Ed Gruver//October 30, 2023
Pennsylvania ranks among the top 10 states in the U.S. for small business survival, according to a new study.
Capital on Tap, listed in a release as a business credit card expert, conducted research to determine the states with the best chance for small business survival in time frames of one, three, and five years. Data from the U.S. Bureau of Labor Statistics was used to reveal the percentage of start-ups that remain active after three years.
Pennsylvania is listed seventh overall in small business survival rate. Massachusetts is first, followed by Wisconsin, South Dakota, Minnesota, Iowa, and North Dakota. Pennsylvania’s rate of small business survival is 80.69% for one year, 63.51% for three years, and 53.18% for five years.
“Despite the grueling statistic that 20% of American small businesses fail within their first year, it’s reassuring to see that many states offer a strong environment for businesses to grow,” Capital on Tap Chief Legal, America and Product Officer Damian Brychcy said in a statement.
“There are over 30 million small businesses in the U.S., making up an enormous percentage of the economy, and as this number continues to grow, so will innovation and commercial drive. This research should serve as a positive sign to entrepreneurs in the top ten states who are thinking about starting a business.”
New Hampshire, Arizona, Tennessee, Arkansas, and Rhode Island rank as the five states with the lowest rate of small business survival.