Despite Empty Storefronts, Jersey City Gets High Marks for Small Business

Walk around Downtown and there is no shortage of empty storefronts. Nevertheless, Jersey City is one of the best places in the U.S. to launch a small business, ranking 13th among major cities with populations under 500,000, according to a recent analysis by SoFi. The report compared 50 cities based on metrics like Office Space Cost,” “Self-Employment,” “Working Age,” and “Cost of Living.” 

“Jersey City is a great place to do business. It is a center of commerce in its own right with a built-in customer base and access to New York City and Northern New Jersey. Its cultural diversity keeps things interesting with access to a wide variety of products available from around the world,” said Emory A. Edwards, president and CEO of the Hudson County Chamber of Commerce.

In SoFi’s rankings, the top three cities for starting a small business were Miami, FL, Minneapolis, MN, and Atlanta, GA, in that order.

According to SoFi, Jersey City’s strategic advantages are that it ranks 1st in “Walkability” and 4th in “Working-Age Population,” positioning it as “accessible” and “attractive” for a skilled workforce. However, affordability remains a challenge; Jersey City placed last (50th) for “Office Space Costs” and ranked 43rd in “Cost of Living.” While “Unemployment” ranked at 27th, “New Business” growth was promising at 14th among similar cities.

Edwards also agreed that businesses in Jersey City face many challenges, saying “Taxation, transportation, and a high cost of living continue to put a burden on our businesses and our workforce. The 1% payroll tax differentiates Jersey City from neighboring municipalities and hits small business owners especially hard in an already high-tax state. Many employees cannot afford to live here and must commute.” 

Downtown, rising rents have forced a number of small businesses to close recently. Chrissy Kizer was thrilled when she found an affordable space for her “metaphysical” shop, Chrissy the Crystal Indigo, on Grove Street. “I thought it was amazing … ’cause I had never even had a brick and mortar before.” But a new owner came in and raised her rent by 60%. This month she moved her shop to Hoboken. “A lot of the places that have been there for a long time are either closing or just hanging on.” Around the corner, on the Newark Avenue Pedestrian Plaza, The Milk and Cream Bar announced that it was closing as well. “The tough economy and rising rents have led us to make this difficult decision,” said the owner.

Across the U.S., small businesses are on the rise, with 5.5 million new business applications filed in 2023. People are diving into entrepreneurship for a variety of reasons, from personal ambition to shifts in consumer needs, or as a fresh start after a job loss. Small businesses now make up nearly half of the U.S. workforce, according to the Small Business Administration, with location being a crucial factor for long-term success.

Edwards noted that the Chamber of Commerce is working with the Jersey City Economic Development Corporation and other partners within Jersey City and Hudson County to support small businesses and retailers. “[We] stand for economic vitality, quality of life, opportunity, and growth for every sector and segment of our diverse business and nonprofit community. Changes to the Urban Enterprise Zone should help bring more business resources and even rent support. We are advocating to improve and streamline permitting processes that can make it hard to open,” he said.