Over the last several years, the economy around the nation has discouraged many people from starting or growing a business. The so-called Great Recession caused some to worry as businesses were forced to lay off workers or shut their doors completely. However, recent data from New Jersey has suggested that people are much more optimistic about the economy for the first time in years. This had led people to consider business formation or expansion of their current operations.
The survey was conducted by the New Jersey Business and Industry Association, which is an interest group with more than 20,000 members. The data found that one out of every five businesses — or 20 percent — was going to be expanding its workforce within the next year. Last year’s survey found that only 15 percent of businesses were planning on expansion. Furthermore, the survey found that while last year 13 percent of businesses were planning to cut their workforce, this year only 11 percent of businesses were going to be downsizing.
NJBIA also found that business owners think New Jersey is a good place to build or own facilities. According to the data, 22 percent of business owners believed New Jersey was a good place to make estate purchases. While this data was collected before Hurricane Sandy, the NJBIA still believes New Jersey will see business expansion in the near future.
As the economy continues to grow, more people in New Jersey are likely to take the plunge and open a business. These people should remember that by considering business formation issues early on in the process, they can give themselves the best possible opportunity to weather future economic downturns.
Source: nj.com, “Businesses have positive outlook for N.J. economy for first time in 8 years,” Stacy Jones, Nov. 20, 2012
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