I spent a little time poring over Fattah's small business plan, which he announced today during a roundtable discussion with small business leaders (the attached photo comes courtesy of the campaign).
Some thoughts:
*The plan does not address the number-one issue of business development in the city: Taxes. Fattah himself acknowledges this up front, saying in his plan that he'll announce a tax plan later in the primary and calling the city's tax system "overly complex." But it's impossible to talk about real business growth and assistance without talking about the city's tax structure. It's also out of order: Shouldn't we start the city budget with what we have to spend, and then talk about how we're going to spend it?
OK, that point aside.
As has been the case with many of Fattah's plans, this one is studded with some really good ideas. Among the ones that struck me:
*He wants to tear up MBEC, the city's useless at best and corrupt at worst Minority Business Enterprise Council. He'd put the responsibility for making sure that minority and women owned businesses get contracts with the city with the city procurement department, which is where it should be.
*He wants to create an independent non-profit to give small businesses free advice. This is a really great idea. Law firms have an ethic of pro-bono work. Why not consulting firms? I suspect many do it now anyway, so this way they'd get a little applause for it from the government.
*He wants to pursue joint procurement opportunities among city departments. This idea is just plain common sense.
*I liked the idea to give businesses whose cash flow has been devastated by government projects a bit of a tax break. We can call this the Market Street El Reparations Initiative, since that disaster is undoubtedly behind this point to some degree. SEPTA's El project has restricted traffic and destroyed businesses along West Market, and it seems to have gone on forever. True, he doesn't say how the city should give them a tax break -- it can't be a special rate, so it have to be some kind of tax credit, on the BPT perhaps? -- and true, it would be difficult in practice to decide which businesses get the break and which don't. Still, it's very good to see that someone noticed the suffering down on West Market and in similar locations elsewhere.
*He's big into loan funds, creating or expanding no-interest emergency loans for small businesses in crisis and for businesses that want to move to a new location in the city. He says these loans would be paid for in part by fees on the loans.
*I did like the idea of expanding the van pool program that helps Philadelphians get to suburban jobs. It might seem like SEPTA should do that, but a big regional transit system can't answer all the region's needs, and the truth is that a lot of people have to take several buses and trains to get to their jobs -- which is lousy both for them and for businesses that need those employees.
*And he would grow "green" business in a way that the city should, by buying their services. He's also talking about wage-tax credits for green businesses.
Other things in the plan...he has some interesting points about a need for regionalism in business development -- though he's duplicating some of the efforts that have gone before. He wants to create a regional small business development agency -- though it might make more sense to have Select Greater Philadelphia involved in that mission. And he wants to identify the top ten industries in which Philly has an advantage over other cities -- though that work has already been done incredibly well by the cluster study conducted by Innovation Philadelphia in 2003.
I would have appreciated more information on where the money for these plans (such as the loans and grants) will come from. Those fees won't cover all of it.
And there are a couple of ideas that sound good but actually codify into government something that was designed to be a stop-gap solution to dealing with government. Case in point: a Special Service District Liasion to "take the politics out" of creating special service districts. But aren't those districts just a way for businesses to pay for things that the city should do for them anyway, such as litter control and safety? So do we need a permanent post to make sure that we run our stop-gap solutions without politicking?
I have a similar concern about the "one stop shop" for small businesses that need to do work with the city. It would be called the Office of Small Business Development. How about instead of creating another office, we fix the ones we have?
Finally, one note on the idea to provide a preference to Philadelphia Businesses in city contracting: The charter was changed to allow that last year, and guess who led the charter change effort? Michael Nutter.
All that said --
This is another interesting plan that shows off some strengths: Fattah is a little bit of an outsider of sorts (or, he was an insider of another system) and he uses that to propose new ideas. He does think regionally -- and he knows how to use the feds for what he wants.