Many businesses begin with an idea followed by a vital question: Is this idea feasible? 

In North Carolina, there are 58 Small Business Centers (SBCs) — one at each of the state’s community colleges — dedicated to helping people answer this question. 

In 2025, there were 1.1 million small businesses in North Carolina, accounting for 99.6% of businesses across the state. These small businesses employed over 1.8 million people, which makes up 44.2% of the state’s private-sector workforce, and they contributed to the creation of 52,820 jobs in 2024, underscoring the vital role small businesses play in the state’s economy and labor market.

SBCs support these small businesses by providing no-cost counseling, training, and technical assistance to entrepreneurs and small business owners at any phase in the business cycle. One SBC director, responding to an EdNC survey, described the centers as “the first welcoming place where everyday people can explore a business idea without feeling embarrassed, overwhelmed, or dismissed.”

To document the landscape of SBCs in North Carolina, EdNC conducted an online survey from March 12 to April 2, 2026. In the survey, 30 SBC directors answered questions about opportunities and challenges facing their center. Follow-up interviews were conducted with Anne Shaw, director of the Small Business Center Network, and SBC directors at Southeastern Community College and Surry Community College.

This article explains what Small Business Centers are, describes the role they play in local economies, and highlights challenges directors face that limit their ability to meet demand.

What are Small Business Centers?

Each of North Carolina’s 58 community colleges houses a Small Business Center, forming a statewide network that helps individuals translate their business dreams into reality. Together, these centers make up the Small Business Center Network (SBCN), which is housed within the N.C. Community College System (NCCCS). 

SBCs provide counseling, training, and technical assistance to entrepreneurs at every stage of the business cycle, ranging from individuals exploring potential ideas to established businesses looking for growth opportunities. 

“When they come to us, they’re bringing their precious dream, and it is a privilege to help them build that out, plan it, nurture it, grow it, and turn that dream into the reality of a business that is … really adding to the richness of a community,” said Shaw.

While SBCs are funded by the NCCCS and housed within individual community colleges, they are not just an on-campus program. Instead, SBCs are community-facing, meaning they are designed to serve the broader public. The services SBCs provide are free and available for anyone in the state of North Carolina, and SBCs primarily serve members of the public who may not have an existing connection to the community college, Shaw said.

Services provided

No matter what kind of idea you’ve got, we can help you get that business off the ground.

— Anne Shaw, SBCN Director 

All SBCs offer a core set of services focused on the fundamentals of entrepreneurship, including guidance on how to start a business, manage finances, market products, and navigate taxes and administrative burdens. Demand for different services vary by SBC, and survey respondents identified startup guidance, marketing, financial management, and business development as their most common service areas. The SBCN aggregates training opportunities across all SBCs on its website.

While SBCs provide a wide range of services, Nathan Moore, director of the SBC at Southeastern Community College, said the most impactful work happens beyond workshops and training. Through one-on-one counseling, SBC staff work directly with clients to evaluate ideas, troubleshoot challenges, and guide decisions over time, and Moore views this as one of the most effective services.

SBCs are often misunderstood as “just a training program,” he said, when in reality, they support businesses from conception to fruition.

Funding sources

SBCs are primarily funded by the General Assembly through the N.C. Community College System. At minimum, the base allocation for each SBC supports salary and benefits for one full-time Small Business Center director and $9,000 for instructional costs. 

In addition to this base allocation, SBCs can receive additional performance-based funding, which is determined via six metrics.

These measures include the number of businesses started, number of jobs created, number of jobs retained, number of counseling clients, number of counseling hours, and the number of small businesses in the service area. This funding model ensures baseline access to funding across all SBCs while simultaneously rewarding centers for generating positive economic outcomes and providing more funding for centers in geographic areas that serve more small businesses.

In 2024-25, total state funding for SBCs was roughly $10 million.

Some SBCs supplement state funding with local college funding, grants, or donations; however, these secondary sources often make up a small portion of funding, with most SBCs relying primarily on state allocations.

