National Black Business Month: Hidden Threats Facing Philadelphia’s Small Businesses and How to Overcome Them

August is National Black Business Month—a time to celebrate black business owners and an opportunity to highlight their accomplishments within the community and to empower fellow black entrepreneurs. This year’s celebration tested the resilience, creativity, and economic power of Black entrepreneurs across the country. The unemployment rate for Black Americans rose to 7.2% in 2025—the highest since 2021, which will surely have an impact on the consumer spending power.

Last year, more than 7,000 retail stores in the U.S. closed. We watched iconic brands such as Bed, Bath, & Beyond, Party City, and Rite Aid join others in the retail graveyard. With nearly 50% of small businesses failing within the first 5 years many may wonder how they will survive.

Philadelphia is home to more than 30,000 small businesses, many of which operate as microbusinesses with fewer than 10 employees. These businesses are the backbone of the city’s economy, yet they face many challenges that extend beyond their control. Recent SEPTA service cuts and fare hikes have placed additional pressure on both employees and customers, making it harder for workers to get to work and for residents to patronize local businesses. As transportation gaps widen, businesses experience staffing shortages, reduced customer traffic, and ultimately, declining revenue—threatening the stability of Philadelphia’s small business community.

While these outside factors are daunting, they highlight the importance of focusing on what small business owners can control: their operations. As an operational consultant, I focus on improving the day-to-day functions of a business by assessing current workflows, identifying gaps, and introducing streamlined processes. External challenges may impact the market, but poor internal systems and lack of operational consistency can magnify the damage. By strengthening operations, businesses can better withstand outside pressures and continue to grow.

Common Operational Challenges That Hold Back Small Businesses

1. Lack of Systems

Without systems, many microbusinesses run on memory, handwritten notes, or manual follow-ups. This creates confusion, delays, missed opportunities, and increased risk of mistakes. When SEPTA cuts impact employees’ ability to commute, businesses without systems in place struggle to cover gaps, leading to lost sales and unhappy customers.

Solution: Implement standard operating procedures (SOPs) for core tasks such as scheduling, billing, and customer follow-up. Use affordable automation tools like project management software or CRM systems to track responsibilities and ensure nothing falls through the cracks.

2. Micromanagement

Small business owners often try to oversee every detail, but micromanagement stifles creativity and prevents employees from taking ownership. With transportation barriers making it harder for employees to be present, micromanagement becomes even more unsustainable.

Solution: Clearly define employee roles, set measurable expectations, and empower your team to make decisions. Trust allows businesses to remain flexible, even when disruptions occur.

3. Lack of Delegation

When business owners refuse or fail to delegate, they become a bottleneck. This prevents focus on strategy and growth while employees remain underutilized. Without delegation, transportation challenges that reduce staff availability become even more detrimental.

Solution: Build a culture of delegation. Assign authority for routine tasks and use task management platforms to track accountability. This ensures operations continue smoothly even if one person is unavailable.

Compliance Risks

Philadelphia’s business landscape is already challenging, and compliance failures only add to the risks. Without proper systems, businesses can face serious setbacks, such as:

• Expired Licenses: Missing renewal deadlines can result in fines or forced shutdowns. For example, barbers working with expired licenses put both their livelihood and their shops at risk.

  
  

• Missed Grants or Contracts: Without tracking systems, businesses often miss funding opportunities or contracts. Bark Social, which closed its doors in November after losing investor funding, demonstrates how fragile businesses can be when they lack diversified funding streams.

  
  

• Risk of Shutdowns or Lawsuits: Poor operations increase the risk of non-compliance, negligence, or lawsuits that could devastate a business.

Solution: Use compliance calendars, automated reminders, or specialized software to track licenses, permits, and deadlines. This reduces human error and ensures business continuity.

Strengthening Operations

Strengthening operations is the difference between thriving and surviving! Systems, delegation, compliance tracking, and strategic planning all allow businesses to remain resilient even in difficult times. Here are a few actionable steps every small business owner can start implementing today:

• Implement Integrated Systems: Adopt affordable digital tools to manage clients, projects, and finances.

  
  

• Promote Delegation: Build trust by empowering your team and avoiding bottlenecks.

  
  

• Streamline Processes: Identify inefficiencies and redesign workflows for speed and accuracy.

  
  

• Enhance Compliance Management: Stay on top of licenses, permits, and funding deadlines with tracking systems.

  
  

• Provide Training and Support: Equip employees with training that will allow them to grow as your business grows.

By prioritizing systems, compliance, delegation, and process improvement, business owners can reduce risks, strengthen their foundations, and seize new opportunities. Operational excellence is what ensures businesses are prepared to meet demand and build trust.