism at work. As long as there is mutual accountability, "communes" work relatively well. kibbutzim in Israel works relatively well, mainly because of accountability combined with a religious mandate overlay.
The problem with socialism is that as the group gets bigger and bigger, accountability between all citizens breaks down. It's not possible to be accountable to everyone if you aren't close to everyone, or even know them personally.