As Gov. Pat McCrory and Republican leaders struggle to deal with the growing political and business crisis that the controversial law has become, three very early opponents remain deeply committed to fighting for repeal. These startup CEOs aren’t distracted – but committed.

Brooks Bell of the marketing services firm she owns and runs that bears her name remains defiant. The “damaging – and embarrassing” law must be overturned.

Justin Miller, co-founder and CEO of WedPics remains embarrassed. The law has made North Carolina “a joke.”

And Matt Williams, CEO as well as co-founder of ecommerce services firm Windsor Circle, remains motivated. He’s taking “real action” based on “our values” and says the stand is helping further unify his company.

The three were among the first to stake out positions against the so-called bathroom bell when GOP leaders hurriedly passed and McCrory signed it over the course of one fateful March day. Since passage, the bill has triggered outrage among companies small to large (such as Red Hat, which calls Raleigh home). Millions of dollars in business has been lost; PayPal and Deutsche Bank stopped economic development projects; and now the Obama Administration is bringing pressure on N.C. to repeal HB2.

(See the numerous post linked with this story to explore WRAL TechWire’s in-depth coverage of the issue.)

A toxic political stew?

But has the fight over the bill been distracting from businesses, especially startups who have been so outspoken in opposition?

Lewis Sheats, who runs the NC State Entrepreneurship Clinic, thinks so. He cited a political mix of HB2 and the already very contentious presidential campaign as reasons for a drop in optimism as reported by startup executives in the Clinic’s latest quarterly survey.

“Often in the election season, the political environment creates an unknown for entrepreneurs no matter what side of the aisle they are on,” Sheats explained to The Skinny.

“This ambiguity leads to concern of growth, fundraising, and affects decision making.

“It’s possible in the Triangle, due to recent dividing legislation, that this becomes more micro for entrepreneurs. Leading to distraction on a local level and more conversation about the the national picture.

“Again, this is driven by the unknown… creating questions such as:

  • Will there be economic impact, or more economic impact due to a national perception?
  • How will it affect my company long-term?
  • What do I do to plan for it?”

Shortly after the HB2 controversy erupted, a Duke professor reported that political activism can actually benefit a business. So how do the startup executives really feel?

Digging in

The Skinny approached Bell, Miller and Williamson after the survey was published to see if they were changing their views as the HB2 battle drags on.

Not hardly.

“Truth be told, most folks I speak with on this side aren’t too concerned about the election impact on our business. One of the great attributes of our market (weddings) is that it’s not really impacted by economic changes – like new babies & death. And taxes. Basically the four constants in life, ya?,” Miller said.

“However, HB2 is a different story.

“While it’s not directly (negatively) impacting our business it has successfully cast an ugly shadow across our state and turned us into a joke.”

HB2 is definitely hurting in one area, however.

Hiring.

“The largest impact, for me, has been felt while trying to onboard new hires from out-of-state and creating new out-of-state partnerships,” Miller said.

“Fortunately we aren’t held directly accountable for this fuck up but being based here and remaining here has now created a bit of a headache.”

Miller also is prepared to keep fighting.

“In terms of activism, I am all for it,” he stressed.

“Challenge views – especially when discrimination is the backbone.”

The Brooks Bell stand

Bell remains just as defiant as Miller and is committed to be politically active when required.

“As a entrepreneur with 40-plus employees, and someone who is working actively to grow the entrepreneurship community in NC, it’s important to stay engaged with policies that impact that the growth of my business, the startup ecosystem and the wellbeing of my employees,” Bell explained.

“HB2 is affecting all three, and sending a message to the world that NC is not a business-friendly state.”

That’s bad news for startups, especially for those seeking outside funding – which has never been easy in North Carolina.

“Top tier venture capitalists, including Google Ventures and Lowercase Capital are halting their investment in NC-based companies until this legislation is repealed,” Bell pointed out.

“NC startups all across the state are already reeling from this, and quick action must be taken to reverse this damaging – and embarrassing – policy.”

Uniting, not dividing

Williamson said that contrary to what startups told Sheeats in the survey that he is “not aware of a drop in optimism in Triangle entrepreneurs. In fact, from what I can see, the ecosystem is as vibrant as ever.”

To Williamson, political activism can be of benefit to a company, rather than a distraction.

“As for political ambiguity, I can only comment from my own perspective, and that is that unless your business is directly tied to outcomes of government funding or decisions of lawmakers, then I wouldn’t rank political ambiguity very highly on the list of things that might discourage a would-be entrepreneur,” he said.

“Personal finances, fear of failure, inability to assemble the right team or secure financing – these are the things that cause real issues.”

So if HB2 and Donald Trump vs. Hillary Clinton (or Bernie Sanders) shouldn’t be causing real heartburn from a business perspective, what about how activism can affect companies internally?

Corporate culture is extremely important to most, if not all, tech startups as entrepreneurs will tell anyone who asks. The activism needs to fit that culture, according to Williamson, and if so it can prove to be a positive factor.

“Is activism good for company culture? I think so,” he said.

“Our employee base values diversity and inclusion, and loves that we volunteer in our community to support childhood education, and I think these efforts deeply bond our team together.

“I’ve had multiple team members express support, respect and loyalty because our values match theirs, and because we’re willing to take real action on our values. So, I think one can say that activism is good for team unity, which, in all cases, is good for business.”