P.E.I. businesses feeling extra strain
As public health measures limit consumer activity, many small business owners are feeling extra stressed.
Matthew Jelley has worked in the Cavendish tourism industry for 30 years, the last 15 as the owner of Sandspit,
Shining Waters Family Fun Park and Mariner’s Cove boardwalk.
“My identity and all my work for my life has been poured into this and just immediately, you see the value of your business evaporate,” said Jelley. “We are supportive and appreciative of the bubble decision but it doesn’t mean tourism’s secure.”
Jelley anticipates it will take years to recover from the pandemic’s financial hit. No one he’s spoken with expects to turn a profit this summer.
“I’m younger, and I’ll have a chance to claw back and fight through it, but there were operators who were on the verge of retirement and were kind of planning one more year or whatever it might be.
“That ‘one more year’ may now be five more years or ten more years to get their business back into position - and
that’s going to have an impact on their mental health, their family life and obviously the finances as well. So there’s lots of challenges. And again, something that we’re all working through together,” said Jelley.
This year’s challenges have him feeling deflated and he’s not the only one.
He’s part of a group of CEOs that meet online each Thursday.
“It’s evident that some weeks, some of us are optimistic and some are pessimistic and we tend to pull each other kind of towards the middle. I think that’s helpful,” said Jelley.
Even with the group’s support and many successful seasons behind him, Jelley’s energy ran low on Friday, June 12, in particular.
“For me, that was the day I hit my wall. The frustration of not being able to plan, some of the inconsistencies in guidelines, how different provinces are treating different industries, my staff wanting answers that I can’t give them because the information just isn’t available to me,” he said, adding just the day before he had been helping a fellow entrepreneur through a similar tough spot.
“Everybody’s been so busy trying to make these decisions. It’s hit everybody differently and at different times. I think, much like an iceberg, 90 per cent of it is under the surface.”
Cyclist Cynthia King has rolled through tough spots before. This summer has her changing directions.
King has been running P.E.I. Cycling Tours since 2016, but due to travel restrictions, she’s suspended all tours scheduled before Aug. 1 and is still planning what comes next.
The pandemic has forced her to pivot to provide a different kind of cycling support. She’s now offering treats, hot and cold drinks and bike repairs at Bits and Bikes.
The kiosk will be at under a tent at the Mark Arendz Provincial Park in Brookvale at the Nordic site for weekends all summer.
“It’s sounds a little corny, but I really feel like we’re in this together, as small businesses,” said King.
Small businesses are often financed in the owner’s personal credit, leaving them on the hook if the business is in trouble.
Financial stress impacts all aspects of life, from family to job performance, says John Eisner at the Credit Counselling Services of Atlantic Canada.
“Anyone who’s never had money troubles, they wouldn’t understand what goes on,” said Eisner.
he says right now people are focused on the bare necessities.
“I don’t want people to be scared, I want people to be thinking, ‘Boys, this is the time I better pull in my belt. I better make sure I’m not spending more than I need to’,” said Eisner.
That’s the case at businesses he’s spoken to — they’re being cautious.
Services like consolidation loans may be harder to come by as banks refuse to take on debts from outside institutions, said Eisner.
“Banks, financial institutions are assessing their financial risk. The capital they have available is for their customers only,” he said.
The firm’s own business is down about 70 per cent, Eisner says.
“It’s going to get a little tougher before it gets better.”