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.
"When the pandemic hit, [20]20, it just took off like a bottle rocket. It was unbelievable," Marshall said in an interview Thursday.
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.
"North Carolina is one of the fastest growing states in the country. Since the last census, only Texas and Florida have added more people," Gov. Josh Stein told reporters. "A lot of people move here because they have a job with a new company. Other people move here because this is a place of opportunity."
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 a 'leading indicator' for local GDP growth
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.
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.
