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 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.