Best Cities for Small Business in Pennsylvania
Pennsylvania ranks #38 of 50 for small business, with a small business score of 46.1. Bethel Park is its best city for small business at 68.8.
- Pennsylvania, all states
- #38 of 50
- Population
- 32,881
What Small Business Should Know About Pennsylvania
Pennsylvania ranks #38 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 46/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Pennsylvania's overall tax burden is 8.58% of income, with a 6.86% income tax rate that applies to both personal and pass-through business income. The 6.34% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 39/100) with 4.3% unemployment shows healthy labor availability.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 65/100) produces a reasonably well-prepared workforce. A typical home value of $290,401 helps attract and retain employees who can afford to live nearby.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Bethel Park | A+ | 68.8 | 72.4 | 80 | 73 | 39 | 32,881 |
| 2Levittown | B+ | 64.3 | 62.1 | 73 | 61 | — | 50,926 |
| 3Drexel Hill | B+ | 58.3 | 59.5 | 64 | 46 | — | 30,451 |
| 4Easton | B+ | 53.7 | 61.8 | 40 | 50 | 41 | 29,739 |
| 5Bethlehem | B+ | 53.4 | 60.7 | 41 | 48 | 43 | 77,956 |
| 6Pittsburgh | B+ | 53.1 | 60.7 | 32 | 51 | 46 | 304,759 |
| 7Lancaster | B | 49.9 | 56.1 | 30 | 47 | 45 | 57,719 |
| 8Norristown | C+ | 49.8 | 55.0 | 35 | 51 | 42 | 35,893 |
| 9Altoona | C+ | 46.1 | 54.6 | 32 | 42 | 35 | 43,196 |
| 10State College | B+ | 44.8 | 62.0 | 5 | 40 | 35 | 41,050 |
| 11Allentown | C+ | 44.7 | 53.9 | 26 | 36 | 38 | 125,976 |
| 12Philadelphia | D | 43.2 | 47.8 | 28 | 39 | 38 | 1,579,706 |
| 13Scranton | C+ | 43.0 | 53.3 | 20 | 39 | 37 | 76,033 |
| 14York | C | 42.8 | 50.4 | 22 | 29 | 40 | 44,938 |
| 15Erie | C+ | 41.7 | 52.5 | 17 | 36 | 34 | 93,850 |
| 16Wilkes-Barre | D | 40.0 | 48.5 | 19 | 34 | 39 | 44,423 |
| 17Hazleton | C | 38.9 | 49.0 | 14 | 31 | 38 | 30,111 |
| 18Harrisburg | D | 37.5 | 47.3 | 6 | 31 | 34 | 50,287 |
| 19Reading | D | 35.2 | 45.8 | 6 | 29 | 36 | 95,242 |
| 20Chester | D | 35.1 | 44.8 | 5 | 22 | 36 | 33,619 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Pennsylvania for Other Lifestyles
Frequently Asked Questions
Is Pennsylvania a good state for small business?
Pennsylvania ranks #38 out of 50 for small business with a persona-weighted score of 46.1/100. Its strongest relevant category is Safety (78/100) and its weakest is Outdoor Access (20/100).
What is the best city for small business in Pennsylvania?
Bethel Park ranks #1 in Pennsylvania for small business with a score of 68.8/100, followed by Levittown and Drexel Hill.
What factors are most important for small business in Pennsylvania?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.