‘The longer we go, the more we bleed money’: Entrepreneurs on their struggles amid the pandemic

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‘The longer we go, the more we bleed money’: Entrepreneurs on their struggles amid the pandemic GlobeSmallBiz

Designer Véronique Miljkovitch, seen in her Montreal studio on April 3, 2020, expects revenue for the season to drop by more than half what she expected.Ottawa began announcing relief packages for small businesses affected by the novel coronavirus nearly three weeks ago. Few entrepreneurs were happy with the initial 10-per-cent wage subsidy for employees, which would not cover the losses of companies who’d shut their doors completely for fear of spreading the virus.

Gitu Duggal and her husband Harry Mand had staved off the risk of spreading the novel coronavirus but at great cost. After paying employees for the work they could do in March, they faced a stack of monthly bills worth more than $10,000, including rent – which they simply didn’t have the money to pay.

“We don’t want to take any more debt onto the business, because eventually you have to pay it off,” she says.Kiril Mantchev cuts a pattern at Véronique Miljkovitch's design studio in Montreal on April 3, 2020.Véronique Miljkovitch’s 2,000-square-foot studio on Montreal’s Rue Sainte-Catherine Ouest is overflowing with boxes filled with her Spring-Summer 2020 womenswear collection. Lots of prints. Lots of yellows.

Her two studio employees aren’t working; they’ve applied for the Canada Emergency Response Benefit. She’s hesitant to jump on the 75-per-cent federal wage subsidy – which won’t roll out for at least six weeks – because she doesn’t know how much longer her business will be around. Ms. Nicholson is losing about $4,500 a month from the guest house, and between $4,000 and $7,000 from shutting down the wellness centre. “I don’t know if I have the heart anymore to be self-employed,” Ms. Nicholson says.

As he sees it, that means a comparable business that did nothing to keep its employees working and customers happy would be rewarded for doing so, while Dageraad bleeds cash.“It’s all or nothing,” Mr. Coli says. “Either you’re at minus-30 per cent and you get a huge amount of help, or you’re at minus-29 per cent, and you get nothing at all.”

Joel runs Breathe Clean with five family members, including his brother Ryan, mother Michelle and father Cleve. Joel and Ryan launched it in 2016 after noticing how few services there were to clean and disinfect temperature-regulating heat pumps, whose fan blades can accumulate dirt and mould. Breathe Clean tries to be as local as possible – nearby manufacturers made their proprietary cleaning equipment, and they employ a Halifax-area call centre to handle inbound calls.

 

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GlobeSmallBiz i'm getting some sense of schadenfreude from this. in my entire working life, i have never experienced something like employer loyalty. every time things look little rough, i was always the first one given the axe. so, i see employers struggling now and laugh.

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