South Carolina, January 18, 2026
As South Carolina enters 2026, the small business community is experiencing positive growth and innovation. Entrepreneurs are optimistic about hiring and expansion opportunities. With supportive policies and initiatives aimed at deregulation and financial relief, small businesses can thrive despite challenges. The state’s economy is projected to grow, and programs focused on fostering entrepreneurship and innovation are in place, offering assistance and resources to help businesses succeed in the evolving landscape.
WHAT’S HAPPENING
What is the general outlook for South Carolina’s small businesses in 2026?
Expect a largely positive outlook, driven by resilient entrepreneurs and supportive policies, with many business owners planning for growth and hiring opportunities.
How are federal and state governments supporting small businesses in South Carolina?
Both federal and state governments are reducing burdens through deregulation efforts like the SBA’s task force and SC’s proposed “Small Business Regulatory Freedom Act,” alongside offering federal tax incentives.
What tax incentives are available to South Carolina small businesses?
Access federal tax incentives including a 25% qualified business income deduction, as well as provisions allowing businesses to write off new equipment, assets, and research and development expenses.
How is South Carolina fostering innovation and entrepreneurial growth?
The state is fostering growth through programs like the Relentless Challenge grant, which dedicates $1,000,000 to support businesses, and resources like Small Business Development Centers (SBDCs).
What is South Carolina’s stance on the emerging AI frontier for businesses?
South Carolina is actively discussing AI regulation, with legislative efforts supporting AI development (Bill 225) while a House committee works to safeguard the digital environment responsibly.
SC Businesses in 2026: Innovation, Opportunity, & Growth
As 2026 unfolds, South Carolina’s small business community stands poised for a period of continued growth and innovation, driven by resilient entrepreneurs and a supportive policy landscape. This year brings both opportunities and evolving challenges, encouraging local businesses to embrace forward-thinking strategies and leverage available resources to thrive.
The spirit of ingenuity and dedication among South Carolina entrepreneurs is a cornerstone of the state’s economic vitality. With a focus on fostering environments where businesses can flourish with minimal impediment, the outlook for small enterprises across the state, including in vibrant areas like Myrtle Beach, remains optimistic for the year ahead.
Optimism Amidst Economic Currents
The sentiment among South Carolina’s small business owners for 2026 is largely positive, with many anticipating opportunities for hiring and expansion. Tyler Teresa, the Small Business Regional Administrator for the Southeast, observes widespread optimism from business owners in the region, including South Carolina, who are actively planning for growth.
South Carolina’s economy maintains a healthy forecast for 2026, building on moderate growth despite a slight slowdown observed in 2025. Economists from the University of South Carolina project moderate job growth for the state, alongside an anticipated uptick in business investment nationwide, which bodes well for South Carolina’s economic development. A key factor influencing the state’s economic momentum this year will be inflation.
Fueling Growth Through Deregulation and Tax Incentives
Both federal and state initiatives are aiming to reduce administrative burdens and provide financial relief to small businesses. Nationally, the U.S. Small Business Administration (SBA) has established a deregulation task force to identify and remove federal overreach in various sectors, including manufacturing, home building, healthcare, and food supply. This initiative seeks to simplify the operating environment for entrepreneurs by reducing restrictive regulations.
Federally, tax incentives are available that can significantly benefit South Carolina small businesses. These include a 25% qualified business income tax deduction, as well as provisions allowing businesses to write off new equipment, assets, and research and development expenses. These measures are designed to help businesses plan for future hiring and growth.
At the state level, South Carolina legislators are considering the “Small Business Regulatory Freedom Act” (Bill 254) during the 2025-2026 session. This proposed legislation aims to reduce the overall regulatory burden on businesses by 25% and implement sunset clauses for regulations, meaning their authority would expire after three years unless updated. The bill also mandates cost-benefit analyses for new regulations, with assessment reports publicly available to ensure transparency.
The Power of South Carolina’s Entrepreneurial Spirit
South Carolina’s entrepreneurial landscape is robust and dynamic, with small businesses forming the foundation of the state’s economy. In the first quarter of 2025, nearly 70% of all businesses in South Carolina employed fewer than five people. Over a decade, from Q1 2015 to Q1 2025, the number of businesses with fewer than five employees experienced significant growth, increasing by 96.5%. Between March 2023 and March 2024, small businesses, defined as those with fewer than 500 employees, constituted 99.4% of all businesses in the state, adding over 25,000 net new jobs and collectively employing more than 863,000 residents.
