Pennsylvania has long struggled with a low entrepreneurship rate, with only .17% of adults launching new businesses in any given month in 2021, nearly half the national average. Recognizing the need for change, the Shapiro administration implemented reforms that have significantly reduced the time it takes for new businesses to receive their operating licenses, from an average of 40 days to just four. This is just one of the initiatives aimed at boosting entrepreneurship in the Keystone State.
The Pennsylvania Chamber of Business and Industry has been working closely with Governor Shapiro and the legislature to improve the business climate, particularly for startups. The state’s historically bureaucratic business climate and low entrepreneurship rate were top priorities for the incoming administration in 2023. Ben Kirshner, head of Pennsylvania’s Office of Transformation and Opportunity, spearheaded the creation of a 10-year economic development strategy to address these challenges.
One of the key focuses of the state’s efforts has been on improving business customer service and streamlining transactions with agencies like PennDOT. PAyback, a state website launched under Kirshner’s direction, provides entrepreneurs with a quick eligibility check for startup-related refunds. These initiatives aim to make it easier for businesses to navigate the regulatory landscape and access the resources they need to succeed.
Local business development organizations, such as the York County Economic Alliance’s BLOOM Business Empowerment Center, are also playing a crucial role in nurturing entrepreneurship. BLOOM provides grants, low-interest loans, and business resources to support new and existing businesses. The organization’s direct outreach efforts have been instrumental in helping businesses access much-needed funding and support.
Despite the challenges of fostering an entrepreneurial culture across a diverse state like Pennsylvania, efforts are underway to create regional hubs of innovation. The nth Innovation Center in Coatesville, for example, is a collaborative space for startups focused on sensing technologies. By bringing together complementary businesses and fostering a culture of collaboration, these hubs are helping to drive economic growth and innovation in their communities.
Pennsylvania’s commitment to supporting entrepreneurship is also evident in programs like Penn State Invent, which attracts outside entrepreneurs to startup incubators on the university’s satellite campuses. By providing mentorship, support, and a sense of community, these programs help entrepreneurs navigate the challenges of starting a business and contribute to the growth of the state’s startup ecosystem.
Overall, Pennsylvania is making significant strides in improving its business climate and supporting entrepreneurship. While there is still work to be done to overcome the state’s reputation for red tape, the progress made so far is encouraging. With a growing pipeline of new ventures and increased venture capital investment, Pennsylvania is sending a clear message that it is open for business and ready to support the next generation of entrepreneurs.
