Philadelphia has committed $5 million to a new grant initiative designed to strengthen Black-owned businesses throughout the city, addressing persistent disparities that have kept entrepreneurship rates below national averages despite a decade of growth. The Philadelphia Small Business Catalyst Fund represents the city’s most ambitious effort yet to create lasting economic opportunities for entrepreneurs of color.
Business ownership lags behind peer cities
Recent analysis by the Pew Charitable Trusts revealed that Philadelphia continues trailing 12 major metropolitan counties in business density, including Baltimore, Denver and New York. The city recorded 111 businesses per 1,000 residents in 2022, marking improvement from 82 per 1,000 in 2012 but still falling short of the national benchmark of 129 businesses per 1,000 residents.
The data exposes a troubling reality for Black entrepreneurs specifically, who have increased their ownership rates over the past decade yet remain disproportionately underrepresented compared to their counterparts in similar urban centers. This persistent gap reflects deeper systemic challenges that extend beyond simple market forces or individual initiative.
Kriston Jae Bethel, who led the research effort, emphasized that improving business ownership fundamentally depends on expanding access to professional networks, capital resources and growth opportunities that allow firms to establish themselves and endure over time. His findings suggest that without addressing these structural barriers, ownership disparities will continue regardless of economic conditions.
Long-term ecosystem building takes priority
Leaders in Philadelphia‘s economic development community recognize that closing racial and gender gaps in business ownership requires comprehensive strategies rather than isolated interventions. Sara Williams, who directs the African American Chamber of Commerce of Pennsylvania, articulated the need to construct a durable ecosystem that extends beyond temporary grants or limited tax incentives…