Monmouth University
Polling Institute Research

New Jersey needs to be doing all it can in this weak economy to improve our business climate and create jobs. Small businesses form the foundation of our economy and will be what fuels our economic recovery. When small businesses suffer from abusive lawsuits, everyone suffers. New Jersey continues to lose ground to other states whose business environments encourage entrepreneurship, and the short and long term consequences of this reality are having a devastating impact on our economy.

The Monmouth University Polling Institute helped NJLRA capture and quantify the sentiments of New Jerseyís small business owners. The results are clear: reducing the threat of frivolous lawsuits will help restore small business ownersí faith in doing business in New Jersey. Reforming our legal system is a common-sense, cost-effective way to improve small business ownersí experience in New Jersey and help get our economy back on track.

The facts

1
Most (70%) of New Jersey’s small business owners agree that the state's liability laws make it less attractive than other states for business.
2
Nearly two-thirds (64%) say that lawsuits are a problem for New Jersey’s overall business climate.
3
One-in-five small businesses have had a lawsuit filed against them by a client or customer in the past five years.  One-in-three think it is more likely than not that they will be sued in the next five years.
4
The majority of New Jersey’s small business owners (55%) say that reforming our liability laws would improve our business climate. 
5
Among the small business owners who were sued in the past five years, many were forced to make changes to their business:
  • Nearly half (45%) limited plans for expansion;
  • 1-in-3 (32%) decided to discontinue products or services, layoff employees, or cut employee hours;
  • Approximately one-in-five raised prices for their products and services
  • 16% considered closing their business entirely.
6
Liability insurance, which is necessary for most businesses, increased for at least 55% of New Jerseyís small businesses in the past five years.