RALEIGH, N.C. -- State Sen. Fred Smith formally entered the race to become North Carolina's next governor on Friday.

Smith, a three-term Republican senator from Johnston County, has expressed an interest for the past two years in succeeding Democratic Gov. Mike Easley, who is barred from seeking a third consecutive term. He's spent that time performing what the contractor and home builder calls "due diligence" on the idea.

"I believe that the experience I've had as both a public servant and in business has prepared me to lead this state," Smith said. "We've got to have a governor who understands that we need to empower people, protect people and trust people, not bigger and more intrusive government."

Smith made his announcement, surrounded by family, friends and co-workers, outside the Borden House at Fletcher Park, a former orphanage where his parents worked and he lived while he was growing up.

"I learned what service to others could mean and it could change lives and how it should make the world a better place," Smith said. "And one day I hoped I could be like them and that I could follow their example."

Smith, who turns 65 next week, joins a Republican field that already includes former Supreme Court Justice Bob Orr and Salisbury businessman and anti-gas tax advocate Bill Graham. The May 2008 primary winner likely will face either Lt. Gov. Beverly Perdue or State Treasurer Richard Moore in the general election.

Smith attended Wake Forest University law school, served in the Army and later became a managing partner in a Raleigh law firm. But he made a name and personal fortune in construction, building middle-class neighborhoods in Wake and Johnston counties and in the wealthy Landfall community in Wilmington. He's chief executive of a company bearing his name as well as a Raleigh asphalt paving firm.

One of the chief proponents of a proposed constitutional amendment banning gay marriage -- opposed by Democratic legislative leaders -- Smith's primary victory likely will depend on whether he can bring together social conservatives and business-oriented Republicans into his camp.

Smith has never run a statewide campaign, unlike Orr, and will have to prove he can raise money from across North Carolina. His campaign committee has relied on his personal finances to build name recognition during the past two years.

Democrats have held the Executive Mansion since 1993. In the past 100 years, Republicans have held the governor's job for only 12.

"Clearly, we have a mountain to climb," Smith said, pledging to work harder than any other candidate.