Pennsylvania's Business Survival Rate Among Top in the Nation

Pennsylvania's Economic Environment: A Beacon for Business Resilience

"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."

Business Survival Rates Highlight Pennsylvania's Success

Harrisburg, PA – Recent insights from MyChesCo emphasize Pennsylvania's thriving business environment, as shown by federal data indicating that 56 percent of businesses founded in the state remain operational after five years, ranking third nationally. This statistic surpasses the national average of 51.6 percent.

Under Governor Shapiro's leadership, Pennsylvania has attracted over $35.9 billion in private investment and created more than 18,800 jobs. The administration has also implemented seven tax cuts benefiting families, seniors, and small businesses, as detailed in the 2025-26 budget.

Recognition for Economic Growth and Business Climate

• Pennsylvania stands out as the only Northeastern state with a growing economy, according to an Axios report based on Moody’s Analytics.
• Area Development placed Pennsylvania among the top 20 "Best States for Business," with a top 10 ranking for "Site Readiness Programs."
• Site Selection Magazine raised Pennsylvania to 11th in the 2025 Business Climate Rankings, a significant advancement.

Governor Shapiro's administration prioritizes economic competitiveness and efficiency, launching Pennsylvania's first comprehensive Economic Development Strategy in two decades. Efforts include reducing permit and licensing delays and investing in shovel-ready sites and Main Street revitalization.

Recent investments by companies like Johnson & Johnson further showcase Pennsylvania's burgeoning biotech sector. Noteworthy projects from companies such as Farm Plast and DrinkPAK illustrate continued economic growth.

The positive trajectory is underscored by the U.S. Bureau of Labor Statistics and the Center for American Entrepreneurship, which report that Pennsylvania businesses are not only starting up but maintaining operations.

Governor Shapiro remarked, “From cutting red tape and streamlining permitting to investing in site development, main streets, and our workforce, my Administration is focused on making Pennsylvania the best place to start and grow a business.”

The state’s industrial financing initiatives are also noteworthy, with the Pennsylvania Industrial Development Authority approving substantial loans to stimulate local economies and job creation.

For instance, Yerty Auto Service Inc. in Blair County received significant funding to transform an industrial site into a modern automotive hub. Meanwhile, Weaver Investments Inc. in Westmoreland County is developing new industrial spaces, supported by state loans.

The Commonwealth's life sciences sector is flourishing, with a strong workforce and numerous patents, positioning Pennsylvania as a leader in innovation and business sustainability.

As noted by DCED Secretary Rick Siger, “The Shapiro Administration is committed to supporting businesses throughout Pennsylvania so that we can build a strong, diverse, and competitive economy.”

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