6 Interesting Business Statistics for Pennsylvania
Pennsylvania has seen a decrease in unemployment rates over the past year due to the increase in start-up companies springing to life in the state. Most of the over 1.1 million small businesses start out by filing a Certificate of Organization to form an LLC. An LLC is a very popular business structure that protects the business owners personal assets from being seized for any business debts.
There are many advantages of starting a new business in Pennsylvania. Here are 6 interesting business statistics everyone that wants to start an LLC in Pennsylvania should know.
Small businesses make up 99.6% of the total businesses in Pennsylvania
Pennsylvania has a healthy number of small businesses estimated at over 1.1 million, employing over 2.5 million individuals. The U.S. Small Business Administration has highlighted the significant role small businesses play towards the states’ economic growth.
The state has the 6th largest economy in the U.S. worth an estimated $840 billion annually. This is due to its proximity to large business markets as well as their more than manageable tax rates.
Ranked #17 in America’s Top States for Business for 2022
Pennsylvania is ranked as a highly favorable state to do business due to its developed infrastructure, great education systems, technology and innovation and its access to capital. In addition, it has a rich and diverse culture and a low cost of living.
The “Keystone State” is committed to helping aspiring entrepreneurs succeed by offering resources such as training, guidance and other helpful initiatives in order to promote the success of launching a new business.
In addition, the labor market is competitive due to the uptake in technology companies specifically popping up in Philadelphia. The world class education system contributes to the large and skilled talent pool businesses are able to choose from.
GDP has grown at an annual rate of 1.2% over the last 5 years
Although the Gross Domestic Product (GDP) of Pennsylvania is trailing behind the national average, it has been increasing steadily to over $720 billion in the last few years. Finance, insurance, real estate, rental, and leasing has contributed nearly $125 billion towards GDP numbers. An industry that should not be forgotten is the food and agricultural industry with a contribution of over $135 billion to the state’s economy.
The top 3 GDP industries are Manufacturing, Real Estate and Healthcare
Totalling to around 37.7%, the manufacturing, real estate and healthcare industries are the largest contributors collectively to the state’s economy. According to The Pennsylvania Department of Community and Economic Development, other key industries include energy production, corporate headquarters and medical technology. The healthcare insurance sector is however the largest contributor to state revenue at $93.2 billion over the last year.
Transportation and warehousing has the biggest employment growth at 4.2% annually
Nationally, Pennsylvania ranks in the top 10 states for employment in warehousing, trucking and logistics. One of the biggest factors in the growth rate of transportation and warehousing is the states’ proximity to New York City. Real estate space is difficult to find in the already crowded big city, which makes Pennsylvanias’ Lehigh Valley a primary location for many companies like Amazon and Walmart.
Ranked 12th out of 50 states for disposable personal income (DPI)
DPI is measured by the amount of money an individual has left over for spending or saving after taxes have been collected. Disposable income is a key indicator when looking at the economic success of a region. In Pennsylvania the DPI points to good labor markets, high demand of aggregate and the financial strengths of households.
Pennsylvania is known for having some harsh winter conditions, but the state is showing some real economic growth. One of the major attractions is the state’s location to major cities like New York City, Washington, D.C, Baltimore and Cleveland. The accessibility without the high expense costs of running a business out of a major city is a big draw for businesses and entrepreneurs.
Residential housing construction has increased substantially, unemployment has decreased and tax cuts coupled with low cost of living rates makes this one of the best states in the U.S. to start a Limited Liability Company.