I don't think this is really the right interpretation. A lot of businesses really are over regulated, and a lot of people have owned, worked for, or known someone who involved with one of these businesses.
Maybe over regulated is the wrong phrase as I'm not really passing judgment on the soundness of the regulations. It's just that people who run truly small businesses can deal with a lot of headaches with their local municipalities, and because they're genuinely small businesses they don't really have the staff to deal with it.
One of the poll questions explicitly mentions the federal government, but I don't think people distinguish that much.
