As a small business owner I have the freedom to regulate customers and employees based along behavioral lines, not discriminate based on what they are.
For example, I can fire an employee for poor work performance or disruptive behavior, not because they are a woman or Asian.
Why is this? It comes down to that in the United States many groups have been discriminated and persecuted based simply on what they are. Freedom of business would be fine in a society where it is not really needed, but we know how racism, ageism, sexism, etc. do exist.
For example, there have been experiments where identical resumes are sent out and simply the name at the header affects the number of job offers. You want a gender neutral or male name, preferably of anglo origin (Charles, Henry, etc.). May notice many east asians name their children European names because they know how the system works.
To me, when I hear this argument come up it is often the people who have never been discriminated against or lack the fear of it that champion freedom. This kind of society favors those in power and majorities and makes it harder for those outside these groups to achieve the same level of success.
So, yes, it is unfortunately necessary that businesses be monitored by the state to avoid creating a caste like society where the powerful majority bullies the weaker minorities. We are aware that this system is still within living memory? It is not that crazy to think parts of the country would fall back into those bad habits.
