The biggest threat to business is bigger business, not smaller.
For example...the biggest threat to local bakeries is Sam's Club...not the home baker down the street.
Not in the baking business--a handful of Suzy Homemakers could do some serious damage to existing businesses.
Hey, watch it! (I'm "Cakes by Suzy" haha)
I guess it would depend on the area.
We have loads upon loads of home bakers here....not sure who is licensed and who is not. But then we have millions (literally) of people within a 30 mile span, too.
In a rural area I can see how it would be more damaging. In our area...the bulk places like Sam's or the bulk bakeries do more damage.