PA ranks in top 5 for best states to start a business in 2023

Photo: PA.gov

The Forbes rankings of best states to start a business in 2023, released on November 30, 2022, consider factors that impact businesses and their ability to succeed, such as business costs, business climate, economy, workforce and financial accessibility in each state. Pennsylvania landed at number four on our list thanks to its availability of resources and funding for entrepreneurs.

The total small business loan funding in Pennsylvania is double that of the national average at $27.7 million. While Pennsylvania’s total is far less than California with the nation’s highest total funding of $97.1 million, the Keystone State’s funding is spread across fewer businesses, driving up the average amount per business—over 20% higher than California’s and 17% above the national average.

According to the report, while Pennsylvania is the most expensive state in terms of cost of living to make it into the top five, it is becoming a popular alternative to New York for its lower cost of living and higher business survival rate. On top of that, Pennsylvania’s income tax is less than one-third of New York’s at 3.07%—compared to 10.9%.

Startup Alleghenies offers Bedford, Blair, Cambria, Fulton, Huntingdon and Somerset counties free coaching to help entrepreneurs navigate the process of starting and growing a small business in PA.