The Roadmap for Growth is a multi-year initiative of the Greater Philadelphia Chamber of Commerce to engage Mayor Jim Kenney and City Council in a shared agenda to promote economic growth and job creation in the City of Philadelphia.
Guest Commentator: Stephen S. Tang, Ph.D., MBA – President and CEO, University City Science Center and Member, Board of Directors, Greater Philadelphia Chamber of Commerce
What can we work on collaboratively to make Philadelphia the best city in the country in which to do business?
The most important issue for improving the business climate in Philadelphia is improving public education for all students. If we want companies to locate and stay here, then we must provide their employees viable options for their children’s education. Imagine our success in attracting and retaining companies if the majority of students coming out of the School District of Philadelphia were prepared for the 21st century economy. Add a home-grown talent pipeline to the unmatched pool of talent at our colleges and universities, and then we’ll have a winning climate for business, with high-caliber employees at all skill levels. There is no greater issue dragging down our city’s economic potential than the state of our public education system, and all of us – from all sectors of business and government – must work together to solve the problem.
Tax reform is also a crucial part of the equation. The structural tax changes supported by the Job Growth Coalition would go a long way towards improving our business climate, to enable the creation and growth of the early-stage companies that will become the backbone of our future economy.
How can Philadelphia’s business leaders work with the Mayor and City Council to attract more capital investment to spur small business growth?
The best way for the Mayor and City Council to attract more capital investment to spur small business growth is to better support early-stage companies and other small businesses themselves.
Capital investment is becoming increasingly mobile in today’s economy, as investors are finding and funding great companies wherever those companies are located. Here in Philadelphia, Curalate just raised $27 million from a California-based venture capital firm. Sidecar and Picwell both raised significant funding from Boston- led firms last year. And Cloudmine, like more and more firms, closed a $5 million round entirely from local investors, who themselves are seeing impressive growth.
Philadelphia’s startup community gains more national recognition each year as our ecosystem matures and more of our successful companies support the next generation of entrepreneurs. What we really need is the city to support turning more great ideas into great companies, and helping those companies grow and scale.
The Mayor and City Council should increase support for StartUp PHL and other programs to help nurture the city’s startup community. Some tax reforms would also be helpful. Finally, the city should make a concerted effort to include more startups and small businesses in city procurement. Landing an early client like the city or a city agency can help a young company reach the next level of business development or capital investment.
Discuss these and other Questions for the Roadmap at the upcoming policy forum: Mapping Economic Competitiveness on Tuesday, March 29, 2016.
Apparently regarded as the third rail of politics in our city, public education remains our primary obligation and greatest challenge. Providing effective, reliable and equitable education is essential not only to training a modern workforce, but also to maintaining the incredible influx of young professionals who could transform this city – but only if they elect to raise their children here. This will require a core commitment of political and financial support, much more the flash taxes and one-off initiatives offered in recent years. The sooner and better we respond to this once-in-a-generation opportunity, the greater chance we have of renewing a virtuous cycle.