Philadelphia has always had a rich history. It is known as the birthplace of the United States, where its leaders met to discuss, debate, and chart a new path for the nation through the signing of the Declaration of Independence and the drafting of the nation’s constitution.
It is also a city steeped in the history of the emancipation of slavery and the civil rights movement with memories of the daring run of the Underground Railroad movement, the influence of organizations like the National Association for the Advancement of Colored People (NAACP), the Free African Societies, and personalities like Martin Luther King Jr and Octavius Catto.
Like every modern-day city, Philadelphia is also a place of economic competitiveness and opportunities. Not only does the city attract new businesses while seeing the growth of existing ones, but it is also an investment haven for those looking to commit funds into ventures that would yield reasonable returns.
For Black investors, Philadelphia offers opportunity for wealth creation. According to Select Greater Philadelphia, a non-profit entity highlighting Greater Philadelphia’s unique business assets to national and global audiences, it points out that “generating more than $450 billion in gross regional product, Greater Philadelphia exerts global influence as one of the nation’s biggest markets”.
With its diverse population, historic importance, and thriving ecosystem, here are five industrial sectors that offer investment opportunities for Black investors.
Health Care
Philadelphia’s health care sector has continued to grow over the years and offers promise for investors looking to not just commit funds to patient care and research facilities alone, but also to leverage opportunities in other health care services. The sector not only contributes to the employment numbers in the city but also boasts a diverse range of services that investors can explore.
According to a publication by the Economy League of Greater Philadelphia a non-profit organization in Philadelphia, in a publication of the industry analytics for the city of Philadelphia states that “The Healthcare sector, accounting for 21.3% of total employment in Philadelphia, includes core industries such as hospitals, physicians’ offices, home health care services, and nursing care facilities. The sector also includes industries that are part of the supply chain or end-product delivery, such as medical equipment wholesalers, optical goods stores, and health and personal care stores.
While investing in the sector is encouraged, it is important that proper research be done to understand the regulations guiding the industry. Below are things to consider before exploring investment opportunities in the healthcare sector.
- Regulatory environment: Health sector in the United States is heavily regulated with the Food and Drug Administration performing oversight functions. Investors must research what the FDA will approve or reject so as not to experience delays in approval that might lead to considerable financial losses.
- Demography: Who is your target market? This is essential in ensuring that not only can the company meet the demand of a considerable size of the population but also ensure such a group can pay for such services.
- Innovation: Health care is constantly evolving with advancements in technology shaping the industrial sector. Investors must continue to innovate and adapt to be able to meet the growing demands.
Retail & Hospitality Industry
Perhaps it can be considered as the second-largest growing sector in Philadelphia, the retail industry. According to an analysis of Philadelphia’s destination marketing infrastructure and its role in the hospitality sector as published by the Office of the Controller for the city of Philadelphia, Pennsylvania, it is pointed out that “Leisure and Hospitality is among the largest sectors of our City’s economy, responsible for 64,000 jobs, $2 billion in economic activity, and $83 million in tax revenues annually”.
Making inroads into the sector provides a great opportunity for Black investors especially as the city enjoys a sizable percentage of the Black demography. Whether it is setting up supermarkets, clothing and footwear stores, Department stores, hotels, coffee and cafe shops, restaurants and event venues, the city’s historical monuments is a thriving tool that attracts tourists both visitors and locals alike who visit not just the city’s sites but also take advantage of the thriving retail and hospitality ecosystem of the city.
While traditional brick and mortar structures as well as e-commerce are areas to explore, the retail and hospitality landscape requires certain analysis which should guide any investment decision to ensure return on investment.
- Demographics: Do research on the local population’s income level, spending habits, and age. This would help guide decisions on which critical area funds are required.
- Regulatory: Understand the regulations governing the space and the organization responsible for it. Licences and permits should properly be sought before launching whatever outfit the investor chooses to explore.
- Traffic Patterns: Do an assessment of the footfalls as well as the vehicular movement. Location and ease of access can be critical to the survival of a business.
