Pennsylvania’s Remarkable Business Survival Rate: A Model for Success
“Pennsylvania is quietly pulling off what many states only promise: keeping new businesses alive long enough to thrive.”
“New federal data shows that 56 percent of companies launched in Pennsylvania are still operating after five years — the third-highest survival rate in the nation and well above the national average of 51.6 percent.”
“For state leaders, the message is clear: the business climate is not only improving, it is proving resilient under pressure.”
Harrisburg, PA – Pennsylvania is emerging as a beacon of business resilience, with new federal data highlighting its impressive five-year business survival rate of 56 percent. This figure places the state third nationally, surpassing the U.S. average of 51.6 percent. The administration under Governor Josh Shapiro has been pivotal in creating a conducive environment for business growth, as evidenced by significant private-sector investments and job creation.
Governor Shapiro’s tenure has been marked by over $35.9 billion secured in private-sector investments, resulting in more than 18,800 new jobs across the state. The administration’s strategic moves, including seven tax cuts for families, seniors, and small businesses, have been instrumental in fostering this growth. For more details on these initiatives, visit the official site.
Pennsylvania’s Economic Resilience and Recognition
- Pennsylvania stands out as the only Northeastern state with a growing economy, according to a report by Axios.
- The state has been ranked among the top 20 “Best States for Business” by Area Development.
- Site Selection Magazine has elevated Pennsylvania to 11th place in its 2025 Business Climate Rankings, a notable improvement from the previous year. More information can be found here.
The state’s first comprehensive Economic Development Strategy in nearly two decades is charting new paths for growth. Efforts to streamline permitting and licensing processes, alongside investments in infrastructure and small businesses, are reshaping Pennsylvania’s business landscape.
Investment and Growth in Pennsylvania
Recent developments include plans by Johnson & Johnson to construct a next-generation cell therapy manufacturing site in the state, reflecting the ongoing expansion of Pennsylvania’s biotech sector. The state’s life sciences industry is thriving, with over 100,000 employees and a notable patent output.
Pennsylvania’s business-friendly environment continues to attract significant investments from companies like Farm Plast, DrinkPAK, Calgon Carbon Corporation, and Eurofins.
Pennsylvania’s proactive approach to economic development, marked by targeted investments and strategic reforms, continues to yield positive outcomes, positioning it as a leader in business resilience and growth.
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