From the Desk of the County Manager - July 25, 2025

From the desk of the County Manager,
Small businesses comprise one of the most important components of our nation’s economy as over 61 million Americans are employed by small businesses, representing nearly half of the nation’s workforce. North Carolina alone is home to one million small businesses and the State continues to be a growing hub for entrepreneurship and local business development. These companies play a major role in the state’s economy; in 2021 alone, they generated nearly $160 million in state revenue.
Durham, one of the state’s key economic hubs, has an estimated 20,000 to 23,000 small businesses – defined as firms with fewer than 50 employees – which account for more than 80% of all businesses in the city. In 2023, Durham ranked as the third-best place to start a business among the nation’s 100 largest metros. However, the COVID-19 pandemic created significant challenges for small businesses in Durham County, as it did for small businesses nationwide, including revenue loss, staffing shortages, and permanent closures. Within the first six months of 2020, over 9.1 million small business jobs were lost. In North Carolina, small business sales dropped by more than 20% between January and April 2020.
In response to the severe economic impacts of the pandemic, President Joe Biden signed the American Rescue Plan Act (ARPA) in 2021. As part of this legislation, the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) distributed $350 billion to state, local, territorial, and tribal governments. Through the SLFRF program, Durham County received an allocation of $62,445,275. Recognizing the critical role small businesses play in our community’s recovery, the Durham Board of County Commissioners directed the County to allocate $2.25 million of these funds toward a Small Business Grant program. This investment was used to supports two key initiatives that provide training, technical support, and access to funding opportunities for Durham’s small businesses and entrepreneurs: the E3 Durham project administered by Forward Cities, and the Durham Rising project administered by Knox St. Studios.
Now, I’d like to show you how those partners have helped here in our community!
E3 Durham
The first County Small Business Grant funds the E3 Durham (E3D) initiative, led by Forward Cities (FC)— a national nonprofit with deep roots in Durham’s entrepreneurial ecosystem. This $1.5 million investment supports small businesses affected by the pandemic through a community-informed model that includes a strategic plan for growth of the County’s small business ecosystem, a “learn to earn” (L2E) program, cohort accelerators, and expanded access to capital and professional services. E3D has also established a downtown hub for business activity and engages a broader set of organizations and service providers to level up support for the entrepreneurs who need it most.
Since July 2024, FC has provided 246 hours of E3D navigation support and currently has 238 active clients. Through the Learn-to-Earn (L2E) Program, 500 entrepreneurs have been awarded 2,700 credits for education and networking services, redeemable for up to $2,000 in subsidized professional services. FC continues to recruit entrepreneurs into the system for front-end assessment and enrollment into the E3D program where they can access existing resources, networking events, and referral to service providers. You can read more about FC and the E3D project by visiting their website at: https://forwardcities.org/.
Durham Rising
Durham County awarded the remaining $750,000 of ARPA Small Business Grant funds to Knox St. Studios (KSS) to support its Durham Rising Initiative, aimed at building a comprehensive, sustainable support system for qualifying small businesses. In partnership with Forward Cities and in alignment with FC’s E3 project, Durham Rising supports start-ups and growth-stage businesses by providing access to skill-building programs, capital, and trusted advisors, while proactively identifying and prioritizing those most in need.
Since May 2024, KSS has implemented several impactful skill-building programs. Its 14-week Launch Lab accelerator delivered 196 hours of technical training, helping early-stage entrepreneurs develop a prototype, identify customer personas, and explore AI-driven growth strategies. KSS also facilitated an 8-week scale-readiness incubator, providing 120 hours of programming on venture capital, growth capital, and succession planning for established businesses. In addition, KSS has hosted three Tech Skills Workshops, engaging over 200 small business owners, investors, and industry leaders. Topics for the workshops have included “Prototyping with AI” and the “Path to be a VC.” KSS is planning an additional three workshops in collaboration with American Underground Durham and Grepbeat. To learn more, visit https://www.knoxststudios.org/.
Small businesses are the heart and soul of our Bull City—fueling its vibrant culture, art, food, and music—while also driving local economic growth and opportunity. Durham County values its collaboration with local nonprofits, entrepreneurs, and community partners to support a business landscape rooted in resilience, innovation, and opportunity. Together, we remain committed to ensuring Durham is a place where small businesses and the leaders behind them can thrive.
Until next week...
Claudia Hager | County Manager