Harrisburg, PA – 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, underscoring the strength and resilience of the Commonwealth’s economy under Governor Josh Shapiro’s leadership.
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. Since taking office, Governor Shapiro and his Administration have secured over $35 billion in private-sector investment, creating more than 18,000 jobs across the Commonwealth, and cut taxes seven times for families, seniors, and small businesses.
Pennsylvania’s Business Climate and Growing Economy is Getting National Recognition
From day one, the Shapiro Administration has made economic competitiveness and government efficiency top priorities — launching Pennsylvania’s first comprehensive Economic Development Strategy in nearly two decades, cutting permit and licensing backlogs, and investing hundreds of millions of dollars to prepare shovel-ready sites, strengthen Main Streets, and support small businesses statewide. Additionally,
Area Development ranked Pennsylvania among the top 20 “Best States for Business” — the only Northeastern state to make the list — and placed the Commonwealth in the top 10 for “Site Readiness Programs.”
Site Selection Magazine has named Pennsylvania one of the top business climates in the nation. The Commonwealth is 11th in the 2025 Business Climate Rankings, up seven spots from last year.
The 2025-26 budget signed by Governor Shapiro continues to make historic progress on permitting reform, funds key staff at agencies responsible for processing permits, licenses, and certifications, and invests in Pennsylvania’s main streets.
Learn more about the Shapiro Administration’s efforts to support Pennsylvania’s workers and businesses and spur the economy, and discover how the Administration is creating economic opportunity to build a stronger, more competitive economy for all Pennsylvanians.
# # #