Harrisburg, PA – Pennsylvania ranks among the top states in the nation for new business survival, according to newly released federal data that shows more than half of businesses launched in the Commonwealth remain open five years later.
Data from the U.S. Bureau of Labor Statistics indicates that 56 percent of businesses started in Pennsylvania are still operating after five years, the third-highest rate in the country. The national average stands at 51.6 percent, meaning nearly half of new businesses nationwide close within their first five years.
The figures track businesses that opened in the year ending March 2019 and remained active through March 2024, a period that includes the economic disruptions of the COVID-19 pandemic and subsequent inflationary pressures. Research cited by the Center for American Entrepreneurship shows Pennsylvania businesses are more likely to endure over time, reflecting sustained economic stability rather than short-term growth.
The data comes as Pennsylvania continues to receive national recognition for its economic performance. An analysis by Moody’s Analytics Chief Economist Mark Zandi found Pennsylvania is the only state in the Northeast with a growing economy. Since taking office, Governor Josh Shapiro and his administration have secured more than $35 billion in private-sector investment, generating over 18,000 jobs statewide.
State officials point to a series of policy initiatives aimed at improving the business climate, including permit and licensing reforms, investments in workforce development, and funding to prepare shovel-ready sites and support Main Street corridors. Pennsylvania has also enacted multiple tax cuts benefiting families, seniors, and small businesses.
National publications have reflected that momentum. Area Development ranked Pennsylvania among the top 20 best states for business and placed it in the top 10 for site readiness programs, while Site Selection Magazine listed the Commonwealth 11th in its 2025 business climate rankings, a seven-spot improvement from the prior year.
Pennsylvania’s latest budget continues funding permitting reforms and staffing at agencies responsible for processing licenses and certifications, while directing new investments toward community and economic development projects across the state.
Federal data shows Pennsylvania ranks third nationwide for five-year business survival, underscoring the state’s sustained economic growth under Governor Shapiro.
