New data from the U.S. Bureau of Labor Statistics shows that Pennsylvania ranks among the top states in the nation for five-year new business survival.
According to the latest federal data, 56 percent of businesses started in Pennsylvania remain open after five years – the third highest percentage nationwide. The national average business survival rate is 51.6 percent, meaning nearly half of new businesses across the country fail within their first five years.
“Pennsylvania isn’t just attracting new businesses — we’re creating an environment where they can succeed,” said Governor Shapiro. “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 data tracks businesses that opened in the year ending March 2019 and were still operating as of March 2024 — a period that includes the economic disruption of the COVID-19 pandemic and continued inflationary pressures. Research from the Center for American Entrepreneurship shows that businesses started in the Commonwealth are more likely to endure — a sign of long-term economic stability rather than short-term growth alone.
The findings come as Pennsylvania continues to earn national recognition for its economic performance. A recent analysis by Moody’s Analytics Chief Economist Mark Zandi found that Pennsylvania is the only state in the Northeast with a growing economy.
