Binah Winery in Allentown. (Marco Calderon Photography via Allentown Economic Development Corp.)The overwhelming majority of businesses in the Lehigh Valley are small businesses, and their importance is being recognized during National Small Business Week, which runs through May 6.
“Small businesses are crucial to our Lehigh Valley economy, making up about 84% of all business establishments. Not only do they provide jobs and encourage entrepreneurism, but they can grow into larger businesses and become regional assets,” said Kristin Cahayla-Hoffman, Vice President of Business Development and Attraction at Lehigh Valley Economic Development Corp. (LVEDC).
OraSure Technologies is an example of how a small business can blossom. Its founders got their start in one of the region’s business incubators, the predecessor to the current Ben Franklin TechVentures on the campus of Lehigh University.
Data released on April 27 by the Census Bureau showed there were 12,661 business establishments in the Lehigh Valley with fewer than 20 employees in 2021. That was an increase of 2.4% from 2020.
Small businesses that have opened recently include Travaglini, an Italian company that designs equipment to cure meats and other delicacies. The third-generation company, which distributes equipment in 54 countries, chose Allentown for its first U.S. location.
Once established, small businesses often expand. Green Leaf Productions, a studio that produces television shows, documentaries, and movies for major networks and local employers, recently doubled its square footage by purchasing a building in Hanover Township, Northampton County.
The manufacturing industry in the Lehigh Valley includes many small businesses that are helping to generate that sector’s cumulative economic output of $8.4 billion. Manufacturing is the largest contributor to the Lehigh Valley’s gross domestic product, which was a record $47 billion in 2021.
LVEDC supports small businesses through a variety of initiatives. It works with partners to encourage entrepreneurs, and collaborates with schools and colleges to design curriculum to develop the workforce.
LVEDC publicizes resources to help businesses get started, and it administers financing programs on behalf of the Lehigh Valley’s regional economic development organizations.
Small businesses get support from incubators such as Allentown Economic Development Corp.’s Bridgeworks Enterprise Center, and Bethlehem Economic Development Corp.’s Partnership for Innovation facility.
Small businesses are most common in the retail trade sector. The small business model is also prevalent in construction; health care and social assistance; professional, scientific, technical, and other services; and accommodation and food services.
The small business climate in the Lehigh Valley is representative of the climate across Pennsylvania. Statewide, about 85% of business establishments in 2021 had fewer than 20 employees. And their growth statewide was about on par with the growth in the Lehigh Valley.
“When we support small businesses, jobs are created, and local communities preserve their unique culture,” Gov. Josh Shapiro said in a proclamation recognizing Small Business Week.
According to the U.S. Small Business Administration, more than half of Americans either own or work for a small business. Those businesses create nearly two of every three new jobs nationwide annually.