Philadelphia offers its residents a rich cultural identity, a wealth of historical sites and information, and an affordable urban lifestyle. As such, the city is a great place to own and operate small businesses in many industries. Like many locations, Philadelphia’s small business climate comes with its share of pros and cons. As an entrepreneur in Philly, here are some aspects of business ownership of which to be aware.
You may need to search hard for funding
Most states and cities have programs to fund small businesses. However, in Pennsylvania, business loans may be more difficult to obtain. A trends report published by the Federal Reserve Bank of Philadelphia states, “Small banks also have a much lower percentage of their total loans in commercial and industrial loans, although the decline in commercial lending over the last 30 years has been particularly dramatic at large banks.”
Philadelphia’s location is in close proximity to residents from Delaware and New Jersey, but the city is also located within two hours of New York City and Washington, D.C. Its location makes it a desirable location for businesses in many industries. An article published by Philly Mag titled, “5 Reasons Startups Are Setting Up Shop in Philadelphia,” states, “Philadelphia is a large enough market to compete in a global economy, yet small enough where entrepreneurs will find a close-knit community and support group of business partners and colleagues to foster collaboration and innovation.”
Philadelphia offers a true sense of community
Many Philadelphians are more than willing to support their neighbors, and the City’s small businesses are no exception. The Sustainable Business Network of Greater Philadelphia published a 2015 report titled, “Taking Care of Business: Improving Philadelphia’s Small Business Climate.” In it, the community aspect of small businesses is examined. “Small business owners provide leadership as they join boards, sponsor events and support local efforts to create strong neighborhoods and improve the City. Local business owners support nonprofits with contributions 350 percent greater than non-locally-owned businesses.”
By setting up your startup in Philadelphia, you will be ready to integrate into a close-knit small business community. Your business can take advantage of community pride by incorporating itself within the neighborhood.
This article was written by Alaina Brandenburger for CBS Small Business Pulse.