Relative of mine is Swiss. They produce cookies for the US market. Every few years, an FDA-adjacent regulator comes to Switzerland, inspects the place in person, expects dinner, entertainment and whatnot, gives his signature and off he goes. My relative says that no other country they export to overseas is this far-reaching (not to say over-reaching) regulatory-wise.
No (what I’m fairly sure is being referred to is that) there are (very recent) significant additional barriers to trade between EU member states, which disproportionately impact small businesses.
I don't think so. The most natural reading of OP's post is that they are outside Europe. You wouldn't say "I can't imagine how much this affects small business in Europe" if you were yourself running a small business in Europe.
Unless you were in Europe and didn't run a small business
Ok, but their post talks about making a product in small volumes. It doesn't explicitly say that it's a small business, but together with the first person singular language, that's definitely the impression given.