I walked into a liquor store without a mask. The guy comes out from the back room and says "you got a mask?" in a demanding way. I say "you want my business, or not?", and he says "yeah..." in a defeated sounding tone. I get some whiskey and say thanks, and that was it.
Small businesses should be ignoring this nonsense, but maybe he watches a little too much TV.
A lot of small business owners are simply afraid. They are afraid of losing their license and income, and would rather just comply than than to stand up to tyranny.
Fear will be everyone's demise.