In a recent study, WalletHub created a ranking of the best and worst states to start a business, and Pennsylvania was placed at No. 45, writes Adam McCann for WalletHub.
According to the U.S. Bureau of Labor Statistics, 20 percent of startups don’t survive past their first year, and almost half fail to hit their fifth anniversary, due to inflation and labor market tightness.
“The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate,” said WalletHub analyst Chip Lupo. “On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally.”
To form its list, the site judged states based on 25 key metrics falling under the topics of Business Environment, Access to Resources, and Business Costs on a 100-point scale.
Pennsylvania was ranked the sixth worst in the country, with an overall score of 36.67.
The state ranked No. 47 in Business Environment, No. 34 in Access to Resources, and No. 36 in Business Costs.
The Keystone State had a below-average ranking in Average Growth in Number of Small Businesses, Availability of Human Capital, Cost of Living, Office Space Affordability, Labor Costs, Average Length of Work Week in Hours, and Industry Variety.
Read more about how Pennsylvania compares to other states across the country at WalletHub.
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