Lancaster’s small business growth forecast for 2025 hints at exciting opportunities—discover what factors are fueling this promising trend.
By 2025, Lancaster, Pennsylvania, anticipates notable small business growth, bolstered by a low 2.1% unemployment rate and favorable financial initiatives such as a $20 million investment in the Main Street Matters Program. The city has experienced job growth, adding 1,400 positions in Q2 2024, and maintains low commercial vacancy rates, enhancing stability for new ventures. Regulatory changes will simplify the business landscape, while community support through programs like SCORE and ASSETS Lancaster assists entrepreneurs in developing essential skills. With technological advancements in place, Lancaster's small businesses are well-positioned for continued success in the evolving economy ahead. Explore more details to understand these dynamics further.
As we look ahead to 2025, the economic outlook for Lancaster County appears promising, bolstered by record low unemployment rates and a resilient labor force. Currently, the unemployment rate stands at an impressive 2.1%, a figure that highlights the county's robust labor market. In the second quarter of 2024, employment levels saw a surge with an increase of 1,400 jobs compared to the previous quarter, suggesting positive momentum. However, the labor market does face challenges, particularly in sectors like Manufacturing, Health Care, and Professional Business Services, where employers struggle to find workers with specific skills.
Despite a slight decline in employment within the Professional and Business Services sector, other sectors like Education and Health Services, along with Leisure and Hospitality, experienced growth of 1.0% and 1.9%, respectively, over the past year. Additionally, low commercial vacancy rates indicate a stable commercial sector, further supporting economic resilience. The influx of younger workers aged 16-19, who increased by 4.5% from 2017 to 2022, adds fresh talent to the labor market, which is critical for adapting to evolving industry trends as Lancaster County moves into 2025. Furthermore, the 2025 budget emphasizes maintaining essential services, which is likely to contribute positively to the overall economic environment.
Lancaster County's financial landscape is set for significant growth in 2025, thanks to a series of strategic investments and reforms aimed at supporting small businesses. With $20 million allocated to the Main Street Matters Program and $500 million earmarked for economic development, these initiatives foster an environment conducive to cost management and revenue generation. The phased reduction of the Corporate Net Income Tax from 8.49% to 7.99% will alleviate financial burdens, enabling businesses to retain more earnings for reinvestment. Additionally, the increase in the Net Operating Loss Deduction Limit allows businesses to offset up to 80% of taxable income by 2029, enhancing financial stability. The Community First Fund and ASSETS Lancaster provide essential loans and technical assistance, ensuring small businesses have access to crucial resources for growth. Lancaster County's budget strategies, including the use of American Rescue Plan Act funds, aim to bolster revenues while managing expenses through a proposed hiring freeze and reductions in operating costs. These financial measures collectively position small businesses for sustainable growth, ensuring they can thrive in a competitive marketplace by optimizing operations and enhancing profitability. Furthermore, the county's projected deficit of $5.4 million may still be covered by revenues, showcasing a commitment to maintaining financial health.
In 2025, a robust array of business-friendly initiatives will transform Lancaster County into an attractive hub for entrepreneurs and established companies alike. The county will implement regulatory changes aimed at simplifying the business landscape, ensuring that both new ventures and existing businesses can thrive. By fostering community partnerships, Lancaster will create a collaborative environment where local institutions provide essential resources and training, enhancing the workforce's skills and attracting high-paying, skilled labor. The emphasis on household sustaining employment will serve as a foundation for the city's economic growth, ensuring that job creation aligns with community needs.
Economic Development Zones will offer specialized programs designed to stimulate growth, while the Keystone Innovation Zone (KIZ) Program will continue to provide tax credits up to $100,000 annually for innovative businesses. Moreover, the City Revitalization and Improvement Zone (CRIZ) grants will support businesses in targeted districts, encouraging investment in local communities.
The Lancaster Chamber of Commerce will advocate for a positive business climate, promoting clear communication regarding progress and plans. Additionally, initiatives like On-the-Job Training programs will help offset training costs, making it easier for companies to invest in new hires. These initiatives collectively aim to create a thriving economic environment that encourages private sector ventures and job creation throughout Lancaster County.
Support systems for small businesses play an important role in fostering growth and sustainability in Lancaster County. These systems encompass a variety of mentoring programs and resource networks that provide entrepreneurs with the tools needed for success. For instance, SCORE of Lancaster offers free, face-to-face mentoring, along with affordable seminars covering business fundamentals, financial planning, and marketing strategies. Additionally, ASSETS Lancaster hosts an extensive 13-week Business Design and Management Program, equipping participants with critical skills.
Financial assistance is also crucial, with organizations like the Community First Fund providing loans and technical support tailored for small business owners. The Main Street Matters Program allocates $20 million to bolster small businesses and commercial corridors, while the PA SITES Program invests $400 million into developing competitive sites for business expansion.
Networking opportunities abound through platforms like Cultivate Lancaster and SCORE Business Roundtables, facilitating collaboration among entrepreneurs. The Duke Street Business Center offers access to authoritative databases and technology training, enhancing the overall resource network available to small businesses. Together, these support systems create a robust foundation for business growth and development in Lancaster County.
Technological advancements are revolutionizing the way small businesses operate and grow, bringing unprecedented opportunities for innovation and efficiency. In Lancaster, the adoption of digital transformation is evident through local government initiatives, such as PennDOT's plan to implement 3-D engineered models for project designs by 2025. This shift from traditional 2-D plans to data-rich, digital models enhances project accuracy and asset information management. In addition, the launch of PAyback.pa.gov by Governor Shapiro's administration exemplifies efforts to streamline licensing processes, making it easier for small businesses to navigate regulations.
The investment in workforce training is equally important, as programs at institutions like the Lancaster County Career & Technology Center focus on improving IT infrastructure and expanding postsecondary offerings. This investment not only prepares the future workforce for the demands of a digitized economy but also supports local businesses in adopting innovative practices. With a $20 million investment in the Main Street Matters Program and expedited business filing processes, small businesses in Lancaster can leverage these technological advancements to enhance their operational efficiency and competitiveness, ensuring a robust growth forecast leading into 2025.
To sum up, Lancaster's small business landscape is poised for significant growth by 2025, driven by economic stability, supportive initiatives, and technological advancements. As entrepreneurs embrace innovation, they'll find opportunities for expansion, community engagement, and enhanced financial performance. With a collaborative environment fostering resilience and adaptability, small businesses can thrive and contribute to a robust local economy. Ultimately, the combination of strategic support and a proactive business climate will shape a promising future for Lancaster's entrepreneurial ecosystem.