Of the 30 SBC directors EdNC surveyed, 17 SBCs said they receive funding beyond the state allocation, and most of those respondents said additional funding made up less than 10% of total funding. Therefore, most centers rely heavily on state funding, which determines their capacity and the scope of services they are able to provide.

Staffing structure 

Most SBCs operate with limited staff, often employing just one full-time director. The base funding provided by the state ensures salary and benefits for a full-time director.

However, Shaw’s vision of an ideal SBC staffing model would include a full-time director, a program assistant, and access to business counselors who are either part-time or contracted.

“It just seems like there’s never enough capacity to meet the needs of all the business owners that are calling in and emailing and dropping in, stopping by to get the help that we provide,” said Shaw.

Of the 30 SBC directors EdNC surveyed, 18 SBCs reported having only one full-time equivalent employee, with an average of 1.33 staff per center. Many directors expressed challenges with current staffing capacity, as they are often required to take on multiple roles to balance counseling, programming, outreach, and administrative responsibilities.

Common misconceptions

One of the most common misconceptions is that Small Business Centers are the same as the Small Business Administration (SBA), at least in terms of services offered; however, they are distinct.

The SBA is a federal agency that offers “counseling, capital, and contracting expertise” to small businesses. They are the only national agency with a specific focus on small businesses, and unlike SBCs, they have the capacity to offer funding for small business owners.

Of the 30 SBC directors EdNC surveyed, one-third said that entrepreneurs seeking their services commonly expected them to offer financial support, such as grants or loans, which SBCs do not provide. Instead, SBCs can help clients access capital by connecting them to financial institutions or individuals who can help and by providing one-on-one guidance and counseling.

Across interviews and survey responses, several other misconceptions about SBCs were identified. SBC directors shared that people often believe that SBCs are only for startups, are only available to community college students, and only offer training programs.

Directors described these misconceptions as understating the scope of their work. In reality, they said SBCs are community-based support systems working to provide ongoing, individualized guidance to entrepreneurs and small business owners. Survey respondents described SBCs as “boots on the ground,” “acting as a high-stakes consulting firm for the underserved,” and “the collective brainpower of the entire state” within their communities.

“Small Business Centers are economic development engines, not just class providers,” said Moore. “We measure success by how many businesses survive, grow, and create jobs.”

The impact of Small Business Centers

The impact of SBCs is traditionally measured via the number of businesses started and the number of jobs created or retained. Directors expressed that much of their work takes place well before those outcomes as they are involved in facilitating conversations, initiating referrals, and cautioning risky decisions throughout the entire business development process.

For Moore, fulfilling these duties involves supporting both economic and community development. On any given day, Moore said he may meet with county leaders about planning and zoning, counsel a business owner looking to expand without taking on additional debt, or connect a prospective entrepreneur with local partners. 

“Economic development starts with something as simple as a trusted conversation right here at the community college,” he said.

Fostering community connections

SBCs often bridge relationships between entrepreneurs and organizations that support business growth. Shaw said that centers work with chambers of commerce, banks, accountants, the North Carolina Department of Revenue, the Secretary of State’s office, the federal Small Business Administration, the federal Small Business and Technology Development Center, and other state and local partners. The goal, according to Shaw, is not to duplicate services, but to help entrepreneurs access the right resources at the right time. 

At Surry Community College, the SBC recently relocated from campus to a coworking space in downtown Mount Airy called InterWorks. This move has made the SBC more visible to the public, said Lesa Hensley, director of the Surry Community College SBC.

Prior to relocation, Hensley said, the center was located in a classroom building on campus, where it saw less walk-in activity. Since moving downtown, she said more people have dropped in and more community members have become aware that the center’s services are available to anyone. 

“This is my home base, but I’m still out and about in the community. It’s just brought awareness to the Small Business Center,” she said of the relocation. “I’ve been doing it, and it’s been around for a long, long time, and there’s people (who say) ‘I had no idea that you offered these free classes and counseling.’”

