Pennsylvania Among Top States for New Business Survival and Growth
Editorial StaffPennsylvania Emerges as a Leader in Business Longevity
Pennsylvania is gaining recognition for its thriving business landscape, ranking among the top states for new business survival according to the latest federal data. This recognition underscores the Commonwealth's growing reputation as a fertile ground for business inception, growth, and success.
Governor Josh Shapiro's leadership is credited with fostering a robust economic environment, making Pennsylvania's economy one of the strongest in the nation. Notably, it is the only state in the Northeast experiencing economic growth.
Since taking office, Governor Shapiro has attracted over $35 billion in private investments, resulting in more than 18,000 new jobs and contributing significantly to economic development across the state.
Business Survival Rates Highlight Pennsylvania's Economic Strength
The U.S. Bureau of Labor Statistics has released data indicating that Pennsylvania is a leading state for the survival of new businesses over a five-year period. This achievement highlights the resilience of the state's economy under the leadership of Governor Josh Shapiro.
The latest federal data revealed that 56% of businesses started in Pennsylvania are still operational after five years, placing the state third nationally. This is significantly higher than the national average of 51.6%, where nearly half of new businesses do not survive past five years.
Governor Shapiro emphasized, “Pennsylvania isn’t just attracting new businesses — we’re creating an environment where they can succeed.” His administration has prioritized removing bureaucratic barriers, enhancing site development, and investing in workforce and community infrastructure.
Pennsylvania's Economic Resilience Amidst Challenges
The data covers businesses launched in the year ending March 2019 and still active as of March 2024, a period marked by the challenges of the COVID-19 pandemic and inflationary pressures. The Center for American Entrepreneurship research indicates that Pennsylvania startups tend to have a higher endurance rate, signifying enduring economic stability rather than transient growth.
Pennsylvania's economic performance has not gone unnoticed. A recent analysis by Mark Zandi, Chief Economist at Moody's Analytics, highlighted Pennsylvania as the sole Northeastern state with a growing economy. Under Shapiro's administration, more than 18,000 jobs have been created alongside over $35 billion in private sector investment, while taxes have been cut seven times for families, seniors, and small businesses.
Recognition and Future Prospects for Pennsylvania
Pennsylvania's economic initiatives have garnered national accolades. Area Development placed Pennsylvania among the top 20 "Best States for Business," making it the only Northeastern state on the list, and it ranked in the top 10 for "Site Readiness Programs." Additionally, Site Selection Magazine ranked the state 11th in the 2025 Business Climate Rankings, advancing seven places from the previous year.
Governor Shapiro's administration continues to push for progress with the 2025-26 budget, which focuses on reforming permitting processes, staffing agencies to expedite licenses and certifications, and investing in the state's main streets.
For more insights into the Shapiro Administration's initiatives to invigorate Pennsylvania's economy and support its workers and businesses, visit their official website.