This vibrant growth is supported by a strong culture of innovation. The South Carolina Department of Commerce’s 2026 Relentless Challenge grant program is dedicating approximately $1,000,000 to support both traditional small businesses and innovation-driven companies, fostering statewide problem-solving and entrepreneurial impact. Initiatives like SC Innovation Awareness Month further highlight the state’s thriving tech and innovation ecosystem, celebrating cutting-edge ideas and collaboration across government, academia, and entrepreneurial sectors. Resources such as the Small Business Development Centers (SBDC) are available statewide, providing crucial assistance with business planning and marketing to help new ventures succeed and existing ones expand.
Navigating the AI Frontier: Innovation and Prudent Policy
The emergence of artificial intelligence (AI) is a significant topic for businesses and policymakers alike in 2026. Discussions regarding AI regulation are underway at both federal and state levels. While a federal executive order has aimed to preempt state AI legislation to promote a national standard, some South Carolina legislators advocate for the state’s right to implement its own AI regulations.
In the 2025-2026 legislative session, the South Carolina Senate introduced Bill 225, expressing support for AI development within the state and opposing censorship or bias that could hinder technological advancements. Concurrently, the House Standing Committee on AI and Cybersecurity is actively working to safeguard the digital environment while creating an economic climate where AI and other emerging technologies can responsibly thrive. This balanced approach seeks to harness the benefits of AI innovation while addressing potential concerns.
Access to Capital: Empowering Local Ventures
Access to funding remains a critical component for small business success, and South Carolina entrepreneurs have various options available. State and national grants, such as the SC Department of Commerce Export Incentives, Catalyst Grant, America’s Seed Fund, and the U.S. Small Business Administration State Trade Expansion Program (STEP), provide valuable capital without requiring repayment. The SBA also supports businesses by guaranteeing bank loans, helping entrepreneurs secure the necessary capital to launch and grow their ideas. Overall, South Carolina allocates substantial government funding to bolster its business sector.
Key Features for South Carolina Small Businesses in 2026
| Feature | Description | Scope |
|---|---|---|
| Optimistic Outlook | General positivity among business owners, with plans for growth and hiring. | State-level |
| Tax Incentives | Federal deductions for business income, new equipment, and R&D expenses. | Nationwide (impacting State) |
| Deregulation Efforts | SBA task force working to reduce federal overreach and regulatory burdens. Proposed state “Small Business Regulatory Freedom Act.” | Nationwide (impacting State) & State-level |
| Entrepreneurial Growth | Significant growth in small businesses, especially those with fewer than five employees, contributing to job creation. | State-level |
| Innovation Support | Grant programs (e.g., Relentless Challenge), SBDCs, and a thriving innovation ecosystem. | State-level |
| AI Legislation Discussion | Debate and legislative efforts at federal and state levels regarding AI regulation and fostering technological growth. | Nationwide & State-level |
| Access to Capital | Availability of various state and federal grants, as well as SBA-backed loan guarantees. | Nationwide & State-level |
Conclusion
The landscape for South Carolina small businesses in 2026 is marked by an undeniable spirit of resilience and a robust environment for entrepreneurial innovation. From proactive efforts to reduce regulatory burdens and provide crucial tax incentives to dedicated state programs fostering growth and access to capital, the foundation for success is strong. As discussions around emerging technologies like AI continue to evolve, leaders are working to ensure a framework that supports innovation while protecting citizens. The continued growth of small businesses in Myrtle Beach and across the state remains central to South Carolina’s economic prosperity.
We encourage our readers to support their local businesses, engage with community development initiatives, and stay informed about the policies shaping our economic future. Your involvement strengthens the fabric of our communities and empowers the South Carolina entrepreneurs who are building tomorrow’s economy.
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Author: STAFF HERE MYRTLE BEACH
The HERE Myrtle Beach Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Myrtle Beach community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Myrtle Beach Our team includes lifelong Myrtle Beach residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent developments along the Grand Strand, Myrtle Beach’s tourism and hospitality industry, and growth in local education sectors (e.g., Coastal Carolina University programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Myrtle Beach Area Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
