M E M O R A N D U M

TO:                         Members of the Assembly Commerce and Economic Development Committee

FROM:                 Hilary Chebra, Director, Government Affairs, CCSNJ

DATE:                   October 5, 2026

Thank you for the opportunity to provide the perspective of South Jersey’s small businesses and retailers as the Committee considers opportunities to strengthen economic development in New Jersey.

The Chamber of Commerce Southern New Jersey (CCSNJ) represents approximately 1,300 member companies across the region’s seven counties, roughly 85 percent of which are small businesses with fewer than 50 employees. This gives the CCSNJ a direct view into the challenges facing small employers and the factors that influence their decisions to remain, invest and grow in New Jersey.

New Jersey’s economic development efforts appropriately place significant emphasis on attracting major employers and retaining large companies. However, the factors that drive investment decisions for a small business are often very different. For a small employer, growth may mean hiring several additional employees, purchasing new equipment, upgrading technology, improving a storefront or expanding into additional space. Individually, those investments may be modest. But collectively, they are an important part of New Jersey’s economy and the strength of communities throughout the state.

One of the most consistent concerns the CCSNJ hears from small business members is the cumulative cost and complexity of operating in New Jersey. Unlike larger companies, small employers generally do not have dedicated legal, human resources or regulatory compliance departments. New requirements are often managed directly by the business owner or a small administrative staff.

For that reason, the CCSNJ recommends greater consideration of the cumulative small business impact of new mandates, fees and regulatory requirements.

Too often, the impact of a new requirement is evaluated on its own. For a small employer, however, that cost is added to increases in energy, insurance, labor, taxes and existing compliance obligations. Policymakers should consider that broader picture when evaluating new requirements and, where appropriate, examine less burdensome alternatives, reasonable implementation periods or other accommodations for small employers.

The State should also place greater emphasis on helping existing small businesses make their next investment in New Jersey. Economic development incentives are often associated with major capital investments, new facilities and large job commitments. For a small business or retailer, an investment in growth may look very different: new equipment, a technology upgrade, improvements to a storefront, accessibility improvements or expansion into an adjacent commercial space.

New Jersey should continue to support Main Street and small business investment programs that help make those projects possible. Such programs should be straightforward for small employers to access, appropriately scaled for smaller investments and available to businesses throughout the state, including South Jersey.

Retail also warrants specific consideration as part of the State’s economic development strategy.

Retail businesses play an important role in the health of downtowns and commercial corridors. They generate activity that benefits nearby restaurants and service businesses, occupy storefronts, contribute to local tax bases and help make communities attractive places to live and invest.

The loss of a retailer can have an impact beyond that individual business. Vacant storefronts reduce activity in a commercial district and can make it more difficult for surrounding businesses to succeed and for communities to attract new investment. A concentration of vacancies can have an even greater effect on the economic health of a downtown or commercial corridor.

For these reasons, retaining and supporting existing retailers should be viewed as part of New Jersey’s broader economic development efforts. This is particularly important in South Jersey, where many downtowns and commercial corridors rely heavily on independently owned businesses.

Seasonality should be considered when the State designs economic development programs and new business requirements. South Jersey’s shore economy also creates a different set of challenges for small businesses and retailers. In shore communities, many businesses earn a significant share of their annual revenue during a relatively short tourism season and rely heavily on seasonal employees. That business model does not always fit neatly into State programs or policies designed around businesses with steady, year-round employment.

A retailer, restaurant or attraction at the shore may maintain a small year-round staff and significantly increase its workforce during the summer. As a result, eligibility requirements tied to employment levels, job retention or other workforce measures can be difficult for seasonal businesses to meet, even when those businesses are healthy, growing and investing in their communities. Programs intended to support small business growth should not unintentionally exclude successful businesses simply because their workforce reflects the seasonal economy in which they operate.

Access to workers is another significant issue for small employers in South Jersey. Limited public transportation continues to create challenges for both employers and employees in parts of the region. In response to this need, the CCSNJ launched SJ Connects, a free shuttle network serving all seven South Jersey counties and connecting residents with employment centers, healthcare, education, essential services and existing public transportation.

SJ Connects grew directly out of what we were hearing from employers across the region: businesses had jobs available and residents were looking for work, but in many cases transportation was the barrier between the two.

For a small employer, this challenge can be particularly difficult to solve independently. An available workforce is only meaningful if employees can reliably reach the workplace. SJ Connects is one example of how a targeted regional solution can address a very practical barrier to business growth, and why workforce transportation should remain part of the State’s economic development discussion.

With approximately 85 percent of the CCSNJ’s membership made up of small businesses, we see the importance of these employers to South Jersey’s economy every day. Their individual investments may not always generate headlines, but collectively they create jobs, support communities and contribute significantly to the economic strength of the region.

New Jersey’s economic success should be measured not only by the businesses the State attracts, but also by whether the small businesses and retailers already invested here have the opportunity to remain, grow and make their next investment in New Jersey.