Pennsylvania ranks among top states for new business survival
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Pennsylvania's new businesses are more likely to survive five years than most across the U.S., per the latest federal data.
Why it matters: Keeping a new business alive post-pandemic is no small feat — and it's becoming even harder amid rising inflation, staffing woes and the government shutdown, especially for companies that rely on federal contracts or aid.
By the numbers: West Virginia (57.6%), Connecticut (57.5%), Pennsylvania and Alaska (both 56%) have the highest five-year business survival rates among U.S. states.
- The nationwide rate is 51.6% — meaning nearly half of all new businesses fail within their first five years.
How it works: The numbers are based on U.S. Bureau of Labor Statistics data tracking businesses that opened in the year ending March 2019 and remained open as of March 2024.
Between the lines: Pennsylvania has slightly fewer small businesses per capita than most states, but those started here are also more likely to survive, per the Center for American Entrepreneurship.
The latest: The state announced yesterday it would invest $21 million to open 11 new business assistance service centers across Pennsylvania.
Flashback: An October analysis by Moody's Analytics chief economist Mark Zandi found that Pennsylvania is the only Northeastern state with a growing economy, Axios reported.
Zoom out: Washington (41.1%), Missouri (43.2%) and Washington, D.C. (44.7%) have the lowest five-year survival rates in the nation.