Thursday, December 22, 2011

Day 10: Still Waiting

Wish 10: Survival of Small Businesses

Three years ago, in the Christmas of 2008, we had a white Christmas in Vancouver! It was exciting for the kids. Our eldest went skiing. The middle boy went tobogganing with friends just a block away. Our youngest made snowmen in the backyard, while the dog was trying to get through snow barriers.

My wife and I didn't really enjoy that snow. It was too much! It snowed heavily four times in ten days. And the very next day, that white snow would turn to cold mud. After Chrismas Eve dinner, the lights went out because power lines went down. We slept in a cold house that night. Every morning, we had to dig out the car. And every evening we had to find parking up to three blocks away from the house.

There was another reason we couldn't enjoy the snow. We were working at our fastfood restaurant in the mall. For the entire month of December, seven days a week, the mall hours were extended. We had to be at the stall for twelve hours a day - at least I did. It was difficult to determine demand for our cuisine two months after markets crashed in the USA. And it was hard to find people who can work the extra hours.

So, everyday up to the 24th, I went to the restaurant at 9:00am and closed the shop at 9:00pm or later. My wife would finish her day job and work with me in the evenings and weekends. I would hire and train people so that I could continue teaching and consulting. It was tiring, and we still had low sales that December because of the snowstorms.

We can't blame Mother Nature for our situation. It is part of the perils of working for yourself (or in this case, for the franchise company!). We asked the other stores, "how are you doing?" And all of them, without exception, said they were doing well. They were lying, of course. Nobody wants to admit that they are suffering, more so if they are trying to sell a struggling business. It was the big secret everybody knew: small businesses were in pain and they couldn't reveal that they were.

That was three years ago. We thought, "2009 will be better", and it was worse. We thought, "I'm writing off 2009 and can't wait for 2010." But it only got worse. The normal sales levels were 50% of what they were before the recession... and dropping. We gave it up in 2010 after the Harmonized Sales Tax made sales drop another 10%.  By the end of 2011, about 1000 restaurants will have closed down in Vancouver alone.

The other day, I went back to the same mall. It was evening and I remembered that the stores would be open late. I went to the Deli store for more Black Forest Ham. I was surprised to find the owner, and not one of his employees, tending the store, alone. A courteous Middle Eastern man, he thanked me for my business and proceeded to close early for the evening. As I turned, the food court was completely empty. It reminded me of those long evenings waiting for no one to come for dinner.

Small businesses are the lifeblood of any neighbourhood. Whole cities in the United States begin to look like ghost towns, as soon as businesses close down. In Canada, small businesses are the employers who give new immigrants a chance when the big companies say they want Canadian experience. They are also the most regulated for their size. It is difficult for a small business to do well with countless barriers and threats created by big companies, government, regulatory bodies, competition, suppliers and the economic climate.

Many entrepreneurs are throwing their savings into keeping their businesses alive in the hope that economic recovery is around the corner. Three years in, that recovery is still elusive... like a target that keeps moving backwards. I have already been wishing for that recovery for years.

So my wish is for today is easing regulation and reducing threats to small businesses. We need them to keep our neighbourhoods economically fuelled. I know there will be more entrepreneurs in the future, but I pray that those who have already started their helpful businesses will survive this economic slowdown.

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