North Carolina had modest growth in 2014 and is an attractive location for entrepreneurs, according to a study.
How Did North Carolina Small Business Fare in 2015?
North Carolina small businesses showed steady growth in 2014.
The more than 800,000 small firms in the state contribute nearly one-half of the gross state product, according to the 2014 Annual State of Small Business Report by Small Business and Technology Development Center (SBTDC).
Small-to-midsized businesses in North Carolina employ 1.5 million people, which accounts for 45 percent of private sector employment in the state. These “home grown” businesses are “clearly important to our economy and our continued economic growth,” says SBTDC state director Scott Daugherty in the report.
New job creation slowed during 2014, unlike the national rate, to a monthly average of 5,100 new workers per month this year from 6,600 new establishment workers in 2012–2013.
The report also analyzed the state’s business survival rates, which can illustrate how appealing a state is to start a business as well as provide some insight on how effectively a state is supporting its business community.
Based on the U.S. Bureau of Labor Statistics’ Business Employment Dynamics data, North Carolina falls in the upper to middle of the pack in terms of survival rates, and is among the leaders in number of establishments created and surviving over time. Forty-three percent of companies born in 2007 (just before the beginning of the Great Recession) were still open for business in 2013. Compared nationally, North Carolina ranked No. 25 and about 3 percent below the national rate.
Ten-year survival rates for businesses born in 2003 were nearly 37 percent in North Carolina, compared with the 37 percent national rate (North Carolina ranked No. 16).
“Looking at just survival rates, North Carolina doesn’t stand out as a state where companies have an above average chance of making it for the long haul,” says Mari Howe, senior research analyst at SBTDC. “But when looking at establishment birth rates, it’s clear that entrepreneurs saw North Carolina as a great place to start their businesses in 2003 and 2007. And, perhaps more importantly, a larger number of those businesses survived in North Carolina than in 45 other states during the worst economic downturn of the century.”
On average, 17,002 companies start in North Carolina annually, and the state ranks No. 10 for births, according to the Business Employment Dynamics data series.
Question: How did your business do in 2014? Tell us in the comments section below.
