Cities across South Carolina are creating business-friendly attitudes that are becoming highly appealing to entrepreneurs. This is evident in reports, data, and statistics we see daily. A recent report from CNBC ranks the state as #27 among the top states for businesses. The categories for this ranking cuts across the workforce, economy, cost of operation, education, and other relevant brackets. This article intends to shed more light on why the state of South Carolina stands out this much for companies and entrepreneurs.
Understanding The Business Environment in South Carolina
CNBC isn’t the only platform with a ranking including South Carolina; Area Development magazine also consistently ranks the state as one of the top 5 places to set up a business. This shows that information circulating on this subject isn’t based on a hunch or opinion but backed by facts. The state’s fast-growing population and manufacturing capabilities have made it a working location for entrepreneurs. The South Carolina market has been ideal for small business owners to cut costs, reach a more extensive audience, and meet their target market. In the very heart of this state lies immense value for enterprises looking to expand and increase their revenue. Here’s why:
Economic Condition
South Carolina’s economy has grown tremendously over the past years. It has a rising population of 5,379,922, which ranks it 10th of 50 states in the U.S. by growth rate. Its economic performances have also matched this increase, as its gross state product (GSP) accumulated to $228.3 billion in 2023, an 18.600% increase over the last five years. The employment rate has grown by 1.2% over the previous five years. Other sectors like rentals, real estate, manufacturing, and scientific and technical services have also contributed to boosting the state to a 41.4% Gross Domestic Product (GDP).
Economic indicators, including employment, foreign exchange, inflation, and wages, typically influence how businesses perform and raise their profit margins. Forex trading, for example, dramatically impacts the rate and prices of imported goods and services. At the same time, economic standing directly influences a country’s currency performance. The financial condition of South Carolina, which has been on the rise lately, has contributed to the positivity of companies and enterprises in the region.
Low-Cost of Operation
One of South Carolina’s top-selling points is its low entry barrier for small businesses and an enabling culture for them to thrive. The state is regarded as one of the most affordable places to set up a business, and this is due to the numerous incentives made available to individuals and corporations. The tax system is reasonable and much lower than that of other regional states. The state also offers statutory tax incentives like:
- No local income tax.
- No unitary tax on worldwide profits.
- No state property tax.
- Affordable corporate income tax structure.
These incentives were introduced as a performance-based rewards system for companies and enterprises to maximize their return on investment (ROI).
Reliable and Affordable Energy
In addition to its low cost of operations, South Carolina has one of the lowest industrial power rates, 5.29 cents per kilowatt hour, which is 30% lower than the average rate in the nation. This has also significantly influenced lowering the cost of operations and allowing businesses to have more to invest in other needs. South Carolina’s energy highlights include:
- Being ranked #3 largest generator of nuclear-powered energy use in the United States.
- Having utilized emissions-free nuclear power since the 1970s.
- Generating over 50 million megawatt hours of energy using nuclear power.
Infrastructure
The temperate and coastal region of South Carolina accounts for about 208 million Americans. This number covers two-thirds of the U.S. population and signifies untouched territory for many businesses. This also allows for a larger target market and pool to tap from. The infrastructure has also grown to accommodate five interstate highway systems, deep water seaports, four primary airports, railways, and 1.5 million high-speed lines connecting these companies to a high-speed internet connection.
Should You Start a Business in South Carolina?
If you’re intentional about growing your business and having access to enabling facilities, then the answer to this is yes. Aside from the points listed above, the state is known for being home to sustainable businesses; the workforce is exceptional due to low labor costs and workforce development programs. Lastly, the state’s educational system is topping the chart with over 160,000 students in different learning capacities. Undoubtedly, South Carolina is one of the most business-friendly environments for people and groups to develop ideas. You can join these change-makers by starting a business management or development course and turn your innovative ideas into reality.