Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Nickey Miller, left, and Josie Rudderham, co-owners of Cake and Loaf in Hamilton, Ont., outside of their Dundurn Street South storefront location, Oct. 5, 2020.

Tara Walton/The Canadian Press

Having 12 cases of mini eggs on hand sounds like the makings of a grandiose Easter hunt or the ultimate way to soothe a sweet tooth, but for Josie Rudderham, the confections have put her in quite the crunch.

“We have joked about pouring them into a bathtub and doing a photo shoot because there is enough to do that, but really they are part of the cycle of investing in ingredients to make a lot of sales that didn’t happen,” said Rudderham, the co-owner of Cake and Loaf in Hamilton, Ont.

She spent the first months of the COVID-19 pandemic closing one of her two bakeries, taking on debt, laying off workers during the busy Easter season and offering curbside pickup, but the boxes remain. Worse still, she believes her business won’t fully recover for another decade.

Story continues below advertisement

The projections are quite similar for most of the country’s 1.14 million small businesses still lamenting empty dining rooms, stores and cash registers, and fretting about how they can rebound from the pandemic’s economic impacts.

The Canadian Federation of Independent Business says a survey of its 110,000 members shows only 26 per cent of small businesses are reporting normal sales volumes, leaving the remainder at risk of insolvency.

Those that do survive aren’t likely to emerge from the pandemic unscathed. The CFIB estimated in June, before Canadian COVID-19 infections began rising again, that small businesses will incur $117 billion in debt that could take more than a year to pay off.

“The majority of them have said that they are losing money every day that they are open and I guess the question is how much longer can that happen,” said CFIB president Dan Kelly.

Reversing the trend will take a return of sales at a time when many businesses can’t get COVID-friendly insurance, patio season is coming to an end, offices are showing no signs of reopening and Ontario and Quebec are plunging into second waves.

CFIB wants the government to help small business owners recover by suspending evictions and property seizures for shuttered businesses and providing immediate financial support to cover ongoing costs like rent and taxes.

Sheila Block, a senior economist with the Canadian Centre for Policy Alternatives, also believes public coffers have a role to play in the rebound, but warned government relief isn’t a cure-all.

Story continues below advertisement

“The only thing that will ensure that small businesses can come back to life is the public health situation and that is going to take some time,” she said.

While the wait continues for a COVID-19 vaccine, Kendall Barber is keen on getting Poppy Barley, the Edmonton-based footwear company she co-owns with her sister, back on its feet.

When COVID-19 struck, the pair temporarily shut down their two Alberta stores, laid off some workers and put plans for pop-ups across the country on hold.

“All of our factories closed, so we had no ability to get products, and even developing our fall collection was hard because tanneries and facilities were closed and located in countries that are much harder hit by COVID-19 than we have been here in Canada,” said Kendall.

Poppy Barley reverted to its roots in e-commerce. Fans of the brand made purchases online, but not enough to make up for what was lost from closures.

Recovery, said Barber, will now rely on meeting the customer where they are.

Story continues below advertisement

For Poppy Barley, that means slowly bringing back pop-ups in 2021 and shifting to meet new consumer needs with fewer high heels, footwear made from ultra soft materials that don’t need breaking in and a plant-based collection.

For many small businesses, which have grappled with layoffs, rent problems and mounting bills, recovery will also mean leaning on customers.

“The simple answer is shop, buy their food, spend your money with them,” said Barber.

“On the darkest days getting a great e-mail from someone saying, ‘Keep going. I love what you’re doing’ has also been really meaningful.”

Changing business models will also be a big piece of recovering, said Rudderham.

“I don’t know that I want to get back to the way things used to be, to be perfectly honest,” she said. “I’m not sure that was actually healthy for anyone.”

Story continues below advertisement

Before the pandemic, her business took pre-orders and opened six days a week for walk-in purchases, requiring bakers to speculate on what and how much to make each day.

Busy seasons or large orders would sometimes mean overnight shifts to have product ready by morning.

Rudderham envisions a switch where the business could focus primarily on pre-orders and curbside pickup, giving workers steady hours and eliminating the need to employ counter staff to await drop-in customers.

The economics, she said, would allow the business to focus on larger orders and supplying other retailers like a nearby co-op, instead of hoping for people to walk in for a coffee or muffin.

Rudderham isn’t sure how many of those ideas will be implemented, but insists deep thought is key to any recovery.

“This is a chance for everybody to reassess what is really important about the way we live our lives and how we run our businesses because the normal that existed before the pandemic is not a normal that was working for everyone.”

Story continues below advertisement

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies