The small business growth forecast for Scranton, Pennsylvania by 2025 reveals promising investments and opportunities, but what challenges lie ahead?
Scranton, Pennsylvania's small business sector is expected to grow by 2025, supported by $600 million in planned economic development investments and various financial assistance programs. The city has allocated $25 million to assist local businesses through the Main Street Matters program and offers grants up to $25,000 under the Small Business Recovery Grants initiative. With an unemployment rate of 3.20% and a projected job growth rate of 19%, the conditions are favorable. Additionally, the city's strategic location provides access to a vast consumer base, enhancing appeal for new ventures. Further insights on this growth outlook will be beneficial.
Scranton's population trends reveal a complex picture of stability and decline over the past two decades. Between 2000 and 2023, the city experienced a slight overall population decline of 1.02%, decreasing from 76,584 to 75,805 residents. Despite a peak in 2016 with 77,265 people, recent years saw a decrease of 362 individuals from 2021 to 2023. Significantly, the youth demographic, comprising 20.65% of the population under 18 years, reflects a critical aspect of demographic shifts in Scranton. The city maintains a median age of 37.3 years, indicating a balanced age distribution, although the youth dependency ratio stands at 25.2, highlighting the potential for future youth growth. In contrast, the overall decline from 2000 to 2023 has resulted in a decrease of 779 individuals, further emphasizing the challenges faced by the community.
From 2010 to 2020, Scranton's population stabilized, with a minimal average annual growth rate of 0.04%. However, fluctuations occurred, including a significant increase of 3,226 residents between 2009 and 2010, juxtaposed against a decrease of 769 from 2019 to 2020. Collectively, these trends illustrate the ongoing demographic shifts that shape Scranton's community dynamics, emphasizing the importance of understanding these changes for future planning and development.
Economic development investments are essential for revitalizing Scranton and driving growth in the region. Recent funding initiatives reveal a strong commitment to infrastructure investment and job creation, which are pivotal for economic sustainability. For instance, Fidelity Bank's expansion is backed by a $5 million investment through the Redevelopment Assistance Capital Program, resulting in the creation of 165 professional jobs in downtown Scranton. This initiative is part of a broader $600 million budget for new and expanded economic development investments targeted for 2024-2025.
Additionally, the allocation of $500 million for PA SITES funding will facilitate the development of critical commercial and industrial sites. The $25 million investment in the Main Street Matters program aims to enhance small businesses and commercial corridors, further boosting local economies. This approach aligns with the city's recent successful exit from Act 47 designation as a financially distressed community.
Strategic economic planning involves addressing population decline and fostering community engagement across diverse neighborhoods. By implementing extensive strategies, including investing in main streets and historical site restoration, Scranton is poised to strengthen its economic foundation. Overall, these investments not only promote job creation and infrastructure improvement but also lay the groundwork for a more vibrant and economically resilient Scranton.
In Scranton, robust support for small businesses is vital for fostering local economic growth and resilience. Various financial assistance programs are available to help you navigate challenges, including the ARPA Small Business Grants, which provide funding for pandemic-related hardships. There's also the Small Business Loan to Grant Program from HUD, offering gap loans that may convert to grants upon meeting job creation requirements. For early-stage businesses in low-moderate-income areas, the CDBG Small Business Micro-Grant Program provides funds ranging from $2,500 to $5,000.
In addition to financial aid, educational resources play an important role in your business's success. The University of Scranton Small Business Development Center (SBDC) offers free, confidential consulting and educational programs tailored for entrepreneurs. The Women's Entrepreneurship Center (WEC) provides guidance and support specifically for low-income women, while workshops and seminars help you develop significant skills for starting or growing your business. Furthermore, local government initiatives and partnerships with organizations such as NeighborWorks and Scranton Tomorrow enhance community development, ensuring that small businesses remain the backbone of Scranton's economy. These combined efforts create a supportive environment for your entrepreneurial endeavors. Notably, programs like the Small Business Recovery Grants offer funding up to $25,000 for businesses experiencing pandemic-related disruptions.
Attracting businesses to Scranton hinges on its strategic location and solid infrastructure. Situated in the heart of Pennsylvania's Northeast, you're within a two-hour drive of major metropolitan areas like Philadelphia, New York, and Harrisburg. Five major interstate highways converge in Scranton, granting access to 80 million consumers within an overnight drive and 80% of the U.S. population in two days or less. This logistical advantage is complemented by ongoing infrastructure improvements, enhancing the efficiency of business operations.
The Scranton Plan plays a pivotal role in business attraction, leveraging various economic development programs, including business incentives to encourage relocation and expansion. Partnerships with real estate developers, private business leaders, and local governmental leaders facilitate these initiatives, ensuring a streamlined process for new businesses. Additionally, resources like revolving loan funds (RLFs) and the CDBG Small Business Microgrant Program provide essential financial support for those unable to secure traditional financing.
With a highly skilled workforce and strong community support, Scranton not only attracts businesses but also sustains their growth, making it a compelling destination for entrepreneurs seeking new opportunities.
Understanding Scranton's economic landscape is essential for evaluating its growth potential in the coming years. As of October 2024, the unemployment rate in Scranton stands at 3.20%, considerably lower than the long-term average of 6.72%. Remarkably, the city achieved a record low of 2.7% in April 2024, indicating a robust labor market. However, the future job growth rate is projected at 19%, which lags behind the national average of 30.54%.
In terms of wage analysis, the average salary in Scranton is $44,161, with the highest-paying jobs found in Mining, Quarrying, and Oil and Gas Extraction, averaging $115,301. Yet, the average income of residents is only $25,132, starkly lower than the U.S. average of $37,638. Additionally, the median home cost is $135,700, which reflects the economic pressures faced by many families. Despite recent decreases in job numbers, particularly in the past year, sectors such as Health Care and Social Assistance show promise for future growth. These indicators provide a thorough overview of Scranton's economic environment, essential for understanding its trajectory toward small business growth by 2025.
To sum up, the forecast for small business growth in Scranton, Pennsylvania, by 2025 is nothing short of monumental. With strategic economic development investments, robust support networks, and targeted business attraction strategies, the city is poised to experience an unprecedented surge in entrepreneurial activity. Key economic indicators suggest a thriving environment, where small businesses can flourish. As Scranton embraces these opportunities, the landscape for local entrepreneurship will surely transform, paving the way for a prosperous future.
