Newark, NJ Business Climate Published May 14, 2019 | By Achim Neumann, President Newark New Jersey is home to some of the biggest corporations in the country including IBM, Panasonic Corporation, and JPMorgan Chase. The city continues to reshape its business climate as an economic renaissance is beginning to take hold as NYC outgrows itself. Situated within the gateways of the Northeast Corridor, Newark is a major transportation hub with a population of about quarter a million people and millions if you consider it’s just outside New York City. While the city has had some troubles over the last few years, both the government and private initiatives are underway to repair the current economic status of the city. Among these programs currently being implemented by the economic council is the Urban Enterprise Zone Program, a project expected to benefit both large and small businesses. Ideal Location for Business Expansion Located within the heart of the Northeast, Newark is one of the oldest cities in the country. Newark is just 30 minutes or less by train to the center of Manhattan and Jersey City, both major business hubs. For businesses looking to expand their services, Newark provides an ideal location because of its close vicinity to both. Because the city aims to attract new businesses, local business codes have been revised and simplified to lessen the burden of starting a new business within the city. Business Tax Cuts for Hiring City Residents In an effort to boost the employment rate within the city, the local government has set up an ordinance approving payroll tax cuts for businesses getting 50% of their pool of workers form local residents. This benefits not only local communities but encourages an increase in employment rate. Under the new ordinance, business owners are provided with a one percent exemption on the employee tax wage deduction. The tax ordinance also relevantly comes in with the new enforcement of tax policies which hopes to bring in new investors and improve the city’s economic prospects. Transformative Projects to Attract Potential Businesses The city government is slowly shifting its focus to infrastructure development to boost the city’s economic landscape and create a resurgence of business opportunities. This is not an impossible feat considering the city lies within a bustling urban area with structural assets that include connections to the busiest transportation routes in the country. Newark lies in an industrial corridor connecting several economic giants and has some of the largest educational andentertainment venues in the region. New real estate development around the city includes the construction of commercial and office parks for various large international chains like Starbucks, Whole Foods, Chipotle, Gap, and Nike. Targeting a new economic renaissance, Newark’s close proximity to New York and Manhattan is expected to bring in a pool of new investors and talents who are looking for cheaper costs of living and better prospects for success. There are also plenty of businesses for sale in Newark where great opportunities are available. If you’re looking to buy a business in Newark or sell a business in Newark, let the team at A. Neumann & Associates LLC assist you in your search. Starting with a qualified business valuation advisor in Newark is a good place to start, all you need to do is reach out to us!