I say this with no ill will.
BHG is dead because I couldn't go on any more, and I offered the reigns to anyone that wanted them and then... nothing happened. I tried earlier in the year to cater to that style of play, and I did everything I could, but I alone wasn't enough. I would start threads, get initial replies, I would reply, then the thread died. Repeat. I would find threads to join, brings some friends along, and the Bounties generally didn't participate, and our end of the thread died there.
It was so bad I can only think of one successful Bounty thread during my tenure as Faction Owner.
Though I haven't taken any steps yet because my school life has completely absorbed my brain, I have, for the past few weeks now, contemplated starting fresh with an official Subfaction of Darkwire for a Guild organization that caters to Bounty Hunters that are already present in Darkwire.
But that isn't minor factions and what you're talking about is it?
Minor Factions have zero visibility compared to the in-your-face nature of Major Factions, and in my experience the only successfully large minor factions are the ones that are attached to a Major Faction (you know, Subfactions), or minor factions that are gearing up to go Major.
Personally, I don't really see it as a bad thing, other than it makes running a successful Minor faction.... extremely time consuming and hard to run. In comparison, once a Major Faction is successfully set up, it can almost run itself once enough people are involved. Until interest fades, or changes, and the leadership doesn't adapt to it or put in extra effort to reinvigorate or just accepts that it is time for it die.
The reason why Minor Factions don't get big like Major Factions is because Major Factions generally absorb the best leaders, leaving few and far between those exceptional minor factions with great leaders and a good following behind them.
Or maybe I'm totally wrong, and there are hidden minor factions as large as contemporary Major Factions I've never heard of.