In the wake of the recent recession across the country, banks are once again pulling back on harsh credit conditions and requirements. This may be lending a hand to another upward trend — business formation. Establishing a business in North Carolina may have recently become easier than it previously has been in recent years.
Prices of homes and stocks are on the rise again, giving those forming a new business an increased amount of assets for investment. The formation of new businesses reached over 650,000 in 2007, but only three years later it had fallen to 507,000. Although the official figures have yet to be released for the years 2013 and 2014, other indications demonstrate that new businesses are indeed on the rise.
In 2013, 27 percent of new jobs were created in businesses that employed 19 people or less. This is up 1 percent and 2 percent from 2012 and 2011, respectively. Loans for small businesses are also up. In 2009 the approval rate for these loans were only at 1 percent, but that has since increased to 4 percent.
As the market appears to create a more favorable environment for establishing a business, astute attention should be paid to business matters other than the economy. Starting from the ground up in North Carolina can require a myriad of legal issues that must first be addressed. It is important to address and attend to items such as employee contracts or even non-compete clauses in a timely manner in order to ensure the smoothest formation and running of a new business as possible. Fortunately, professional help is available from a variety of experienced sources within our state.
Source: rgj.com, “Better economy gives rise to more startups“, Paul Davidson, July 12, 2014