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According to the US Small Business Administration, New Jersey is now home to over 953,000 small businesses, which represents 99.6% of all businesses in the state. In sum, approximately 670,000 people work for these businesses, generating around $28 billion in payroll income per income, but the question arises: why exactly is this the case? What makes New Jersey fertile ground for SMEs, and if you’re thinking of starting your own business, is this really the location to be?
Living and Working in New Jersey
Perhaps one of the most important reasons New Jersey has become such a fertile ground for SMEs is because of the environment of the state itself. Information gathered back in 2022 demonstrated that New Jersey was one of the safest states in the nation, with a crime rate of 4.3, while another survey revealed that 47% of New Jersey citizens feel safe and secure in their everyday lives.
This emphasis on safety and security also travels over to the work environment, with the state being known for its robust workplace safety regulations and programs designed to protect both employees and employers. If you’re thinking of starting a business in New Jersey, it’s still important to take precautions.
Accidents can still happen, of course, and it’s always best to get a workers compensation insurance quote to manage any risks. But there’s no doubt that the overall safety culture in New Jersey has created a solid foundation for businesses to thrive, with the high quality of life and work regulations allowing them to flourish in an environment that promotes well-being and stability.
The Positioning of New Jersey
It’s also worth mentioning that New Jersey is in a prime position due to its proximity to other major metropolitan areas. Both New York City and Philadelphia are in close proximity, which provides SMEs with access to large consumer markets, suppliers, and business networks – all of which can be crucial when it comes to growth and development.
As well as this, its location along the Northeast Corridor – as well as its proximity to key international airports like Newark Liberty International – makes New Jersey an ideal hub for logistics and transportation, facilitating easy access to domestic and international markets, should companies be looking to expand beyond the region.
No matter whether you’re looking to keep your business small or scale it up over the next few years, New Jersey could be the perfect strategic location for your company’s operations, especially if you’re in the logistics, manufacturing or tech industries – all of which have been flourishing over the last few years.
The New Jersey Ecosystem
One last reason why New Jersey is fertile ground for SMEs is because of its supportive business ecosystem. Across the state, there are a variety of incentives and programs that support new businesses, including tax credits, funding opportunities, and resources from a range of organisations. To give an example, the NJEDA – New Jersey Economic Development Authority – has been instrumental in providing financial assistance, with programs like the Small Business Fund and Loan Participation Program enabling newcomers into the scene the ability to thrive and grow.
As well as this, local tax incentives like the “Grow New Jersey Assistance Program” have been offering substantial tax breaks for companies looking to expand, giving them the support needed to reduce their financial burden and invest more in innovation and talent development.
Speaking of talent, this is another area where New Jersey’s ecosystem thrives. Across the state, there are a number of excellent education institutions, from world-renowned universities like Princeton and Rutgers, to technical colleges like the NJIT and Camden County College. Complete with programs like the New Jersey Talent Network – which helps employers connect with qualified individuals – it’s clear that New Jersey is both a fertile ground for SMEs and talent, merging the two together to create a business powerhouse that competes with the very best business hubs around the world.