Survey responses emphasized that where SBCs are located, how visible they are, and how connected they are to local partners can shape awareness of and demand for services among entrepreneurs.

Serving rural communities

Several directors emphasized how essential SBCs are to rural communities, in particular, as these areas often have fewer places for entrepreneurs to turn to for no-cost business support.

In Columbus County, Moore said, small business support comes in many forms due to the diversity of income and needs. Small businesses “may be a family farm … it might be a tradesperson hiring their first employee, or some big main street storefront,” each of which require tailored approaches. Collectively, these small businesses sustain the local tax base and better their communities.

Additionally, Moore said the community college is often the most trusted institution in rural communities, positioning the SBCs in a space where individuals may already turn to seek support.

“That’s why the work of the SBC matters so much in rural North Carolina,” Moore said. “When you think about the 58 community colleges, all the SBCs are helping families create stability, because every job matters in … our community.”

This theme was also present in survey responses. One SBC director wrote: “Because rural small businesses can’t afford $250/hour private consultants, SBC directors often have to act as CFO, Marketing Director, and Operations Manager all at once.”

Hurricane Helene response

SBCs also provide support in times of crisis, such as following an economic or natural disaster. As covered in EdNC’s playbook on Hurricane Helene recovery, SBCs played a pivotal role in  supporting western North Carolina businesses after the storm, providing disaster counseling and aiding business owners in navigating recovery challenges.

This support included guidance on insurance claims, loss assessments, rebuilding financial records, marketing, and applications for grants and recovery loans to replace inventory and restore damaged property. Some SBCs also helped businesses secure temporary working-spaces in cases where their physical locations had been destroyed.

Examples of recovery initiatives led by SBCs include:

These responses highlight the flexible support SBCs can provide in times of need and their economic impact on local communities.

Impact and outcomes

To track the impact of SBCs, every training, counseling interaction, and client note is recorded in the SBCN’s client management system, allowing the network to report how state investments are being used.

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In fiscal year 2024-25, SBCs impact across the state included:

• 7,339 jobs created or retained
• 902 business startups
• 16,132 counseling hours provided to 6,683 total clients
• 4,345 training events with 44,043 total attendees

According to an SBCN 2024-25 economic impact analysis shared with EdNC, the network reported an estimated $440.5 million in total economic impact, with each state dollar invested in SBCs generating roughly $44 in statewide economic activity. 

While these numbers help quantify the network’s impact, some directors said they do not entirely capture the scope of SBC work. For example, Moore expressed that current reporting often misses how centers support workforce pathways, student entrepreneurship, trades-to-ownership pipelines, and local collaboration with chambers and economic developers.

“We’re a huge, strong engine of local prosperity that connects to every other area,” Moore said. 

You can read success stories about the impact SBCs have on businesses in this awards announcement.

Stories from Small Business Centers

Challenges facing Small Business Centers

Even as SBCs work to serve their communities, challenges remain. In survey responses and interviews, directors expressed challenges related to funding and staffing, access to capital for small businesses, and awareness and demand, all of which impact how much support centers are able to provide.

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Funding and staffing

In EdNC’s survey, 17 of 30 SBC directors identified funding as one of their center’s biggest challenges, with directors saying that funding constraints hinder their ability to hire staff, contract with field experts, attend professional development, market services, and respond promptly to all client needs. 

Shaw said the SBCN is grateful for the state’s current investment, as their impact and success would not be possible without this support; however, she said that additional funding would help centers better meet existing demand.

“Do we need more money? We absolutely do need more money, and that’s mainly because we have people standing in line to get our service,” Shaw said. “It’s difficult to meet all the need that’s out there.”

Funding limitations are closely related to staffing constraints, as it requires money to hire employees, and state funding only covers a single, full-time director. In EdNC’s survey, 14 directors identified staffing as one of their biggest challenges, and 18 centers reported only having one full-time equivalent employee. Shaw’s ideal staffing model, as aforementioned, would include a full-time director, a program assistant, and access to a part-time or contracted business counselor. 

