Philadelphia has always been a city built on practical operators. We’re a region of family businesses, tradespeople, manufacturers, medical practices, service companies, and neighborhood shops that have been kept alive by owners who show up every day and put the work in. It’s no surprise that Entrepreneurship Through Acquisition (ETA) is starting to take hold here. The model fits the city: buy a real business, take care of the team, run it well, grow it over time.
In my day-to-day as an SBA lender, I’m talking with people across the region who are either buying their first business or thinking about it. The interest is real and it’s growing. This article lays out what ETA actually is, why it’s gaining traction in Philly, and where people can plug into the ecosystem.
Entrepreneurship Through Acquisition (ETA) is simple at its core. Instead of building something from the ground up, an entrepreneur buys an existing small business with actual revenue, customers, employees, and history. You step in as the operator. You run it. You grow it.
Why people choose ETA:
It lowers the early-stage risk that comes with startups.
You’re working with proven cash flow from day one.
Ownership is immediate instead of theoretical.
It’s a faster path to becoming a CEO.
And there are a few ways people do it:
Self-funded search using SBA financing.
Traditional search funds backed by investors.
Independent sponsors doing one deal at a time.
At the end of the day, it’s about taking over a healthy business and giving it new energy.
A few big forces are pushing this forward:
The Wharton School now has a $10 million ETA program, which shows how mainstream this path has become.
Business owners across the country are retiring, creating real succession opportunities.
Entrepreneurship centers everywhere are adding ETA, search funds, and acquisition strategy to their programming.
ETA hits a sweet spot between stability and ambition. You’re not dreaming up an app—you’re stepping into a business that’s been serving customers for 20 or 30 years.
Philly is one of the most underrated ETA markets in the country, and here’s why.
We have a strong bench of institutions shaping future operators:
Temple University Innovation & Entrepreneurship Institute
Drexel University’s Baiada Institute and Close School of Entrepreneurship
Students in these programs aren’t just studying entrepreneurship—they’re getting hands-on with valuation, financials, deal structure, and operator thinking.
Across Greater Philadelphia, there are dozens of active searchers, independent sponsors, and small acquisition groups. Many are working quietly, looking at HVAC companies, medical practices, specialty contractors, niche manufacturers, logistics firms, and professional service companies.
The businesses that make Philly run are exactly the ones ETA buyers want.
In neighborhoods from Northeast Philly to South Jersey to the Main Line to Delaware County, owners are reaching retirement age. Most want:
A successor who will take care of their employees.
A clean transition.
A fair valuation.
That’s where ETA buyers come in. When the fit is right, both sides win.
A lot of successful ETA deals in this region use the SBA 7(a) program. A solid acquisition structure usually includes:
A profitable business with steady historical cash flow.
A buyer with leadership or operational experience.
A real transition plan with the seller.
A mix of bank financing, buyer equity, and seller financing.
Industries that make strong SBA-backed acquisitions here include:
HVAC and home services
Health and dental practices
Specialty trades
Light manufacturing
Logistics and distribution
Professional services
These are resilient industries with recurring demand—very Philly.
If you're exploring ETA in the region, here are strong points of entry:
Temple Innovation & Entrepreneurship Institute
Each plays a different role, but together they make Philly an emerging hub for ETA.
Buying a business isn’t just a personal milestone for the owner. It keeps our local economy healthy. ETA helps:
Preserve jobs
Stabilize local industries
Modernize long-standing companies
Keep ownership local
Strengthen neighborhoods
In a city like Philly, where small businesses are part of the fabric, ETA becomes a real driver of long-term economic strength.
A few practical steps:
Look into ETA and search fund fundamentals.
Learn what makes an acquisition financeable.
Explore SBA 7(a) options for buying a business.
Attend local university events or pitch competitions.
Talk with lenders early so you don’t waste time on deals that can’t work.
Below is a directory that I have compiled of organizations, data sources, and institutions supporting Entrepreneurship Through Acquisition in the Philadelphia region.
Wharton Venture Lab ETA Program – https://venturelab.upenn.edu/eta
Temple Innovation & Entrepreneurship Institute – https://iei.fox.temple.edu
Drexel Baiada Institute – https://www.lebow.drexel.edu/faculty-research/centers-institutes/baiada-institute/pitch-competitions
Drexel Close School of Entrepreneurship – https://drexel.edu/close-school-of-entrepreneurship
Villanova University M&A Society – https://www1.villanova.edu/university/business/academics/graduate-programs/msf/professional-development/student-organizations.html
U.S. Small Business Administration (SBA) – https://www.sba.gov
U.S. Census Bureau Business Data – https://www.census.gov/programs-surveys/business-owner.html
Pennsylvania DCED – https://dced.pa.gov
Philadelphia Department of Commerce – https://www.phila.gov/departments/department-of-commerce
Axial Search Fund Directory – https://www.axial.net/forum/companies/philadelphia-search-funds
BizBuySell Pennsylvania Listings – https://www.bizbuysell.com/pennsylvania-businesses-for-sale
Business Valuation Resources (BVR) – https://www.bvresources.com
CONNECTpreneur – https://connectpreneur.org
SCORE Philadelphia – https://philadelphia.score.org
Temple SBDC – https://www.temple.edu/sbdc
Widener SBDC – https://www.widener.edu/centers/small-business-development-center
ETA isn’t a trend in Philadelphia—it’s a natural extension of who we are. We’re a city full of operators, builders, and owners who value real businesses that do real work. The next generation of leaders is stepping up, and acquisition entrepreneurship gives them a path that makes sense.
If you’re thinking about buying a business in the Philly area or building a program to support this work, I’m always glad to connect.
If you want to talk through an acquisition, learn how SBA financing fits into a deal, or just get a gut check on whether an opportunity makes sense, you can schedule time with me here. I am based in Philadelphia but I can lend nationwide:
Looking forward to connecting and supporting your ETA journey