A Thriving Environment for Entrepreneurship in the Tar Heel State
North Carolina has established itself as one of the top states for small business and franchise growth in the U.S. due to its competitive tax rates, limited regulatory burdens, infrastructure investments, skilled workforce, and population growth. For entrepreneurs looking to start or expand a small business or franchise, North Carolina offers an ideal environment with strong fundamentals for sustained success.
North Carolina has one of the lowest corporate income tax rates in the country at 2.5%, compared to the U.S. average of 6.6%. It also has the second lowest individual income tax rate and sales tax rate in the country. These competitive tax rates allow small businesses and franchises to keep more of their profits to invest in growth.
According to a 2019 Small Business Policy Index, North Carolina ranks 4th in the country for its tax policies based on criteria such as individual and corporate income tax rates, sales tax burden, and tax compliance complexity. These tax policies have spurred strong small business growth in North Carolina, with over 1 million small businesses operating in the state.
A Growing, Business-Friendly Population
North Carolina has a population of over 10 million residents, making it the 9th most populous state. Its population has grown by nearly 1 million people over the past decade, driven by net migration from other states. North Carolina's lower costs of living and business-friendly policies continue to attract new residents and entrepreneurs.
A Solid Infrastructure for Business
North Carolina has a strong infrastructure system including 6 international airports, 2 deep water seaports, and major interstate highways. The state has invested heavily in infrastructure, allocating more than $1.8 billion annually in funding for transportation and public infrastructure. This infrastructure supports the transportation and logistics needs of small businesses and franchises across the state.
An Abundant, Skilled Workforce
North Carolina has a nationally ranked university system and 58 colleges and universities producing a skilled workforce. With nearly 500,000 students enrolled in higher education, North Carolina produces technical and professional talent for growing small businesses and franchises. North Carolina also ranks first in the tech workforce category, indicating a strong talent pool for knowledge economy jobs.
Projected Growth Among the Highest in U.S.
North Carolina's population and economy are projected to grow at a rate significantly higher than national averages over the next decade. The state GDP is projected to grow by 2-3% annually, while population growth is expected to exceed 1% per year over the next 10 years. Strong growth forecasts like these signal optimism about the state's business environment and bode well for entrepreneurs looking to tap into North Carolina's expanding economy.
In summary, North Carolina has established a thriving landscape for small business and franchise opportunity due to competitive tax rates, limited regulation, infrastructure investments, a skilled workforce, and population growth. The state offers entrepreneurs a nurturing environment to start and scale a successful business. With its strong fundamentals for growth, North Carolina is poised to remain a leading state for small business expansion and job creation for years to come.
