Many of the 'losses' you cite are government-imposed.  The rest make huge assumptions about the community and customers' willingness to support this business, as well as the motivations of financial backers -- if any.  The only objective point you make is that the *government* will impose its own standards on what should be a decision for the individual business owner, which I think is Chuck's point.

If the business would suffer from all of the maladies you describe -- no financial backing and no support from the market or community -- then it will wither and die on the vine.  If it will succeed because people either support the business' viewpoint or don't care one way or the other and just love quality baked goods, then it should have that opportunity as well.