Business Startups
May was North Carolina's second-busiest month on record for new business starts, new data shows. Secretary of State Elaine Marshall said 17,377 companies launched in May. The only month with more new startups was June 2021, when the economy was roaring back after the COVID-19 pandemic. State data goes back to 1960.
The news comes as CNBC ranked North Carolina the best state to do business, the third time the state has topped the national ranking since 2022. It's been in the top three since 2019. In a press release noting the honor, Stein credited the state's people, schools, infrastructure and quality of life. His administration reports that in 2025, companies have announced $17 billion in investments and 20,000 planned jobs.
Senate Leader Phil Berger, R-Rockingham, said the state's community colleges and universities are crucial to ensuring North Carolinians can fill those jobs. Berger said in a press release that it was time to "double down on our efforts to support business growth."
"Since 2011, the Republican-led General Assembly has reshaped our state's business climate by slashing our tax rates, reducing regulatory hurdles, and supporting world-class educational and job training programs," he wrote.
Business starts are a credible "leading indicator" for hyperlocal and short-term gross domestic product, a recent study by the Kenan Institute of Private Enterprise found. However, they are not a guarantee of long-term growth. A quarter of North Carolina's small businesses fail within three years, and half are lost within seven years.
That's something Marshall is working on, she said, especially in rural areas. "I'm committed to making sure that small businesses are not neglected," Marshall said in an interview Thursday.
Since Hurricane Helene, start-ups in the western part of the state have outpaced the other 70 counties.
"That's uplifting," Marshall said. "Because, you know, some people would have predicted it would have been way off, but I'm thrilled that these folks are getting their feet under them now."
Some state lawmakers are pushing for small business assistance to be included in disaster relief, which Marshall believes "would go a long way."
The House proposed small business grants that the Senate has several times rejected, saying they would violate the state constitution's emoluments clause.
CNBC ranks NC first for business; Gov. Stein touts progress in Wilmington
North Carolina has regained the top ranking as the best state for business. The Tar Heel State received top honors in the annual CNBC rankings thanks to "a solid economy, a world-class workforce, and a wealth of corporate hospitality" according to a story from the network.
NASCAR driver and North Carolina resident Brad Keselowski was given the opportunity to make the announcement on CNBC show "Squawk Box" on Thursday, July 10. The show aired from Wilmington at Battleship North Carolina with Gov. Josh Stein in attendance.
North Carolina finished first in 2022 and 2023 while coming in second in 2021 and 2024. In categories for this year's results, it finished third for economy and fourth for workforce and business friendliness. The state also ranked sixth in education and eighth in access to capital.
CNBC noted several major businesses coming to the state, including JetZero and more Amazon centers. One of those centers is coming to the Wilmington area as local leaders celebrated a groundbreaking for a fulfillment center in March.
"This confirms what we have known for a long time – that North Carolina is the best state in the country for business," said Stein in a news release. "Our people, state’s business climate, top research universities and excellent community college system, infrastructure, and high quality of life help both companies and workers thrive."
Stein has announced business expansions that will yield nearly $17 billion of new capital investment across the state, according to the release. The investments have created 20,000 new jobs. North Carolina is a leader in clean energy, with more than 100,000 people employed in the sector.
Stein visited the Cotton Exchange in downtown Wilmington to celebrate the ranking. Stein said that investing in the public school system and raising teacher wages is the first step in bolstering the state's economy.
Water Transfers
Both houses in the N.C. General Assembly passed a bill on June 26, putting a pause on interbasin transfers, including the one Charlotte Water has requested that would affect the Catawba River. House Bill 850 passed in the N.C. House by a vote of 105 to 1. The bill was sponsored by Catawba County Republicans Jay Adams and Mitchell Setzer, Burke County Republican Hugh Blackwell and Republican Blair Eddins, who represents Alexander and Wilkes counties. The bill passed in the state Senate unanimously. Gov. Josh Stein signed the bill into law on Wednesday.
According to Western Piedmont Council of Governments Executive Director Anthony Starr, the bill puts a moratorium on large interbasin transfer approvals until after March 2027. An interbasin transfer is when water from one source is transferred to a basin sourced by a different body of water.
“The General Assembly has recognized there is a problem and this is something that needed to be studied,” Starr said.
The bill says the North Carolina Collaboratory at the University of North Carolina will study legislation around interbasin transfer requests and present its findings to the General Assembly. The bill defines a large interbasin transfer as a transfer of more than 15 million gallons per day.
Among other issues, the collaboratory will study the effects of the economic impact on communities affected by transfers, increased water pollution and changes to the transfer request process needed due to "recent climate trends."
In the case of Charlotte Water, the public utility in Mecklenburg County was requesting a transfer of up to 30 million gallons of water per day from the Catawba River basin to the Yadkin-Pee Dee River basin. Charlotte Water currently has an interbasin transfer certificate that allows it to transfer up to 33 million gallons per day to the Yadkin-Pee Dee basin. Charlotte had not received approval for the request but was in the process of receiving approval from the N.C. Department of Environmental Quality.