[Mirioron]

You will never get anywhere close to mitigating the harm that regulation does to innovation through something like that. Approach this from the perspective of UX design. The more barriers a user has to overcome the less likely they are to actually try the product. In this case the user would be a small entrepreneur trying something small. But a lot of businesses start out as something small. If they work then they grow, if they don't they go back to the drawing board. If you put barriers on the way of these people they often won't even try.

That doesn't mean it's impossible to start a business, but it does mean you'll get a lot less of them. A lot less of them also means less successful ones and less jobs.