2016 state of small business.

• Author: Daugherty, Scott

Solid economy is supporting small business growth in North Carolina

Over the last several years, we have experienced very positive economic growth both at the national level and in North Carolina. This has been driven by a variety of factors including the strength of the U.S. dollar in the world economy, increased consumer spending domestically, continued declines in U.S. and NC unemployment rates, and a rise in overall public opinion about the state of economy.

North Carolina has also continued to benefit from strong in-migration of working-age adults. Some would argue that this growth is driven by changes in our tax climate. A much more likely argument is that our location and our broad range of attractive assets ranging from lower costs of living, excellent public universities and community colleges as well as good schools, to highly livable communities and outstanding physical attractions from the mountains to the sea. These advantages have been drawing large numbers of people to our state for several decades; people who move to North Carolina love it here, and tell others about it.

Promising small business growth in North Carolina continues

Our state is truly a small-business state. More than 97% of all businesses in North Carolina employ fewer than 500 people; nearly half employ fewer than 100. Collectively, these firms account for 50% of the private-sector workforce and 45% of our Gross State Product. They contribute much of our innovation, and outside of the major metro regions of our state--Charlotte, the Triad and the Research Triangle--the role of small firms is more visible and palpable.

Overall, small business is big business in our state. There are more than 850,000 small businesses in North Carolina. Of these, 170,000 have employees beyond the owner and family members. These "home grown" companies account for a significant amount of the innovation that drives our high-tech growth. They also often provide young people with their first job experience. Finally, they are strongly committed to the communities where they live and have invested in their business.

Startups are on the rebound

Many of us watched with concern as startups across the country fell into decline following the Great Recession. According to a recent Kauffman Foundation report, startups reached their lowest point in 20 years in 2013--but have rebounded in the last two years. This is a very promising sign for tomorrow's economy. Driving this increase in startups...