Business Resiliency in Western Nova Scotia: Where Businesses Are Most Exposed

This is the second in a four-part series on the Western Region Business Resiliency Index. Article 1 shared the big picture from the Western REN Business Resiliency Survey. Western Nova Scotia businesses scored 1.65 out of 3.00 on the overall Index. This score placed the region in the moderate range.

What happens when one person is away?

A key employee calls in sick. The owner is away for several weeks. A storm closes the roads. The internet stops working.

For many small businesses, one absence or one outage can throw a wrench into the whole operation. A team member may need to take on an unfamiliar task. Customers may wait longer for service. The owner may need to step in when they need time away.

Our Resiliency Index shows two clear areas of exposure. Businesses need more depth in their teams. They also need better plans for storms, outages and service gaps.

Workforce: too much depends on too few people

Workforce resiliency scored 1.4 out of 3.00. This was the lowest score among the six pillars in the Index.

Almost one-third of respondents said they find it difficult or very difficult to recruit the staff they need. Only 9 percent said hiring is easy.

And hiring is only part of the challenge. Many businesses also lack backup when a staff member is away. Only 23.64 percent of respondents said most key roles have coverage. A further 45.45 percent reported partial cross-training. Another 9.09 percent said most roles depend completely on one person.

These gaps can affect a business quickly. An employee gets sick, takes vacation or leaves the business. When that happens, a small team may struggle to maintain normal service.

The owner question

What would happen if the owner or main decision-maker could not work for three months?

For 43.64 percent of respondents, operations would largely stop. Another 36.36 percent said the business could continue with major challenges. Only 20 percent said the business could continue with little disruption.

Owners often carry many roles. They may manage sales, finances, staffing, suppliers and daily decisions. They may also hold the passwords, key contacts and knowledge that keeps everything moving.

That knowledge helps the business run. It also creates a risk when one person holds too much of it.

Illness, burnout or a family emergency can affect any owner. So can the decision to take a longer break or plan for retirement. A resilient business needs a way to continue when the owner cannot be there.

Infrastructure: disruption outside your control

Infrastructure and community resiliency scored 1.5 out of 3.00. This pillar looks at everything from buildings and roads to communications, emergency planning and local support.

Only 32.73 percent of respondents felt confident they could keep operating at a basic level during a major disruption. That could mean a storm, power outage or supply chain problem. About a quarter said they did not feel confident at all.

Cell service is a common problem. More than 30 percent said poor cell service often affects their operations. Another 30.91 percent said it sometimes affects them.

Many businesses rely on dependable cell service. They also need fast, reliable internet. In many rural areas, both can be a real problem. Respondents also mentioned unreliable power and road closures.

Businesses cannot fix these problems alone. But they can plan for the effects.

Do you know where to get help?

Businesses also reported a gap in their knowledge of local support.

Only 25.45 percent of respondents knew which community or regional emergency resources existed and how to access them. Forty percent did not know about any such resources.

That creates a problem during a crisis. Business owners may need to find help while they manage damage, staff concerns and customer needs.

A contact list prepared in advance can save time. It can tell an owner who to call about power, roads, emergency support or business assistance.

A reason for confidence

In Western Nova Scotia many businesses have already recovered from major disruptions over the last few years. Among businesses that experienced a significant disruption in the past five years, about half returned to normal or near-normal operations within two weeks. These disruptions included storms, wildfires and pandemic restrictions.

This tells us something important. Western Nova Scotia businesses can recover when they need to. The next goal is to make that recovery less dependent on pressure and improvisation.

A plan can help a business act sooner. A cross-trained employee can keep a key task moving. A list of contacts can reduce confusion. A written process can help someone step in when the owner is away.

What this means for your business

You do not need a major project to start closing these gaps. Begin with the risk that would cause the most harm tomorrow.

If you work alone or have a small team, write down your key processes. Include supplier contacts, customer information and important passwords. Store the information in a safe place. Tell a trusted person where to find it.

If hiring remains difficult, choose one critical task. Train one other person to do it. You do not need to train everyone to do everything.

If you do not know which emergency or business support resources exist in your area, ask now. Contact Western REN or your municipality while conditions are calm.

If internet or cell service often fails, plan for those times when it is unavailable. Identify the tasks that can still happen without a connection. Keep the information you need to handle those tasks available offline. Make sure staff know what to do when systems are down.

Think through a normal workday without internet access. How would you take payments? How would you contact customers? How would you access key information?

Write down the answers and test the plan before you need it. A bad connection day does not need to become a bad business week.

Small steps can reduce the effect of major disruption. The key is to take those steps before you need them.

Read the full Resiliency Survey Report here.

Read Article 1 in the series here.