Ask a small business owner in Philadelphia how things are going, and you may hear two answers at once: cautious about the economy, but confident about their own path forward.
That mix shows up in the data. Citizens’ Q3 2026 Business Pulse, a national survey, found that half of small business owners expect their revenue to grow in the next three months — the highest level recorded this year — even as confidence in the broader U.S. economy dropped to 24 percent. Owners are betting on themselves, whatever the headlines say.
For Philadelphia’s Black entrepreneurs, that optimism is real, and so is the gap between where they are and where they could be.
Momentum worth celebrating
Black-owned businesses are opening, hiring and reinvesting across our region. They anchor commercial corridors, create jobs and build wealth that can pass from one generation to the next. When they grow, whole neighborhoods feel it.
The trend line is encouraging. In Philadelphia, business density climbed 39 percent between 2012 and 2022, reaching 111 businesses per 1,000 residents, up from 82, according to a November 2025 analysis from The Pew Charitable Trusts. More Philadelphians are building something of their own.
Where friction still exists
Growth is not the same as durability, and the numbers make the gap plain.
Philadelphia still trails its peer cities and the national average of 129 businesses per 1,000 residents, and the density of Black-owned businesses remains well below that of comparison cities. Access to capital is a big reason. The Federal Reserve’s Small Business Credit Survey has documented that firms owned by people of color are far less likely than comparable White-owned firms to receive full financing, even after accounting for credit profile, revenue and business age.
These gaps do not reflect the talent or drive of the owners. They reflect an ecosystem that has not always worked the same way for everyone.
Growth without liquidity can be another big challenge. Across Greater Philadelphia, we frequently see resilient entrepreneurs driving record top-line sales, only to find their day-to-day operations constrained because their cash is locked in inventory and uncollected invoices.
Today’s small businesses are navigating a severe margin squeeze. They have to respond to rising inventory costs, a pricing ceiling where cost increases can no longer be fully passed to consumers and higher interest rates that make waiting on receivables expensive.
Managing working capital is vital to keep a growing company from running out of cash. However, we need to be clear about the broader reality: Technology and efficiency gains alone cannot solve systemic undercapitalization.
While optimizing internal cash flow protects a business today, equitable access to traditional loans and credit lines allows that business to build lasting enterprise value tomorrow. We must address both internal operational efficiency and external capital deployment together.
What partners can do
Closing that gap is a shared job. Banks, chambers, civic groups and policymakers each hold a piece of it.
Capital has to reach more owners. That means expanding access to loans, credit and grants for businesses that are ready to grow but have been overlooked. The City’s new $5 million Small Business Catalyst Fund, which offers grants of up to $50,000 to smaller firms, is one example of public investment aimed at exactly this.
Guidance matters as much as dollars. Many owners benefit from help with cash flow, pricing and long-term planning well before they seek outside financing. The African-American Chamber of Commerce of PA, NJ & DE works with entrepreneurs across the tri-state region on business support and business development, helping owners build the foundation to compete and win.
Connections matter, too. Mentors, peers and advisors who understand a local market can help an owner move from an idea to a plan, and from a plan to a growing company.
Building a collaborative capital ecosystem is key. Operational efficiency must be backed by institutional capital. No single institution can bridge the funding gap alone.
The African-American Chamber of Commerce of PA, NJ & DE delivers on-the-ground advocacy and network, which is a necessity for businesses for scale. When we align the Chamber’s community leadership with the flexible, localized lending of Community Development Financial Institutions (CDFIs) — Entrepreneur Works, PIDC Community Capital, Vestedin — and pair it with the balance sheet scale of commercial banks, we create a seamless pipeline for sustainable growth.
A moment Philadelphia should seize
This conversation arrives at a pivotal time. In 2026, Philadelphia has taken center stage for the nation’s 250th anniversary, drawing visitors and national attention to our city. That spotlight is an opening, especially for Black-owned businesses ready to show what they have built.
That said, a milestone year should lead to lasting change, not a short-term bump. The goal is durable growth that outlasts the celebrations.
To Philadelphia’s business leaders, civic partners and policymakers: Keep investing in the capital, guidance and connections that help Black-owned businesses grow. To entrepreneurs betting on themselves: The resources to help you scale are within reach, and a growing network of partners is ready to work alongside you.
The optimism is here … Now let’s make sure we deliver the support to match it.
Damien Ghee is Senior Vice President and Market Manager for the Philadelphia, Southern New Jersey, and Delaware region at Citizens Business Banking. Regina Hairston is President and CEO of the African-American Chamber of Commerce of PA, NJ & DE.
Disclosure: Citizens is a financial services provider with a business interest in small business lending. The African American Chamber of Commerce of PA, NJ & DE engages in advocacy and policy efforts on behalf of its members.
The Citizen welcomes guest commentary from community members who represent that it is their own work and their own opinion based on true facts that they know firsthand.
BLACK ENTREPRENEURSHIP