One survey respondent described themselves as “one person with an entire center to run,” as they are responsible for clients, partnerships, programming, and other duties, making it difficult to build capacity. 

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This sentiment was echoed by Moore, who said additional administrative support would allow him to spend more time on the ground with businesses and community partners. Without that support, directors must balance direct client engagement with follow-up work, outreach, and administrative responsibilities.

Access to capital for small businesses

In EdNC’s survey, 29 of 30 SBC directors identified access to capital as an emerging need for small business owners.

SBCs do not provide direct funding for small businesses; instead, they help entrepreneurs understand their financing options, prepare for loan applications, and connect with lenders and partners.

This can create a mismatch between business readiness and available capital, specifically in rural communities. One survey respondent describes the impact of limited access to capital, saying, “a Tier 1 county means local entrepreneurs often lack the personal collateral or high credit scores required by traditional banks. This creates a ‘bottleneck’ where the SBC can provide the knowledge, but the local financial ecosystem lacks the liquidity to move those businesses from the planning phase to launch.” 

Moore and other survey respondents echoed this concern. Many clients approach SBCs looking for grants. However, Moore said, “there isn’t some secret bucket of money” dedicated to for-profit companies. To address this gap, directors help clients think carefully about available financing options and their associated risks.

Awareness and demand

In EdNC’s survey, 20 of 30 SBC directors identified awareness of services as one of their center’s biggest challenges. 

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Lack of awareness can limit who receives support, especially when community members believe SBCs are only for students, only support startups, or only provide workshops. For example, several directors said that they often have to explain to community members that the SBC’s  services are free to any member of the public and that services are available to both established and startup businesses. 

At the same time, some directors also reported increasing demand for their SBC’s services. At Surry Community College’s SBC, Hensley said the relocation off campus has increased demand and awareness. Hensley also highlighted professional development programs for SBC directors as important opportunities to increase awareness and impact.

Hensley was recently certified to teach a “Pitch It” program, and she now leads an eight-week class for 16 entrepreneurs that guides participants through marketing, business plans, financials, break-even points, and market research. She said that certifications and training, like “Pitch It,” allow directors to bring higher-quality services back to their communities, attracting more clients. However, training and conferences come with a cost, which can create barriers for some SBCs.

Other barriers

Directors also highlighted other challenges such as physical space limitations, administrative burdens, technological advancement, and finding collaborative partners and field experts. While not as common as the aforementioned barriers, these challenges can impact the daily function of centers, as they can reduce responsiveness, limit counseling capacity, make outreach more difficult, and constrain opportunities for specialized support.

Looking ahead

North Carolina’s Small Business Centers play a critical role in helping entrepreneurs start and sustain businesses, navigate challenges, and connect with resources, supporting individuals and the communities they serve.

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Across EdNC’s survey and interviews, directors expressed that they need more funding, more staff, broader awareness, and stronger access to capital for small business owners to better meet the needs of local business owners. These needs are particularly vital in rural communities where the local SBC may be one of the few places aspiring and established entrepreneurs can turn for no-cost guidance.

“In a rural county like Columbus, this impact is deeply personal, because one successful business can support an entire family and sometimes multiple generations,” said Moore.

For Shaw, the growing demand facing SBCs highlights both a success and a challenge. 

“When you’re good at what you do, you get more to do,” she said. “But at some point, you’ve got to have some help to keep delivering on those promises.”

Laura Couch

Laura Couch grew up in Elkin, North Carolina, and holds a master’s degree in public policy from the University of North Carolina at Chapel Hill. 

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Before completing her master’s degree, Laura studied public policy, English and comparative literature, and health and society at UNC-Chapel Hill. There, she was a Southern Futures Fellow, worked as a graphic designer for the Daily Tar Heel, and completed an individual capstone in public policy.

With a strong passion for education and health policy, she is dedicated to creating and supporting ethical policies with communities, rather than for them. 

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