The Good Economist 7
spending is key to developing policies that truly result in economic growth.
While small business is routinely praised for its contributions to economic growth and job creation, big business actually receives the dominant share of economic development incentives. Between 2010 and 2014, large companies captured 89 percent of the $49.7 million awarded by the Pennsylvania Job Creation Tax Credit. The main problem is these huge incentives, which are aimed for the purpose of job creation, have become a retention mechanism for a corporation that threatens to leave. Meanwhile, small business leaders are rooted in their communities and have repeatedly watched large subsidized incentive companies come and go.
It is widely acknowledged that local, small businesses are the primary driver of employment growth in the region. Small businesses form the backbone of Philadelphia’s economy and create jobs at a faster pace than larger companies. 98 percent of Philadelphia businesses are small businesses with fewer than 50 employees. Many fill gaps in services that larger businesses do not prove, while others implement business strategies that address individualized community needs, such as allowing payment arrangements for needy patrons and providing skill development to local youth through job experience. Small businesses create over half of the jobs in the city (54%), and, yet despite all this, their interests in economic development issues are not effectively represented.
Attracting large corporations that will leave after their incentive is finished is not the authentic investment our communities need. We need investment that ensures more Philadelphians have stable jobs, earn decent wages, and have access to the benefits they need to keep their families healthy and economically secure. We must foster a business culture that says “if we are striving for business and job creation in the city, we are seeking to create good jobs and better companies - those that don’t just have an economic impact, but a broader social one, too.”
need to know about this emerging policy
For small businesses, where employees often work long hours and are earning more than $455 per week, the proposed rule could be significant. If multiple employees are routinely working beyond normal work hours, overtime pay could reasonably increase personnel expenses.
Call for Green Team volunteers for the DNC!
The DNC Green Team is looking for local volunteers who are able to assist with the sustainability efforts from July 25-28th. Be a part of this historic event and help implement enhanced environmental practices at Philadelphia's key venues.
Access the online application at here
The online registration system closes on Friday, July 1st.