Howard Brown urges Philadelphia to track 'capital readiness' and fund back-office support for diverse firms

Howard Brown, founder of Advantage Capital, told Philadelphia's Economic Opportunity Review Committee on March 30 that improving access to capital for small and minority-owned firms requires measuring and financing what he calls "capital readiness" — the bookkeeping, financial statements, compliance and strategic planning that lenders require.

Brown spoke to the committee during a guest presentation and Q&A, arguing that policy debates often treat access to capital as purely a supply problem while overlooking whether businesses are structurally prepared to receive and manage funds. "Access to capital is not just about a question of whether money exists, but whether businesses are structurally ready to receive it," Brown said.

The recommendation matters because, committee members said, many local firms that appear successful on the surface lack the financial documentation or back-office capacity lenders and prime contractors need. Regina A. Hairston, president and CEO of the African American Chamber of Commerce for Pennsylvania, New Jersey and Delaware, told the committee that "96% of African American…