Missed opportunities await in Cary, North Carolina, as small businesses prepare for significant growth by 2025—what challenges lie ahead?
Cary, North Carolina, stands poised for notable small business growth by 2025, bolstered by a robust economic environment characterized by a 2.7% unemployment rate and a highly educated workforce comprising over two-thirds of adults with college degrees. The Raleigh-Cary area is projected to experience GDP growth between 18.3% and 21% over the next decade, suggesting a favorable climate for new ventures. However, entrepreneurs may confront challenges such as regulatory hurdles and workforce retention issues, with 55% of small business owners noting difficulties in filling critical positions, indicating the necessity for strategic adaptation in a competitive marketplace. Further insights on this forecast await.
Cary, North Carolina, boasts a thriving economic environment that's hard to ignore. With a low unemployment rate and strong income growth, Cary ranks third among U.S. job markets in 2024, indicating a robust entrepreneurial landscape ripe for investment opportunities. The town's strategic location enhances accessibility to key metropolitan areas like Raleigh, Durham, and Chapel Hill, thereby expanding the job market and attracting a highly educated workforce—over two-thirds of adults possess college degrees. Additionally, Cary's recognition as one of the best places to live in the U.S. underscores its appeal to families and professionals alike.
Cary's economic stability is bolstered by major industries such as information technology, life sciences, clean tech, and advanced manufacturing, all of which contribute to a diversified and resilient economy. The proximity to Research Triangle Park further amplifies Cary's appeal as a hub for research and innovation, facilitating collaboration among leading firms and educational institutions.
Moreover, the corporate tax rate in North Carolina is among the lowest in the nation, coupled with an affordable cost of living, making the area particularly attractive for entrepreneurs and investors. According to the North Carolina Chamber of Commerce, these factors collectively create a vibrant environment that supports small business growth and fosters sustainable economic development.
In the vibrant business landscape of Cary and the Greater Triangle Area, diversity initiatives are playing an essential role in shaping a more inclusive entrepreneurial ecosystem. The Research Triangle Foundation (RTF) leads efforts in promoting diversity, equity, and inclusion (DEI), evidenced by their 34.1% minority and women-owned business enterprise (MWBE) spending in the Hub RTP project. This commitment extends to ambitious targets, aiming for 27% MWBE participation in operating spend for 2024, thereby setting significant diversity metrics that reflect the region's evolving business priorities.
Moreover, the RTP DEI Collective, comprising over 60 companies and 21 regional allies, amplifies these inclusive practices, fostering collaboration aimed at enhancing organizational culture. The annual STEM RTP Grantmaking Program, which allocated $130,000 in 2024 to organizations that merge STEM with DEI efforts, emphasizes the intersection of innovation and inclusivity. In recognition of these efforts, RTF received the 2024 Leaders in Diversity Award, further solidifying the region's commitment to DEI. Local policies, such as enhanced nondiscrimination ordinances, further solidify the region's welcoming environment, enabling diverse businesses to thrive and engage fully within the community. Such initiatives not only support economic resilience but also enhance community enrichment, establishing Cary as a model for inclusive business growth and sustainable development.
There's a promising outlook for market and GDP growth in Cary, driven by a competitive housing market and a robust local economy. Current real estate trends indicate that homes in Cary are selling after an average of just 26 days on the market, with the median sales price expected to rise by 5.3% from October 2023 to October 2024. Over the next decade, forecasts suggest a remarkable increase in home prices of approximately 24.2%. The uptick in available homes, growing from 246 to 287, further reflects a dynamic housing landscape. Additionally, the total homes for sale in Cary has increased by 16.7% year-over-year, indicating more options for potential buyers.
Economic indicators also support this optimistic forecast, evidenced by Cary's low unemployment rate of 2.7%, notably below both state and national averages. Furthermore, the town welcomed nearly 3,400 new business formations in 2023, which, coupled with a $524 million budget focused on essential services, underscores a commitment to fostering economic vitality. Projections for the Raleigh-Cary Metropolitan Statistical Area suggest a GDP growth of 18.3-21% over the next decade, reinforcing the region's importance in the broader economic framework. The synergy between local government initiatives and the Cary Chamber of Commerce further enhances the community's economic prospects.
As Cary's economy continues to thrive, job opportunities are expanding considerably across various sectors, fueled by a remarkable growth in employment and business formations. In 2023 alone, the town welcomed 3,400 new businesses and added 1,083 jobs, primarily in IT, healthcare, and engineering. This consistent job growth, averaging over the last decade, reflects Cary's increasing appeal as a destination for talent and investment, with businesses contributing $225 million to the local economy.
The Raleigh-Cary area, projected to grow by 18.3-21% over the next ten years, is witnessing significant shifts in workforce demands, particularly in the technology sector, which is anticipated to generate 3,000 new jobs by 2025, focusing on cybersecurity and data science. Healthcare roles are also set to expand dramatically, with statewide projections indicating the addition of 101,500 positions by 2032. In addition, as employers plan to hire 7.3% more recent graduates compared to last year, the job market is increasingly competitive, especially in tech occupations where the average starting salary for software developers reaches approximately $108,000 annually.
Cary's small business landscape faces several forecast challenges and risks that could hinder its growth trajectory. Regulatory hurdles, including high impact fees and stringent codes, not only add complexity but also inflate operational costs, discouraging new entrants. According to the Cary Chamber of Commerce, nearly 40% of local entrepreneurs cite permitting processes as a significant barrier to development. In addition, the need for a more business-friendly model is critical, as overly restrictive ordinances can stifle innovation and delay project timelines, ultimately affecting the tax base sustainability.
In addition to regulatory obstacles, workforce retention remains a pressing concern. The post-pandemic labor market has exacerbated difficulties in hiring and maintaining skilled employees, with a recent study indicating that 55% of small business owners struggle to fill critical positions. This shortage, coupled with rising costs driven by a competitive socio-economic landscape, complicates expansion efforts. As Cary competes with nearby cities for investment, balancing economic growth across various sectors, particularly industrial and light manufacturing, becomes essential for mitigating risks and fostering a resilient business ecosystem.
In conclusion, while Cary, North Carolina, is poised for promising small business growth by 2025, underscored by a projected GDP increase of 3.2% and significant job creation, potential headwinds remain, including market saturation and evolving regulatory environments. As noted by the North Carolina Chamber of Commerce, fostering a resilient business ecosystem will require maneuvering these complexities adeptly. Consequently, stakeholders must stay vigilant, adapting strategies to mitigate risks while seizing the opportunities that arise in this dynamic economic landscape.
