By James Williams, Editor

Small businesses are the backbone of our communities, but many across the Delaware Valley are facing financial hardships. According to the Federal Reserve of Philadelphia, 57% of small business owners in the region said they weren’t on solid financial ground in 2023. This marks the second year in a row where the majority of small businesses in the area reported fair or poor financial conditions.

So, what’s causing the struggle? The biggest financial challenges business owners reported were:

Rising costs of goods, services, and labor

Weak sales and lower-than-expected revenue

High operating expenses that make it harder to stay profitable


Beyond financial pressures, many businesses also struggled with hiring qualified employees, growing sales, and supply chain disruptions.

A New Initiative to Support Small Businesses

Recognizing these challenges, the City of Philadelphia recently announced the launch of the Philadelphia Small Business Catalyst Fund—a $5 million investment aimed at helping small businesses and entrepreneurs grow. Unveiled by Philadelphia’s Director of Commerce Alba Martinez alongside city officials, the fund is part of a broader effort to boost the city’s business environment and reduce barriers for entrepreneurs.

Mayor Cherelle Parker’s administration has made economic opportunity a priority, and the Catalyst Fund aligns with the PHL Open for Business Executive Order, which focuses on making Philadelphia a better place to start and run a business.

“Philadelphia small businesses and entrepreneurs are the backbone of our city and we want to help them begin and grow. Our goal is to make sure all Philadelphians have access to economic growth and opportunity, and we are confident that the new Small Business Catalyst Fund will support economic development and drive innovation,” said Mayor Cherelle L. Parker. “This is just one way our comprehensive business support ecosystem is working. “We are excited to expand our suite of resources—from the Mayor’s Business Action Team to over $19 million in education, mentorship, professional services and financial assistance, and can’t wait to see all that our small businesses are able to accomplish and achieve through this new initiative.”

“We are committed to building on our successes, closing gaps that inhibit growth, and creating an environment where small businesses and entrepreneurs can thrive—because their success is Philadelphia’s success,” said Alba Martinez, Director of Commerce, City of Philadelphia. “The Fund is not just about grants—it’s about accelerating success. We designed this initiative based on direct insights from local businesses, diverse Chambers of Commerce, and industry experts. Through a streamlined application process, proactive outreach, and a data-driven approach, we are dedicated to eliminating outdated methods that slow small business growth. What we learn from this initiative will help refine other City programs—ensuring our entire ecosystem better serves the businesses driving Philadelphia’s economy forward.”

What Does the Philadelphia Small Business Catalyst Fund Do?

The Catalyst Fund is designed to help small business owners by:

✔ Providing more than just funding – Entrepreneurs will also get access to education, mentorship, capital, and strategic guidance.
✔ Simplifying the application process – Using a data-driven approach, the city aims to make applying for funds easier and more accessible.
✔ Encouraging collaboration – The program will connect business owners with resources across Philadelphia’s business ecosystem.

Will This Fund Make a difference?

While $5 million is a step in the right direction, small business owners will need more than just one-time grants to recover and thrive. Sustainable growth will require continued investment, better access to credit, and policies that address the root causes of financial instability.

For now, the Catalyst Fund offers hope for entrepreneurs looking to stabilize and grow their businesses. If you’re a small business owner in the Philadelphia area, it’s worth keeping an eye on how this fund rolls out and how you can take advantage of the opportunities it provides.

The Town Crier is a Rapid Response news blog that is written by James Williams and created in collaboration with ChatGPT for research assistance and content editing.