Researchers at the Heldrich Center for Workforce Development are conducting a study to determine how New Jersey’s public Artificial Intelligence (AI) policies can better meet the needs of small businesses. The project is funded by the New Jersey State Policy Lab.
Lily McFarland, Research Project Assistant, discussed early findings in a recent blog post. The research team found that there is no consistent definition of “small business” across government agencies and limited standardized public data on small businesses, especially at the county level. These challenges influenced their research approach and guided their selection of Middlesex County as the focus area.
The term “small business” is used widely but defined differently by various state and federal agencies. Definitions may depend on firm size, revenue, number of locations, or industry code. There is no single standard across all agencies or levels of government. For example, the U.S. Census Bureau has examined different metrics used to classify small businesses, while the U.S. Small Business Administration provides its own size standards for loan programs and contracts.
To move forward with their study, researchers chose a definition based on what was most common and measurable: any firm with fewer than 100 employees. This allowed them to use publicly available datasets for analysis.
The team then analyzed 2022 data from the U.S. Census Bureau to identify which counties in New Jersey had the highest numbers of small businesses under this definition. Counties were ranked accordingly.
Next, researchers attempted to examine demographic data—such as information about women- and minority-owned business enterprises—for five counties with the largest number of small businesses. They found that standardized public demographic data at the county level was lacking, making it difficult to assess ownership characteristics systematically.
They also reviewed information from New Jersey Selective Assistance Vendor Information (NJSAVI), a registry containing self-reported details from businesses registered with the state. While NJSAVI offers useful insights into firms involved in state procurement systems—including some demographic information—it does not capture all small businesses statewide nor provide comprehensive county-level analysis.
In selecting a county for deeper analysis, researchers considered more than just quantitative rankings; they also looked at practical factors such as existing relationships between counties and both the Heldrich Center and Rutgers University.
Middlesex County was ultimately chosen as it has 17,827 small businesses—the second highest total in New Jersey—and hosts resources like the New Jersey Small Business Development Center at Rutgers University – New Brunswick. This center provides training and support services to local entrepreneurs, including women- and minority-owned firms. Middlesex County also stands out for its diverse population; it holds New Jersey’s highest score on the U.S. Census Bureau’s Diversity Index.
“This selection reflects both the concentration of small business activity in Middlesex County and the presence of institutional supports that can facilitate meaningful analysis of program alignment and local business needs,” according to project materials.
The study highlights ongoing difficulties faced by researchers trying to define and measure small business activity using available public data sources—especially when aiming to understand how policy initiatives serve diverse groups of entrepreneurs.
The Edward J. Bloustein School of Planning and Public Policy at Rutgers University oversees several research centers focused on workforce development among other topics (source). The school has received national recognition for its academic programs (source) and operates within Rutgers University (source). Stuart Shapiro became dean in 2023 (source).
References:
– Hait, A., United States Census Bureau
– U.S. Census Bureau