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The Economic Case for Power Up your Business

Power Up Your Business (PUYB) is a City funded, Community College of Philadelphia (CCP) led program to support small businesses. PUYB helps small businesses throughout Philadelphia through a 12-week, peer-based learning experience. At full capacity, PUYB will serve 75 participants per year. Participants learn from a team of experts, develop a tactical improvement plan, build relationships with other business owners in their community, and receive coaching from a business coach and financial coach.

Benefits

training Training from experts
Coaching Support
Business & Financial
Tactical Improvement Plan
Learn with Business Owners 
in their community

Ongoing Impacts

Increased revenue
Increased employment
Stronger network
One year of business coaching
upon completing the program

Growing Businesses in Philadelphia—Block by Block

49%

of PUYB participants are located on designated commercial corridors

5

Training Locations
PUYB offers classes at all four Community College of Philadelphia campuses and in South Philadelphia

120

businesses participated in PUYB in the past 2 years

39

ZIP Codes Represented

10

City Council Districts
Participants represent all 10 city council districts

806
Businesses attended our Storefront Series of workshops

529
Businesses attended our Community and Partnership workshops

Strong Local Economy

Direct Impact

Businesses increase revenue and employment

Indirect Impact

New revenue used to procure goods and services from other local businesses

Induced Impact

New employees use a portion of their salaries to purchase groceries, entertainment, health services in the city

A More Diverse and Inclusive Economy

By offering free, accessible classes throughout the city, Power Up makes small business training and resources available to participants who may otherwise not have been able to access them. Power Up’s inclusive, city-wide strategy is moving Philadelphia toward a more equitable, diverse and resilient local economy.

PUYB Spotlight: Jonathan Williams

Business: Chestnut Hill Cleaning Company
Background: Jonathan runs his own professional cleaning business, Chestnut Hill Cleaning Company, which he started while a junior at Central High School. He provides cleaning and snow removal services to residential and corporate clients.
Impact: Jonathan’s profitable business keeps five independent contractors busy cleaning churches, schools and businesses, mostly in the Chestnut Hill area.

POWER UP YOUR BUSINESS PRODUCES A HIGH RETURN ON INVESTMENT

Understanding the Impact of PUYB

PUYB has two primary outcomes: it helps participants increase their average annual revenue and it helps more participants stay in business. We estimate that the average PUYB participant generates $1.1 million in net new revenue in the first 10 years after completing the program. Based on the attrition rate of PUYB participants against the average for small businesses, we estimate that almost 90%, or 67 businesses, will still be in operation 10 years after completing the program. This compares to only 43 businesses in the absence of the program, based on the national average for similar firms is less than 60%. In aggregate, we estimate that in the 10 years after completing the program, each annual cohort of PUYB participants will generate $113.5 million in net new revenue.

Within one year of completing PUYB

  • Participating businesses increased their average annual revenue by 21.1%
  • 56% of participants had hired a new employee

Every $100,000 invested in PUYB generates:

$22.1 million
in economic impact

$350,000 in net new taxes
over a ten year period

Economic Impact

In aggregate, each annual cohort of PUYB is estimated
to generate $113 million in net new revenue. This
net increase is estimated to generate a $176 million
economic impact in Philadelphia (with an additional
$8 million in Pennsylvania outside Philadelphia). This
economic impact supports 1,330 job years.

Fiscal Impact

The net new economic impact generates new taxes for the City of Philadelphia and the Commonwealth of Pennsylvania. Over 10 years, it is estimated that the City government will see a net gain of $2.8 million in tax revenues from one annual cohort of PUYB participants.

10-YEAR AGGREGATE IMPACT FROM ONE CLASS OF PUYB PARTICIPANTS

Economic Impact1 Philadelphia Pennsylvania
Direct Output ($M) 2 $103.0 $103.0
Indirect and Induced Output ($M)3 $73.6 $82.0
Total Impact ($M) $176.6 $185.0
Job Years Supported (FTE) 4 1,330 1,370
Labor Income ($M) $50.5 $53.1
Source: IMPLAN (2015)
Tax Revenue Impact Tax Revenue Impact to Philadelphia Tax Revenue Impact to Commonwealth of Pennsylvania
Personal Income Taxes($M) $1.7 $1.1
Sales Taxes ($M) $0.4 $1.5
Business Taxes ($M) $0.7 $0.5
Total Taxes ($M) $2.8 $3.0

INVESTING IN ONE CLASS OF PUYB PARTICIPANTS YIELDS A HIGH RETURN FOR THE CITY

1. There is a significant difference between total economic value of retail and the amount available to circulate through the local economy. Therefore, the model assumes that the markup on retail is what creates the impact on the local economy. Because local retailers buy goods from wholesalers and manufacturers outside of the area, the expenditures cannot be fully attributed to Philadelphia County and these “retail margins” are thus dropped from the regional model. As a result, total revenue for PUYB businesses is slightly greater than the direct impact within the City and Commonwealth.
2. Some of the revenues earned by PUYB participants are in retail sales. Some of those dollars actually go to non-local manufacturers and wholesalers, so an adjustment is made to reflect only dollars that circulate within the local economy. Hence, $113 million in aggregate sales is revised downward to $103 million in direct local economic activity.
3. The additional economic activity represented by PUYB participants has a multiplier effect in the local economy, as that increased economic activity is reflected in additional business opportunities for local vendors and additional household earnings for local residents. This multiplier effect is accounted for in this row.
4. A job year is defined as the equivalent of one FTE employed for a full calendar year.