Owning a business in Philadelphia is not for the faint-hearted. From convoluted tax forms to inconsistent enforcement practices, Philadelphia’s regulatory climate has rightfully earned the notorious reputation of discouraging business formation and growth. A recent study gave the city a "C+" grade for its regulatory friendliness, demonstrating the demand for greater transparency and accountability in the delivery of government services.
Optimism, however, can be derived from the growing political will to shed this negative reputation and recast the perception of our city. Less obvious, however, is the sort of action needed to be taken. And innovative solutions to a burdensome business climate are not likely to emerge from the 4th floor of City Hall; they will have to emerge from within the business community. This was the motivation for the June Entrepreneurs’ Roundtable, which focused on “Boosting Your Bottom Line: How to Foster a Business-Friendly Regulatory Climate.”
City Councilman Al Taubenberger joined the Roundtable to offer his unique insights - having the longest professional tenure outside of politics of any of his colleagues - into how we could improve upon the current state of affairs. Elected to his first term last November, Taubenberger brings decades of experience leading the Greater Northeast Chamber of Commerce to City Council and has made job creation a keen legislative priority. “A lot of our issues are constantly tied to poverty – poor education, poor graduation rates, health issues, crime – they all go back to poverty levels,” he stated. “If we can create jobs, we can solve a lot of the issues.”
He believes the creation of quality job opportunities follows effective policies that promote business growth. Policies, in his opinion, that the City is presently missing. In assessing the current state of affairs, Taubenberger stated, “The City puts the burden on the businesses for a lot of things. … I think successful business people leave the city [because] they feel the opportunity cost of being here is too tedious – especially small businesses.”
What is the cause for this convoluted regulatory climate? A lack of legislative review was cited as a principal factor. Many ordinances are passed to address temporary problems and fail to be reevaluated to assess its continued need. The result is a considerable number of unnecessary laws on the books. A possible means of addressing this, suggested by some experts, is to include a requirement for regular, periodic reviews after three or more years. While open to that idea, Taubenberger offered slowing the pace at which new rules proliferate as a more effective strategy. He suggested completing a economic impact assessment before enacting them.
Stopping this wheel from spinning, however, will require tackling a multitude of issues, ranging from improving access to financing to easing the procurement process.
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Boosting Your Bottom Line:
Fostering a Business-Friendly Regulatory Climate