Diane Mastrull: Pointing out the obstacles

November 21, 2011|By Diane Mastrull, Inquirer Columnist
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  • Retail assistant Laura John at Hana & Posy, an eco-friendly florist and gift boutique that opened in Old City in October 2009 - after a nearly eight-week effort to get approval to hang a sign.
  • Retail assistant Laura John at Hana & Posy, an eco-friendly florist and gift boutique that opened in Old City in October 2009 - after a nearly eight-week effort to get approval to hang a sign. (MICHAEL S. WIRTZ / Staff…)
  • Leanne Krueger-Braneky, executive director of Sustainable Business Network, an advocacy group of more than 500 member businesses.
  • Kayo Higashimura, owner of Hana & Posy, works on a floral arrangement.The report cites onerous and antiquated policies and practices by the city. (MICHAEL S. WIRTZ / Staff…)

A diagram depicting what is required to obtain approvals for a projecting sign in Philadelphia takes up two pages of a 41-page report detailing the many ways the city is failing small businesses.

It is a dizzying display of bureaucracy with an expensive bottom line - in time and money - for small-business owners, who don't have much of either.

As the graphic lays out, the process can wind up requiring two permits from the Department of Licenses and Inspection, a review by the Arts Commission, an OK by the Streets Department, and a possible hearing by the Zoning Board of Adjustment.

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Also reams of paperwork, four to 12 weeks from start to finish, and as much as $3,785, to be paid by the applicant.

It is but one of many examples the Sustainable Business Network of Greater Philadelphia (SBN) cites to support the overarching message of its just-released report, Taking Care of Business; Improving Philadelphia's Small-Business Climate:

"Philadelphia is a tough place to do business."

The report, paid for with a $75,000 grant from the William Penn Foundation, is a compilation of findings and recommendations based on interviews with more than 100 owners of small businesses, defined as having 50 or fewer employees, and support groups.

In all, SBN found, Philadelphia has 93,000 small-business owners, with 54 percent of the city's jobs created by them.

"Owners reported that only the most committed entrepreneurs would be able to form thriving new businesses in Philadelphia, in part because of the obstacles that city government places in their path," according to the report, written by Karen Black of May 8 Consulting, a policy-analysis firm in Media.

SBN contends that the job-creation numbers bear that out. Philadelphia ranked 10th among the 11 largest U.S. counties in jobs it had to offer last year: 42 jobs per 100 people, compared with 147 for New York and 116 for Dallas.

The report outlines a number of city deficiencies cited by business owners, including onerous and antiquated policies and practices on licensing, permitting, and inspections; burdensome taxes; insufficient small-business financing; and poor communication between government and the small-business community.

It even slams the requirement for a cashier's check in a number of city departments where business owners must do business.

"It's 2011, and it's time for that to change," said Leanne Krueger-Braneky, executive director of SBN, an advocacy group with more than 500 member businesses.

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