LINCOLN, Del.- A Republican businessman is entering the race for governor of Delaware.

Jeff Cragg launched his campaign at events in Sussex County on Tuesday, including one attended by about 40 people in Lincoln. Other stops took place throughout the state.

The early campaign theme: jobs. Standing in front of a yellow and black banner with the number 30,611 - the most recent number of Delawareans unemployed - Cragg said the state needs to reduce regulations and lower taxes to create jobs.

"We need to create an environment that business owners, job creators, can create jobs again in this state," said Cragg, of Brandywine Hundred.

Cragg owns a Mailboxes Etc franchise and real estate in the Wilmington area. He previously served as co-chair of the New Castle County Republican Party and ran for insurance commissioner in 2004.

While Cragg has a message, he will need votes and money to defeat incumbent Gov. Jack Markell, a Democrat.

Registered Democrats outnumber registered Republicans by more than 110,000 in Delaware, according to 2010 registration records.

Markell has already banked about $1.4 million in campaign funds, according to state campaign finance reports filed in January. Cragg declined to go into details about raising money.

"I'm not concerned about fund raising," Cragg said. "I think the governor has a great war chest but we're going to have enough money to engage the governor on the issues and I think he's going to have his hands full."

In a statement, Markell advisor Brian Selander said, "There will be plenty of time for campaigning in the fall. Right now, the governor is doing the work of getting people back to work and strengthening our schools."

Milford businesswoman Sher Valenzuela announced her candidacy for lieutenant governor. She has not run for office before. Valenzuela said her campaign would focus on quality of life, crime and education. The Republican will likely face Democrat incumbent Lt. Gov. Matt Denn.