Small business owners across New Jersey and the U.S. are entering the second quarter of 2026 with high ambitions but thin safety nets. According to the second annual Financial Preparedness Survey released by Mount Laurel-based TD Bank, a striking disconnect has emerged: while 94% of owners feel financially prepared for the year ahead, only 24% actually possess the six months of emergency savings they admit is ideal for survival.
As New Jersey continues to position itself as a “one-stop” hub for entrepreneurs—recently reporting $167.7 million in economic impact from streamlined business formations—local owners are finding that confidence alone doesn’t pay the bills when revenue dips.
The survey highlights a “confidence vs. cushion” gap. While 34% of respondents believe a business should have more than six months of reserves, the vast majority are operating with significantly less. This vulnerability comes at a time when Garden State businesses face specific regional pressures:
- Persistent High Costs: 44% of owners cited high input costs—including utilities and insurance—as a primary threat.
- The Fraud Epidemic: 54% of businesses reported a fraud attempt in the past year, with 12% suffering direct financial loss.
- Labor Pains: Despite a net positive hiring outlook for 2026, 37% of owners still struggle to find and retain skilled workers.
“Working capital is critical to both short- and long-term stability,” Andy Bregenzer, head of regional and small business banking at TD Bank said. “It is not just about business survival, but about positioning their businesses to grow with confidence no matter what the future holds.”
In a major shift from 2025, New Jersey’s small business sector is aggressively adopting Artificial Intelligence. Nearly 69% of owners now use AI to trim expenses, up from just 39% a year ago.
Interestingly, the “robot apocalypse” fears seem to be fading in the local workforce. Roughly 60% of owners believe AI will actually lead to an increase in their workforce size by allowing them to scale operations and improve customer service. This mirrors recent state-level initiatives, such as the NJEDA’s AI for Small Business Grant Program, which offers up to $250,000 to help local firms integrate these technologies.
Despite the lack of cash reserves, Garden State entrepreneurs aren’t retreating. Instead, they are looking to “level up”—a term 54% of owners define as market expansion and 47% define as modernizing systems.
To fund these ambitions, 93% of respondents say they are likely to apply for a loan or line of credit in the next 18 months. TD Bank has noted a significant shift toward traditional banking, with 55% of owners planning to secure financing through their primary bank rather than alternative lenders.
With 2.3 million “Boomer-owned” businesses nationwide nearing retirement—and many in New Jersey’s aging industrial and retail corridors—the need for transition advice is peaking. Over half (53%) of owners now say they intend to hire a financial advisor this year, a massive jump from 27% in 2025.
As New Jersey’s business climate remains “fair to good” according to local indices, the message from the Mount Laurel-based banking giant is clear: the path to 2027 requires more than just optimism—it requires a documented plan and a deeper rainy-day fund.
