New Northeast Philly Small Business Development Center

On July 12th Congressional Representatives Allyson Schwartz (D-13) and Patrick Murphy (D-08) issued a joint press release that read in part:

Today, Pennsylvania Representatives Allyson Schwartz (D-13th District) and Patrick Murphy (D-8th District) and proudly announced federal funding for a Small Business Development Center in Northeast Philadelphia. The Small Business Development Center will be located at the Northeast Philadelphia campus of the Community College of Philadelphia. It is expected to be an economic engine for Northeast Philadelphia and lower Bucks County, providing training and resources for locally owned small businesses. Reps. Murphy and Schwartz announced that the Development Center would receive $231,000 in federal money. This money was approved by the house with the passage of the Financial Services Appropriations bill in June.

"This is a great win for Northeast Philadelphia. Small businesses are the lifeblood of our nation's economy and I am proud to have worked to secure these funds for the Community College of Philadelphia. This Center will be an outstanding asset for the entire region," said Congresswoman Allyson Schwartz.

"I am very proud to support the Small Business Development Center. With these resources it will give the economy in Northeast Philadelphia and lower Bucks County a much-needed boost," said Congressman Patrick Murphy. "Small businesses keep our economy strong and this Center will help those small business owners make the right choices and get the right help to make their businesses a success."

According to the Small Business Administrations’ Pennsylvania page, 98.4% of the employer businesses in the state were small firms (fewer than 500 employees). In 2003 these small businesses provided 2,513,875 jobs in the state and employed half of the non-farm private sector workforce. Small non-farm businesses’ income increased to $35.8 billion in 2005. Small businesses also provide opportunities for demographic groups that, historically, have not flourished in corporate America. Roughly one third of the self-employed in 2004 were women. In 2002 26% of the state’s small businesses were owned by women. Small businesses owned by African-Americans generated $2.1 billion in receipts.

Pennsylvania has 18 university-based small business development centers. Their mission:

The Pennsylvania SBDC provides consulting services and educational programs to entrepreneurs looking to start or grow a small business. SBDC consultants work with entrepreneurs in one-to-one sessions to help test a new business proposition, shape a business plan, or investigate funding opportunities. Addressing topics ranging from compliance issues to marketing tactics, SBDC programs serve to inform and assist entrepreneurs with the many tasks a new business owner faces.

Too many people decide to start up a business without the kind of planning needed for longevity and success, or without the funding needed to get off the ground. Of the clients helped in 1996 or 1998, 80% were still in business in 2004, a significantly higher percentage than the success rate of new small businesses generally (PASBDC).

There are three existing small business development centers in the region, at Temple, Wharton (U Penn), and Widener Universities.

The new center in Northeast Philadelphia will have a slightly different focus and also provide job skills training. According to an article in the Northeast Times (“CCP business center to get federal funding,” by Lauren Fritsky 7/19, see archives on website):

The center also connects with efforts to revitalize Northeast business corridors like Frankford and Torresdale avenues and the development along the Delaware River waterfront. Schwartz, a sophomore congresswoman, has secured more than $21 million for those undertakings.

"Of course this is part of a broader commitment to the business atmosphere," she said. "There is a lot of important, good work going on. We’re seeing the revitalization in the Northeast area…we want to work with our businesses to make sure they thrive."

The small-business development center will also include a conference center to provide short-term training opportunities and meeting space for more than 3,000 local businesses. The college also plans to collaborate with the Greater Northeast Philadelphia Chamber of Commerce to design programs.

The college will also be revamping existing and creating new associates degree programs in areas where there is high demand for employees and a lack of training programs in the area.

I wish the new venture well and hope that it provides a long-term boost to the economy of the area.