State of Small Business in 2026

By Byron Hicks, Assistant Vice Chancellor / Executive State Director

This year presents a positive outlook for small businesses with opportunities to adapt and grow in a changing economic environment. A Charlotte Business Journal citing a Bank of America report that found that 74% of small business owners expect revenue increases in 2026, and nearly 60% plan to expand their businesses. At the same time, Tom Barkin, President and CEO of the Federal Reserve Bank of Richmond, notes that businesses should expect slower workforce growth. As 2026 begins, this combination of opportunity and constraint means business owners will likely continue to do more with leaner teams and may need to raise wages to attract and retain talent. These labor issues could offset potential gains from increased revenues. While the overall outlook remains positive, economic uncertainty continues to shape decision-making.

North Carolina’s Competitive Advantage

North Carolina continues to be one of the best states in the nation for business. Our state has so many resources to support small businesses and a strong collaborative ecosystem. Workforce development remains a key strength, with our community colleges and universities preparing talent with the skills needed to meet business demand. NC Workforce Boards provide additional pathways for employment, while economic developers actively recruit and support companies choosing to locate or expand in North Carolina.

North Carolina is also on the forefront of innovation. We are seeing growth in many diverse and technical fields, from battery production to pharmaceuticals. Much of this momentum is driven by our entrepreneurs and strengthened by university research programs. Organizations such as NC Innovation, NC IDEA, the NC Biotech Center, First Flight Venture Center, and the SBTDC play a critical role in supporting this progress. We are seeing tremendous growth in manufacturing as well, supported by the new Industrial Commons, the Manufacturing Solutions Center, and new SBA initiatives alongside the SBTDC’s ongoing engagement.. 

SBTDC Impact and Continued Commitment

In 2025, the SBTDC served over 5,500 small businesses by providing over 50,000 hours of no cost, confidential counseling. These hours of in-depth one-on-one counseling helped small businesses in North Carolina access over $200 million in capital to expand their businesses, create and retain over 4,600 jobs and increase sales by over $171 million. The SBTDC also assisted over 300 entrepreneurs in launching their own businesses. These outcomes directly support business owners as they respond to workforce challenges, pursue growth, and strengthen long-term sustainability.

This work advances the SBTDC mission to positively impact North Carolina’s economy by helping small and mid-sized businesses and launching promising startups.

Closing out the forty-first year of serving businesses in North Carolina, we are excited to announce that the SBTDC has relocated our State Administrative Office to 701 Corporate Center Drive, Suite 340, Raleigh, NC. This new location will make us more accessible to our partners in Raleigh and statewide. We will be able to host more events onsite to serve staff and clients. This move also supports a renewed energy in our abilities to collaborate and serve North Carolina’s business community. 

As we embark on 2026, the SBTDC stands ready to actively work alongside clients, partners, federal, and state agencies to continue to positively impact North Carolina’s economy.