If a business does not have the standards of the community they are in than that community can take their business elsewhere and the business will close or leave. I do not need governement telling me what I can and cannot do, with in reason. That is why I support gay marriage, pot legalization, right to refuse services as a private entity...
In a simplistic world, you'd absolutely have a point. But the world ain't black and white. You're dealing with a mighty fine slippery slope signing off on the idea that private business should be allowed to discriminate anyway they want - especially with the push to privatize our healthcare, education and mail services.
Case in point: You live in a town of 10,000 people. The nearest hospital is a privately run center that receives minimal government funding. You're black, or Hispanic, or gay, and you dial 911, which is now run through a private corporation, and ask for an ambulance because your wife is having a massive heart attack. Under your rationale, not only can the private 911 service refuse to do anything for you, because they have the right to deny services to anyone they want (it should be legal), if you somehow got through, and they sent a private ambulance to pick you up, they too could deny services. Moreover, so could the private hospital - since it would be perfectly legal to discriminate, even if you believe it wrong. I mean, all they would have to do is go to another hospital that would accept them, right?
I know you're thinking this sounds extremely unlikely - but how unlikely was it for blacks in the 60s era south? We're trying to privatize prisons, fire services and even police services - don't you see the potential for conflict if we accept the idea that a private entity can discriminate based on whatever they want?
A private mail service would be under no obligation to deliver mail to a black family if they really didn't want to. A private school could deny a child because he was black if they wanted to. A hospital could refuse to treat a HIV patient, regardless of their condition, because discrimination in the private entity should be absolutely legal.
It's deeper than just saying your stance is that of just private entities when so many institutions are being privatized today. Where do you draw the line? Is it okay for a private business to refuse to sit a black family - but it's not okay for a private ambulance service to refuse to serve a dying black person? If you accept one, you have to accept the other - that's how it works.