Pennsylvania is a great place in America where you can easily run a profitable business. It has over 1 million small businesses fueled by low cost of living, business support from government agencies, strategic location, qualified workforce, and other favorable opportunities which have made the keystone state an ideal place for small business owners.

The Economic Outlook of Pennsylvania

According to Wikipedia, Pennsylvania is the fifth-most populous state in the nation with 12.96 million people as of 2021. The Keystone State is the 33rd-largest state by area and ranks No. 17 among the best US states for starting a business with a top corporate tax rate of 9.9%.

Unlike Kentucky which expanded its taxables to include software products, Pennsylvania is experiencing a decreasing corporate tax to help provide more incentives to businesses in the state.

About 5% of the Fortune 500 companies in America have their headquarters in the state. 

Reputable Companies such as Aramark, Independence Blue Cross, Comcast, PNC Financial Services Group, Rite Aid have grown and expanded from the keystone state.

Also, doing Business in Pennsylvania will offer you opportunities in neighboring states such as New York City, New Jersey, Delaware, Maryland, Ohio, and West Virginia.

You may be wondering… What Profitable Small Business ideas can thrive in Pennsylvania?

Here are some to consider:

Hospitality Services

Pennsylvania has a rich history and interesting landscapes which serve as a huge tourist attraction.  

Presque isle state park, Eastern state penitentiary, Gettysburg national military park, Hersheypark, and Carnegie museum of natural history are some of the great places visitors from Canada, Australia, Nederland, Dubai, and many other countries of the world love to see.

Each year, Pennsylvania Travel Industry generates more than $43.3 billion annually from visitor spending and supporting over half a million jobs. This provides a huge opportunity for anyone who plays in this space.

you could create your own tourist attraction business, provide accommodation, and sell tourist Kits or guide services to visitors.

You could start a Restaurant, Hotel, Airbnb, coffee shop, travel agency, jet rental services, hotels, photography, and the likes around the tourist happy centers and make money.

Also, you can leverage technology and start a travel blog.  What You need is a domain from Namecheap and host it to launch your blog immediately.

If you establish yourself as a go-to expert in the area of tourism, you will attract the patronage of people coming to Pennsylvania, United States on tourist visas.

You can also sell products, services, and even adverts on your blog.

You can even partner with other businesses as a JV and affiliate marketer and make more money for yourself in the process.

Agriculture and food processing

Pennsylvania is rich in natural resources with a lucrative food industry which makes it a great place for Agribusiness.

Livestock farming is one of the most thriving business ideas in the state.

How much does it cost to start a livestock business?

Starting a livestock farming business could cost you from $20,000 and above depending on the scale.

Furthermore, if you have a property in Pennsylvania and want to start an Agric business, you could grow and rise your own products.

Other areas to consider could be Dairy, Fish, Anima rearing, Pig, rabbit, and even Goat farming.

If you are in the urban setting, you can still run an agribusiness on a smaller scale. Think rooftop gardens or indoor farming. 

Just make sure you plan your business properly and start small then scale as you get clarity along the way.

Manufacturing and custom packaging

How do I start a small manufacturing business?

To start a manufacturing business in Pennsylvania, you have to study the market based on your interest and available capital.

When the market is identified, then you can create a business plan to guide you.

coconut oil and olive oil production, furniture making, textile, food processing, chemicals, etc are some Manufacturing and processing ideas you can try out in Pennsylvania.

You can process and package your products and serve as a local supplier to small and big manufacturing companies like Estée Lauder, and PepsiCo which are situated in Pennysalvia.

Professional Services 

More than 1 million small businesses and 21 Fortune 500 companies are in Pennsylvania. This provides loads of opportunities to create a service-based business in the state.

You could get the right certification and create a Limited Liability Company to offer your skills as a service to both old and new businesses that would surely be needing them.

Food Business.

The state of Pennsylvania has good food and Agric industry which makes it an excellent place for food business.

Even if you don’t want to start a full-fledged restaurant in the state, anything else from a food truck to making sauces in your kitchen will be a great idea.

Child Care

Pennsylvania is a low-cost State with many opportunities and a strong educational system.  This makes lots of families enjoy living and raising their kids there.

This provides opportunities for Childcare related businesses such as crèche and daycare.

You just have to do your research to know the necessary Pennsylvania childcare licensing requirements before you proceed.

Tech Related Business

Technology is the bedrock of every business now. You can capitalize on this to start a company that will use technology to power and support businesses.

Areas such as digital marketing, Website creation, Content management, Social media management, data analytics, computer servicing firm, and the likes are worth considering.

Technology companies like Sungard AS, SAP America Inc., Bentley Systems, and many others are thriving in Pennsylvania. You too can join these technology companies to grow your Saas or tech-related ideas into a profitable business.

Best Cities in Pennsylvania for Starting a Business

Places like Philadelphia, Pittsburg, and Allentown are great places to start a profitable business in Pennsylvania. They offer different types of incentives to help businesses thrive.

The ideas we listed can easily be developed as a home-based business and you have a huge market and support from the state to help them become viable.

Do your research and see which of them might work for you.