Its always regulations and tax laws that make life incredibly hard for small businesses. Big ones have the lawyers and figure it out, but the small ones are eventually forced out of business.
On the other hand people wonder why working conditions have become so bad and profits flow almost completely to the top. If people can no longer work self-employed in a small family business, then they have to accept employed work no matter what.
Essentially the government is making it illegal to earn money without being employed.