Hi Chris,
No, you do not need to get your degree homologado. That is for people who want to take the civil servant exam to be an English teacher in a public schoo,l as well as for the people that you have mentioned in your post.
As far as working in a small language school is concerned, many of them will just accept your student visa and still pay you under the table. Some will want you to have you work papers in order. Just send your CV, with your NIE in bold print so that they can see that you are here legally, and see what happens.
Suerte,
Shawn