North Carolina has long been a beacon for small businesses, consistently ranking in the top five states for business by Forbes since 2006. As the Tar Heel State continues to attract people with its affordable housing, low cost of living, and favorable tax rates, it’s no surprise that small businesses are thriving here. A critical component of this flourishing business ecosystem is the significant contributions of minority and women-owned enterprises.

Small businesses are the lifeblood of North Carolina’s economy, representing 99.6% of all private enterprises in the state. They employ nearly half (45.1%) of the state’s workforce. These statistics demonstrate the significant role small businesses play in the state’s economic growth, job creation, and innovation.

However, the diversity in business ownership truly sets North Carolina apart. Minority-owned businesses account for 19.3% of small business owners in the state, providing crucial services, creating jobs, and contributing to local communities. Similarly, women-owned businesses represent a substantial portion of the small business landscape. The state boasts 358,783 small businesses owned by women, offering various products and services across diverse industries.

Empowering Minority-Owned Businesses

Minority business owners bring unique perspectives, innovative ideas, and a rich cultural diversity that strengthens North Carolina’s business landscape. They’re instrumental in driving economic growth, particularly in underserved communities.

For instance, Black/African American-owned businesses total 131,437, while Hispanic/Latino and Asian businesses number 55,138 and 37,511 respectively. These businesses operate in various sectors, including professional services, retail, construction, and technology, among others.

The high percentage of minority-owned businesses in North Carolina reflects the state’s commitment to fostering an inclusive and diverse business environment. Various initiatives, such as access to capital, networking events, and mentorship programs, are designed to support and empower minority business owners.

Women at the Forefront of Business

Women are also making significant strides in North Carolina’s business sphere. With 358,783 small businesses under their leadership, women entrepreneurs contribute substantially to the state’s economic vibrancy.

These businesses span across industries, from technology and healthcare to retail and professional services. Through their leadership, these women entrepreneurs contribute to the state’s economy, empower other women, and drive social change.

Many women-owned businesses in North Carolina are nonemployer businesses, meaning they don’t have additional employees beyond the owners. This model gives women entrepreneurs the flexibility to balance their personal commitments while pursuing their entrepreneurial dreams.

Support and Opportunities

The success of minority and women-owned businesses in North Carolina can be attributed to various factors, including the availability of financing options and business support services.

For instance, the Community Reinvestment Act mandates federal banks and thrift regulators to encourage such institutions to meet the credit requirements of local communities. In 2019, these banks paid out $2.9 billion in loans to North Carolina firms with revenues of $1 million or less.

Moreover, organizations like the Small Business Administration (SBA) offer resources and loan programs specifically designed to support minority and women-owned businesses. From mentorship programs and networking events to educational resources and procurement programs, these initiatives play a crucial role in fostering a supportive environment for diverse business owners.

Facing the Future Together

Despite the challenges posed by the COVID-19 pandemic, North Carolina’s small businesses, including minority and women-owned enterprises, have shown remarkable resilience. They have adapted their business models, embraced digital technologies, and found innovative ways to serve their customers and communities.

The future of small businesses in North Carolina is promising. With the state’s commitment to fostering an inclusive and supportive business environment, minority, and women-owned businesses