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Covid 19

covid 19 and small businesses: strategies for survival and recovery

By Amelia Hernandez

Published: 07 Mar 2025

The Ghost of 2020: A Personal Reflection

Remember 2020? Feels like a lifetime ago, right? The world kinda, sorta, maybe imploded. I was running a small bakery then, a little place called 'Crumbs & Co.', and let me tell you, those early days of the pandemic were...intense. One minute I was bustling, baking custom cakes for weddings and birthdays, next minute, crickets. Empty streets. Empty order book. It was terrifying. Seriously, I nearly lost it. My tiny business, my little dream... it was all on the line. And I know I wasn't alone. So many small businesses faced the same brutal reality. This post is for them—and for anyone who's ever felt the cold breath of uncertainty on their neck.

small bakery interior, deserted street | Image: Supplied

The Hammer Blow: COVID-19's Impact on Small Businesses

The initial lockdowns were devastating. Overnight, restaurants were forced to close, shops shuttered their doors, and service-based businesses came to a grinding halt. Many didn't have the resources to pivot to online sales or delivery. It wasn't just about the immediate loss of income; it was the uncertainty. Would customers return? Would there even be a business left to return to? The stress was immense—I saw it in my own sleepless nights, and in the worried faces of fellow business owners. I remember one restaurant owner, a lovely old lady who had run her family establishment for 30 years, bursting into tears while trying to adjust her ordering system to accommodate only take-outs. We were all in the same boat, desperately bailing out water.

closed shop storefront with sign, worried business owner | Image: Supplied

Survival Strategies: Adapting and Innovating

But here's the thing about small business owners: we're resilient. Incredibly so. Faced with near-extinction, many found creative ways to survive. Some shifted entirely to online orders and delivery services using platforms like Uber Eats and DoorDash. Others got creative with their offerings—think 'quarantine comfort food' boxes, online baking classes, virtual consultations. I started offering virtual baking workshops over Zoom and that was a lifesaver! It was about finding ways to keep connecting with my customers, even if it was through a screen.

online order on laptop, zoom baking class | Image: Supplied

The Government Lifeline: PPP Loans and Other Assistance

The government also stepped in with programs like the Paycheck Protection Program (PPP). These loans were designed to provide a financial lifeline to small businesses, helping them cover payroll and other expenses during the crisis. But navigating the application process could be a nightmare—I personally spent weeks filled with anxiety while doing the applications. But, it was still a helpful tool that saved many businesses like mine from closure. However, the efficacy of these programs was not the same for everyone; some businesses didn't qualify, while others found the process too cumbersome or confusing. And let’s be honest, the red tape was often just awful. Its success was uneven, but it certainly helped many afloat during the most difficult period. I know several friends who couldn't get the help they needed, despite qualifying for it. Bureaucracy, ugh!

government aid application form, frustrated business owner | Image: Supplied

Rebuilding and Recovering: Lessons Learned and Future Planning

Even as restrictions eased, the road to recovery wasn't easy. Consumer confidence remained fragile, and many businesses struggled to regain their pre-pandemic levels of revenue. I'm still working to rebuild Crumbs & Co. back to the way it was before the pandemic. It's a slow process, but I'm committed to ensuring that we will never experience something like that again. One crucial lesson I learned? Diversification. Don't put all your eggs in one basket. Having multiple income streams—whether it's online sales, wholesale partnerships, or other ventures—can protect your business from future shocks. I'm planning to start a small side business selling our baking supplies online, in case of another such incident. Its a lesson learned the hard way.

business owner planning future strategies, diverse product offerings | Image: Supplied

The Power of Community: Supporting Local Businesses

As consumers, we have a vital role to play in the recovery of small businesses. Supporting local businesses isn't just about buying their products or services; it's about investing in our communities and fostering economic growth. When we choose local, we’re not just supporting a business—we’re supporting families, livelihoods, and the unique character of our towns and cities. Remember that cute little cafe down the road? It's the local businesses that make our neighbourhoods thrive! Make the conscious effort to support your local businesses; you'll feel good about it, and the local businesses will appreciate it very much!