I guess some people have never heard of running a unregulated fly-by-night cash & carry business that ignores all regulations and pays no taxes, hardly a rare idea. It's an increasingly popular concept when the government makes start up costs, licenses and taxes way too high to go about these things legitimately. Get caught, pay a fine and keep on trucking.
Case in point, very tough to afford to build a home in Hawaii without hiring at least some folks who aren't operating as legal, bonded and licensed contractors for their trade.
Hanging drywall or giving BJs aren't particularly skilled labor, you can always find a bargain if you pay cash.
Are you telling me that the government "regulating" businesses includes mandating
healthcare
retirement
testing for diseases
unemployment insurance
taxes (both business and personal income)
advertising (what can and can't be included)
tax credits for daycare for workers
liability insurance (who pays for treatment WHEN a client contracts something?)
etc.
etc.
That means (for example) what was a $200 service could easily cost 2 to 3 times that just to cover all the additional costs.
That's going to (1) drive customers away from the "regulated" businesses, and (2) increase demand for "under the table" service providers.
No different than the child care and barber regulations. People do babysitting and haircuts/perms in their homes to bypass the regulations and charge much less for their services. True that the customer is taking a chance, but often the lower cost makes it worth the gamble to many.