How can small businesses be protected against the "machine"?

When I began my small business, my thoughts were of bringing the arts to Brooklyn. I never imagined the legal fights that I would go through, or the political nature of the neighborhoods in New York. I am ashamed to say, that this broke me. And that I will never again have the stomach to pursue that interest ever again.
Perhaps this is a New York issue, but I doubt it. Small businesses, especially those that promote live performance have been under siege and in this economy it makes no sense to me. I employed from 3-5 people every day for four years. Why can't someone in politics or an advocacy group protect those of us who want to have a venue with live music or poetry slams?  What has happened to New York where there is no room for live art? No matter that we have sound proofed.
 It makes me incredibly sad that the New York I grew up with, is no longer. That everyone feels that they can complain about the most inconsequential things. Like the lady who was connected with the DEP, who didn't like me personally, and pulled strings so that they were on our ass for everything. We got a fine for an acoustic guitarist playing on a Tuesday. It was absolutely insane.
 I can only speak about New York, but I would be interested in knowing if others have had the same experience. Have you noticed that live music venues, just don't exist anymore unless they are franchised? What does this mean for music in the city? Why is there no protection for musicians, artists, poets and other performers? It's a thought worth pondering.