Not every business has to be viable for a startup. I'd rather a company that can't afford a single lawyer not have access to my personal information. If that means pricing them out of it through regulation, then so be it.
Regulation exists to protect citizens at scale. “Don’t use the business” isn’t how we’ve built society, rightfully so. If you believe the regulation to be onerous, fix it.
One is not entitled to do whatever one wants to generate a profit, at the detriment to uneducated or unsophisticated citizens, or society as a whole.
My parent was not doing that, and instead flippantly remarked that you should just store data correctly and everything is fine.
My point is that it is important to consider the implications of government action, because they are always numerous.