Thirty-six percent of small businesses in New Jersey were unable to pay their rent in June, according to a recent study. The good news: That number is down 2 percentage points from May.
The percentage is going in different direction for minority-owned business. Nearly one in two (49%) were unable to pay their rent — an increase from 45% in May.
The numbers come from the June Rent Report from Alignable, a data-driven trend-tracker based in Boston.
The poll, conducted from May 22 to June 15, surveyed 3,814 randomly selected small business owners across the U.S.
The New Jersey numbers mirrored those of the country, where 53% of minority business owners said they could not pay their rent.
Chuck Casto, a former small business owner who started Alignable, said the reasons are numerous.
- Inflation continues to grow, due to supply chain shortages and price hikes. And 67% of SMBs worried it will impede their recovery.
- Labor shortages abound among many businesses that desperately need help to generate the revenue required to bounce back. In fact, now 55% of SMBs said they can’t fill necessary positions, up 5% from last month.
- Confusion reigns as restrictions are lifted. Some 32% of SMBs said they’ll still require customers to wear masks in their establishments to promote a safe environment, even if their state says vaccinated people no longer need to wear them.
The biggest issue: 57% of small business owners only have half or less of the monthly revenue they had prior to the pandemic — and 48% said they’ve had trouble bringing more than half of their customers back.
