More than half of New Jersey's small business owners may call it quits due to COVID-19, according to a new survey.
The New Jersey Business & Industry Association report found that of the business owners contacted, 28% said they will look to sell or shutdown their business sooner than expected due to continued obstacles, while 31% said they are still determining if their plans will change.
“When nearly 60% of employers are either looking to end their businesses sooner, or considering it, due to these continued obstacles, it should be a red flag for our policymakers who might consider more mandates or policies that make it more costly to do business in New Jersey,” said NJBIA President and CEO Michele Siekerka.
“Fewer businesses mean fewer jobs and less revenue for the state as it looks to make an economic recovery.”
Staffing has also been an issue with 73% of small business owners saying it has been more difficult to attract workers. The NJBIA survey revealed the following impacts for small business owners in 2021:
- 57% had scheduled interviewees who didn’t show up; 46% had interviewees who canceled their interviews
- 49% had candidates who said they wanted to remain unemployed to collect unemployment benefits
- 27% had candidates who asked to be paid off the books so they could continue to collect unemployment
- 26% had candidates who said childcare challenges impacted their ability to return to work
- 79% said they were impacted by supply chain issues and delays more in 2021 than in previous years
- 52% said they believed businesses that offered remote work flexibility put in-person only employers at a competitive disadvantage
In an attempt to resolve staffing shortages 33% of small businesses owners have increased pay for employees by 5% or more in 2021.
Businesses expect that trend to continue upwards in 2022 with 22% saying they'll increase wages by more than 5%.
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