Pennsylvania: A Leading State for Business Longevity and Economic Growth
In a remarkable achievement for Pennsylvania’s economy, recent data from the U.S. Bureau of Labor Statistics reveals that the state is among the top three in the nation for new business survival over a five-year period. This milestone highlights the robust economic environment fostered under Governor Josh Shapiro’s administration, making Pennsylvania a prime location for business development.
According to the latest federal data, 56% of the businesses launched in Pennsylvania in the year ending March 2019 are still operational as of March 2024. This rate is significantly higher than the national average of 51.6%, indicating Pennsylvania’s favorable conditions for business endurance despite challenges like the COVID-19 pandemic and inflation.
Governor Shapiro attributes this success to efforts such as “cutting red tape and streamlining permitting,” as well as investments in site development and workforce enhancement. These initiatives aim to position Pennsylvania as a leading state for starting and nurturing businesses.
Economic Resilience and Growth
The state’s economic stability is further demonstrated by research from the Center for American Entrepreneurship, which confirms that businesses in Pennsylvania are more likely to withstand economic fluctuations. This resilience is underpinned by over $35 billion in private sector investments secured by Governor Shapiro’s administration, resulting in over 18,000 new jobs across the Commonwealth.
Moody’s Analytics Chief Economist Mark Zandi has also highlighted Pennsylvania as the only Northeastern state with a growing economy. This underscores the state’s economic vitality and the effectiveness of its strategic initiatives.
National Recognition and Initiatives
Pennsylvania’s business climate has garnered national accolades, with Area Development ranking it among the top 20 “Best States for Business” and recognizing its outstanding “Site Readiness Programs.” Site Selection Magazine has also praised Pennsylvania’s business environment, advancing its position in the 2025 Business Climate Rankings.
The state’s commitment to economic development is reflected in its comprehensive Economic Development Strategy, which aims to reduce bureaucratic obstacles and enhance infrastructure for business operations. The 2025-26 budget further supports these goals by funding critical staff and investing in Pennsylvania’s main streets to facilitate business growth.
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