A group of regional government organizations across North Carolina, including the Triangle J Council of Government, outlines in a new report four goals that it says if achieved would make the state more competitive and create more jobs. And among the potential big job drivers is the state’s entrepreneurs. 

The report notes that entrepreneurs/small businesses employ more than 20 percent of the state’s work force – up substantially in recent years – and therefore are of increasing important to N.C.’s economic health.

One section from the N.C. Association of Regional Councils 36-page document which was issued Wednesday focuses on the need to boost the entrepreneurial sector, including better coordination of support efforts, more startup incubators, and more capital.

Calling for a “new strategic direction,” the report titled NC Tomorrow, stresses the importance of entrepreneurs to job growth.

“New business formation lies at the heart of a dynamic economy,” the report says. “Consequently, fostering greater entrepreneurial behavior is imperative to sowing the seeds for future growth. North Carolina will need to create new businesses and support small existing businesses looking to expand.”

Several pieces of data cited in the report point out the successes and failures of N.C.’s entrepreneurial sector, from new jobs to a growing percentage of the state’s work force being employed by small and privately held businesses.

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As part of a statewide, industry-wide job effort, the report said state leaders “must seek to create hundreds of ‘very high-growth’ 
companies (i.e., companies that double from their current size in terms of employment or sales).

“Doing so will require increasing opportunities for entrepreneurs to overcome impediments such as limited capital, lack
of management expertise, an inadequately trained workforce, and an underutilized entrepreneurial and business support service network.”

Action Steps

The plan spells out six steps to drive more jobs:

  • Expand access to equity and risk capital through micro-lending, crowd funding and angel investment activity.
  • Expand the network of business accelerators, incubators, pop-up-shops or other shared services/space as part of broader downtown revitalization, redevelopment, and Main Street improvement efforts.
  • Support and expand entrepreneurial education and training programs in high schools and at local community colleges.
  • Coordinate the activities of entrepreneurial service providers (e.g., small business centers, small business technology development centers, incubators, economic development, financial assets, and other business
  • support organizations).
  • Aggressively market entrepreneurial support services to area companies and individuals.
  • Organize networking events for entrepreneurs and their support
  • intermediaries

Spreading the Wealth

The report, which was compiled over an 18-month period and presented to N.C. Department of Commerce officials on Wednesday, points out that entrepreneurs and newly formed companies have created “more than 40,000 jobs” and drew “nearly $8 billion in private capital over the past 15 years.” The report cites data compiled by the statewide Council for Entrepreneurial Development.

However, the report notes that further growth is hindered by a “lack” of an “effective entrepreneurial ecosystem” in most areas of the state.

The Triangle – especially in Durham and Raleigh – and Charlotte have thriving startup communities as exhibited by the recent surge in the growth of startup incubators, accelerators and a growing number of shared office space complexes such as HQ Raleigh as well as The American Underground in Durham and Raleigh.

The report says that entrepreneurial efforts have been hurt because they are “not well coordinated and poorly marketed.”

The 2009 recession also hammered the ranks of businesses in the state, resulting in the loss of 6,755 firms – or 11 percent, according t a 2012 Small Business and Technology Development Center. Because so many companies were lost, North Carolina ranks “43rd lowest in net new entrepreneurial activity,” the report states. 

Despite the losses, entrepreneurial dreams have not been extinguished as a visit to any of the startup hubs, including downtown Charlotte, clearly shows.

The report notes that “sole proprietorships” – in other words, often small and privately held businesses – are responsible for 20.3 percent of North Carolina jobs. That’s up from 15.7 percent in 2001,  according to the U.S. Bureau of Economic Analysis Regional Economic Information System.

Entrepreneurs also are hampered by the variety of entrepreneurial organizations which can leave them “bewildered” and “confused.” Or, the report adds, they “don’t typically look externally for help in any proactive way.”

Overall Goals

The report, which runs 36 pages, is one of of several plans that have been provided to Gov. Pat McCrory, including the North Carolina Chamber.

The main four goals of the NC Tomorrow plan are:

1. Build on each Region’s Competitive Advantages and Leverage the Marketplace
2. Establish and Maintain a Robust Regional Infrastructure
3. Create Revitalized, Healthy and Vibrant Communities
4. Develop Talented and Innovative People

To read more about the plan, visit the organization’s web site.