Technology and ICT Service Sector
The technology and ICT service sector has continued to flourish over the years with large and small industries coming on board the ecosystem. Whether it be core industries in software and hardware services, telecommunications, e-commerce, IT support, and biotechnology, etc, Black investors can expect to enjoy a rich return on investment as every sector within the Philadelphia space is dependent on ICT as part of its operational requirements.
According to Ben Franklin Technology Partners in its Information Technology Report for the trends and highlights of the Greater Philadelphia Region from January 2010 to June 2015, it stated that “given the constant pace of improvement in IT and the ongoing evolution of the web-based and phone and tablet software, tools and services, information technology will undoubtedly continue to represent a growth area for companies in the Greater Philadelphia region”.
Before making any technology and ICT investment decision, below are some points to consider.
- Conduct a Cost-Benefit and Appraisal: Before choosing to invest in the technology space, it is important to conduct a cost-benefit analysis of the investment. Will the funds yield reasonable returns, is the technology investment readily demanded by small or large businesses within the location?
- Identify Technology Needs: What needs will the technology investment serve? Does it offer service functionality to various business sub-sectors like human resources, customer relationship management, audit, tax, etc)
- Regulatory Requirements: Each industrial sector has regulations guiding its operations within the ecosystem. Adhering to these regulations is crucial for the investment to succeed.
Business & Financial Services
The business and financial services sector provides a lucrative opportunity for Black investors through the diverse investment opportunities it offers such as traditional banking services, insurance, fintech innovation and solutions, asset management, and other financial tools that support businesses, foster economic empowerment, and build wealth.
Financial advisory firms and Black-owned banks that cater to the underserved communities and businesses within the city can be a great platform to commit capital that not just builds financial wealth but also ensures a more inclusive and equitable financial landscape.
When investing in the Business and Financial service sector in Philadelphia, here are several areas to consider.
- Local and Federal Tax Implications: The city of Philadelphia has its own local tax that every business is required to adhere to. Understanding the Business Income & Receipts Tax (BIRT) and Net Profits Tax (NPT) and how they are levied on businesses is essential.
- Regulatory Requirements: The business and financial services sector has very strict regulatory requirements governing the space. Understanding the compliance requirements of the Pennsylvania Department of Banking and Securities which regulates financial services is important to ensure no loss of investment.
Real Estate and Affordable Housing
Investing in real estate development and affordable housing presents a great opportunity for Black investors and developers looking for great return on investment as well as security. Philadelphia is a thriving market for residential and commercial real estate investment as the affordable cost of living when compared to other big cities like New York makes it attractive to both renters and buyers alike. Areas like Fishtown, Brewerytown, Olde Kensington, Port Richmond, Chestnut Hill, Logan Square, and Strawberry Mansion are up-and-coming neighbourhoods for real estate investments in 2025 according to New Age Realty Group, that Black investors can explore.
In a 2024 article titled Philadelphia Real Estate Investment Market: A Comprehensive Guide for Residential and Commercial Investors by Montcoliving.com, it stated that “Philadelphia’s residential real estate market has been one of the most attractive for investors in recent years, offering a variety of opportunities ranging from single-family homes and multi-family units to luxury condos and affordable housing.
The city’s population growth, urban revitalization, and relatively affordable property prices compared to other major cities make it an ideal market for both short-term and long-term residential real estate investments”.
Investing in real estate and affordable housing is great especially when targeting high yield return on investment in the long run. Below are factors to consider when committing funds into the sector.
- Local Regulations: Regulations with respect to city ordinances and state laws covering tenant protection, building codes, and property disclosures must be understood and adhered to when investing in real estate.
- Thriving Neighbourhoods: As earlier mentioned, there are up-and-coming neighbourhoods that would provide great investment returns. Researching such neighbourhoods and understanding the demands can help ensure the security of investment.
- Rental Rates: How much does it cost to rent an apartment in a specific location, and will your investment be able to attract and serve the needs of the demography in the area? These are a few of the many things to consider when looking to invest in the real estate sector.
Okechukwu Nzeribe works with the Onitsha Chamber of Commerce, in Anambra State, Nigeria, and loves unveiling the richness of African cultures. okechukwu.onicima@gmail.com
