Well, it depends on what your small business website and blog are about and lets be clear here, you should have a blog page, it is a must have. There is no doubt that your Home/Front/Landing page should be the place where you are promoting your business, products and services. If your web site is a personal or non-business site then the it all largely comes down to personal choice and what you are trying to acheive.
The thing to remember is that your Home page is the the place where most visitors will land when they get to your web site and it is here that you need to entice your visitor to stay and look around. For this reason, you need to make sure that your Home page is focused on your products and services.
In my case, because I also have a photography website, I have decided that the best place for my blog is on the home page as my blog is always about my photography, services and events that I cover, in other words, my blog is about my business.
If your business website is focused on promoting and selling a range of products then your Home page may be better focussed on those products with links to other pages other wise a Home page blog may result in reduced conversion rates because many visitors will just move on before they really understand what your business is about. Your front page need to be appealing to the sort of visitors that you are trying to attract.