FLORENCE -- Although the unemployment rate in the Pee Dee rose in January, the state's Department of Commerce received more inquiries than usual from companies interested in possibly locating in South Carolina, according to the state Department of Commerce's chief operating officer.

The Pee Dee does face unique economic challenges, including a jobless rate that climbed to more than twice the state average in January, but the hurdles are not insurmountable, Joseph J. James of the S.C. Department of Commerce said Thursday during the annual Pee Dee Economic Outlook luncheon at Florence Civic Center.

"We've got some challenges here that I think we'll overcome," James said. "But we must be innovative, and we must use all the means available to us."

South Carolina's unemployment rate in January was 6.3 percent, down from 6.7 percent in December.

In addition to decrease in unemployment and the increase in inquiries from companies interested in South Carolina, exports by the state were up 23 percent last year -- another good sign for the state's economy, James said.

The commerce department is working vigorously to recruit new businesses to the state, help existing businesses expand and help develop communities, James said.

"We're a new commerce department," he said. "We're much more of a collaborator, much more of a partnering entity."

Innovation, collaboration and a trained and educated workforce are vital to the state's economic success and growth, James said.

"The most valuable asset in the 21st century is brains," he said. "We cannot always do the same thing better. We must sometimes do things differently."

Before James' speech, Patricia and Steve Taira, owners of Mary's Flowers and Gifts, were presented the Greater Florence Chamber of Commerce's Small Business Person Award.

Thursday's luncheon was sponsored by the chamber of commerce, Anderson Brothers Bank, Bank of America, BB&T, Carolina Bank, Carolina First, First Citizens Bank, First Federal, First Reliance Bank, Florence National Bank, NBSC, Pee Dee Farm Credit, RBC Centura, Sentry Bank & Trust, S.C. Bank & Trust and Wachovia.