April 30, 2019
Philadelphia Business Climate
By Achim Neumann
The City of Philadelphia, one of the largest cities in the US, is a significant market for budding entrepreneurs and job seekers because of its potential to flourish economically in the coming years. The city is neither flaming hot nor frozen but growing at a slow and steady pace ever since 2008, when a lot of other cities have invested way to soon without the proper infrastructure, laws, training, etc., to make things last long term.
The growth of the young adult population in the city is considered as one of the many positive signs that hold the key to the city’s bright future. It is among the largest cities in the country and in the race for accommodating new residents and jobs.
- Conveniently Located on the East Coast
The regional market of Philadelphia represents $1.5 trillion of the GDP of the country. With state-of-the-art international and domestic airports, high-speed trains and good highways, ease of movement is a big factor in a major city. While traffic affects it like any metropolis, it’s incomparable to places like New York City, Los Angeles, and Miami. Philadelphia is also home to the largest freshwater port – The Delaware River Port Complex and the only port in the US with 3 Class-I railroads.
- All-purpose Tax Policy
The various tax incentive strategies and exemptions developed by the State and local government make the business business tax structure of the city much lower than other major cities. The tax expenditure structure of Philly is separated into two different parts – one is to encourage companies to take decisive measures like hiring more staff, investing in neighborhoods, etc.; and the other are industry-wide exemptions to provide special treatment to particular business sectors that have the potential for growth.
- Large Customer Base
While much of the country is still recovering from the recession of 2008, several initiatives have been enacted to assist health, IT startups, and emerging businesses to grow. Being centrally located between the two major business hubs of Washington D.C. and New York City, Philadelphia is located in a very strategic location on the eastern seaboard. The Philadelphia Ballotpedia states that the city is the center of the Delaware Valley Metropolitan Area and is easily accessible to the residents of Delaware and Southern New Jersey as well, creating what is known as the Tri-State area.
- An Educated and Skilled Workforce Contingency
The Department of Workforce Development in Philadelphia states that the city is fueled by a diverse set of industries, including but not restricted to manufacturing and logistics, health care and life sciences, hospitality, professional services, and an emerging startup community.
There are ninety-two colleges and universities which serve as the hub for education leadership and workforce training. Companies and employers in Philadelphia can pick and choose from a vast pool of potential job candidates from various backgrounds and skill levels.
The pharma and life sciences sectors flourish in Philadelphia because of big business giants like GlaxoSmithKline and several others located in the area like the University of Pennsylvania, which is the largest employer in the city with over 33,000 employees! Just a 2 hour drive from New York City or one hour on the fast train, Philadelphia is the perfect place for potential entrepreneurs to set up their business, buy a business in Philadelphia, or sell a business in Philadelphia.
The people, business-friendly policies, and the affordable cost of living are what make Philadelphia one of the best cities to shape any new and innovative business idea, or buy a business in Philadelphia, as almost all factors make things primed and ready to go. The residents along with their leaders are tirelessly working day and night to make the city a better place to live in and an ideal area for startups and existing businesses in Philadelphia.
If you’re looking to sell a business in Philadelphia, Buy a business in Philadelphia, get a business valuation in Philadelphia, or just want to learn more about the Philadelphia business climate, please reach out to one of our M&A advisors in Philadelphia so they may assist you as soon as you’re ready.
About A Neumann & Associates, LLC
A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or firstname.lastname@example.org