Making the process inefficient raises the floor of the minimum viable business. And, more importantly, it raises the floor for who can start one so that you don't get people closing up shop and being bankrupt when something bad happens.
The institutions designing these processes are chock f-ing full of people of questionable intentions. You hear "affordable prices" they hear "trashy clientele". You hear "thin margins" and they hear "can't afford to be taxed more than they currently are". You hear "small family owned business" and they hear "people who have no other assets we can threaten to lien in the case of a dispute". And just to be clear, these people aren't evil (well their actions are, but they're done with good intentions). It's just that the regulatory agencies they work for are set up in such a way that the 2nd and 3rd order "nice to push for but not technically within the scope of what we do here" opinions of all the people involved seep through. At its root this is a diversity problem. There aren't enough Ron Swansons and people who've been f-ed by government bureaucracies working for government bureaucracies so you get bureaucracies doing things that are completely and totally tone deaf.
Edit: And before anyone puts any more words in my mouth, they have no intention of making the process onerous and exclusionary. They have just settled into that equilibrium over the centuries because that is the local maximum their crude "did our last round of changes do what we wanted or not" hill climbing algorithm has found.