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Celebrating Small Business Champions in Pennsylvania

Lawmakers and small business advocates come together to celebrate achievements in supporting entrepreneurship.

News Summary

The National Federation of Independent Business has recognized ten legislators in Pennsylvania for their exceptional support of small businesses. The ‘Guardian of Small Business Award’ was presented to these lawmakers, highlighting their efforts amidst the challenges faced by the small business community. As small enterprises encounter rising costs and economic uncertainties, supportive legislation appears crucial for their survival and growth. The event reflects the ongoing struggles and resilience of small businesses in the state, while also showcasing recent positive developments like company expansions.

Celebrating Small Business Champions in Pennsylvania

Pennsylvania is buzzing with excitement as the National Federation of Independent Business (NFIB) recently honored ten outstanding legislators for their unwavering support of small businesses across the state. On October 23, 2024, these legislators received the coveted Guardian of Small Business Award, which stands as the most prestigious accolade given by NFIB to those who tirelessly advocate for the state’s entrepreneurial spirit.

A Time to Celebrate

Among the delighted audience, Greg Moreland, the NFIB Pennsylvania State Director, expressed pride in recognizing these lawmakers who understand the crucial role that small businesses play in the economy. He highlighted the ongoing challenges facing Pennsylvania’s small business ecosystem, particularly as many struggle with rising costs and a pressing sense of uncertainty about what the future holds. Now, more than ever, supportive legislation is key to helping these small enterprises thrive.

The Backbone of the Economy

Small businesses are a vital part of Pennsylvania’s economy. However, recent polling uncovered a cloud of concern among small business owners regarding the ever-evolving economic landscape. Despite a welcome 2.5% increase in real gross domestic product (GDP) for Pennsylvania in 2024, which matches national averages, the situation still looks challenging for many.

In the Philadelphia area, prices for consumers and small businesses have soared by 21.7% since the days before COVID-19. This spike greatly contributes to the financial difficulties faced by those operating on tight budgets. In fact, statistics reveal a troubling 0.22% decline in revenue for small businesses with fewer than nine employees last September, after adjusting for inflation. That’s a clear indicator that many are still struggling to stabilize their footing.

Trends in Employment

The job market is looking a bit rocky as well. In September, overall employment in Pennsylvania dipped by a slight 0.025%, while weekly hours worked fell by 0.014% over the past year. Although Philadelphia saw a 0.04% increase in hours worked, it’s not enough to mask the challenges faced throughout the state. Job postings on Indeed have decreased significantly as well, down by 16% in the past year. Meanwhile, unemployment has edged up by 4% compared to last year.

Shifts in Wages and Spending

Despite the economic turmoil, average wage earners in Pennsylvania take home $31.63 per hour, which is nearly 3.5% below the national average of $32.77. In the past year, hourly and weekly wages saw modest increases of 2.67% and 2.47%, respectively. However, this wage growth lags behind the pace of the rising consumer price index. While Pennsylvania’s overall wages have jumped 4.5% in the past year, the growth hasn’t kept up with many other states.

Consumer spending has also seen fluctuations, dipping from 2.5% in 2022 to 2.2% in 2023. However, there’s hope on the horizon! Projections indicate spending may rebound to 1.8% in 2024 and rise by another 1.2% in 2025. It appears consumers may be turning to credit cards and savings to get by during tough times.

Looking Ahead

Pennsylvania ranks in the middle among all 50 states regarding its business environment, currently positioned 36th for overall growth, with a known poor tax climate. Many business owners report ongoing challenges, including price increases, employee retention issues, and anticipated changes to employment regulations. All these factors contribute to a somewhat complex landscape for entrepreneurs in the Keystone State.

Exciting Developments on the Horizon

Amid the economic hurdles, some businesses are aiming for growth! Notably, Guardian Protection, based in Allegheny County, has made waves by acquiring 8,300 commercial accounts and 4,300 residential accounts from Brinks Home. This expansion plan includes opening three new branches and maintaining jobs for nearly 60 former Brinks employees.

This acquisition represents Guardian’s fourth since 2021 and marks its largest acquisition concerning commercial accounts. These developments signal that while challenges persist for small businesses in Pennsylvania, there is also room for opportunity and growth.