Analysis of more than 60,000 companies across the U.S. found that the Silicon Valley hub is the top city for small business; San Francisco in second place.
Newcomers include Colorado Springs, CO; Greater Bridgeport, CT; Salt Lake City, UT; Oxnard, CA; Minneapolis, MN; Port St. Lucie, FL; Hartford, CT; and Phoenix, AZ.
NEW YORK, May 14, 2024 (GLOBE NEWSWIRE) — The 2024 Biz2Credit Top Cities for Small Business Study has identified San Jose, California, as the top city for small businesses in its annual financial analysis that used data from 2023. According to Biz2Credit’s analysis, the other cities in the top five are: San Francisco, CA; Colorado Springs, CO; Seattle, WA; and Greater Bridgeport, CT.
The study examined financial indicators, including annual revenue, credit score, age of business, and the proprietary BizAnalyzer® scores of businesses that applied for funding with Biz2Credit during 2023. The analysis found that small businesses’ average revenue increased to $618,000 from $560,000 in 2022, along with an 11-point increase in average credit score (from 641 to 652), and a 12 month-increase in the average age of business (from 57 to 69).
Key Findings:
- The leading industries among the top cities are Accommodation and Food Services, Other Services (except Public Administration), and Construction.
- Average annual revenue increased by 10.4% to $618,000, compared to $560,000 in 2023’s ranking.
- Average expenses also increased by 13.8% to $489,000, from $430,000, resulting in a 1.1% decrease in average earnings, which fell from $130,000 in 2023 to $129,000 in 2024’s report.
- Average credit scores increased by 11 points from 641 to 652.
- The average age of business increased by 12 months, to 69 months, from 57 months.
- Eight cities are new to the list this year: Colorado Springs, CO (3); Bridgeport, CT (5); Salt Lake City, UT (11); Oxnard, CA (13); Minneapolis, MN (19); Port St. Lucie, FL (20); Hartford, CT (23); and Phoenix, AZ (25).
- Eight cities fell off the 2023 list: Milwaukee, WI; Kansas City, MO; San Antonio, TX; Austin, TX; Tampa, FL; Orlando, FL; Las Vegas, NV; and Miami, FL. Texas is not represented on this year’s list, while Florida is represented only by Port St. Lucie, a new entrant. Minneapolis is the only Midwestern city on the 2024 list.
Among new cities in the rankings, the Colorado Springs economy thrives on military, defense, aerospace, software/IT, and tourism. It is home to the U.S. Olympic Training Center, the Air Force Academy, and several military bases. Colorado Springs boasts a highly educated, diverse, and industrious workforce.
The Greater Bridgeport MSA includes Bridgeport, Norwalk, and Stamford, CT. Bridgeport has an active SMBE Department that supports small, women-owned, and minority-owned businesses by addressing their unique challenges through tailored resources and initiatives. The Stamford business community is a tight-knit ecosystem attracting a highly educated and talented workforce for the employment opportunities provided by Stamford’s diverse mix of industries, finance and real estate, technology, management and consulting, digital media, and healthcare make up the majority.
Five cities rose in the Biz2Credit rankings from last year, including San Jose (1); Seattle (4); Portland (7); Providence, RI (9); and Baltimore (10). At No. 22, Nashville remained unchanged.
Eleven cities dropped from in the annual rankings: No. 2 San Francisco (1); No. 6. San Diego (3); No. 8 New York City (4); No. 12 Boston (5); No. 14 Pittsburgh (10); No. 15 Denver (11); No. 16 Washington, D.C. (12); No. 17 Los Angeles (6); No. 18 Sacramento (2); No. 21 Philadelphia (19); and No. 24 Riverside, CA (13).
The Top 25 Cities for Small Business for this year (with 2023 ranking in parenthesis) are:
- San Jose, CA (7)
- San Francisco, CA (1)
- Colorado Springs, CO (unranked)
- Seattle, WA (9)
- Greater Bridgeport, CT (unranked)
- San Diego, CA (3)
- Portland, OR (8)
- New York City (4)
- Providence, RI (20)
- Baltimore, MD (14)
- Salt Lake City, UT (unranked)
- Boston, MA (5)
- Oxnard, CA (unranked)
- Pittsburgh, PA (10)
- Denver, CO (11)
- Washington, D.C. (12)
- Los Angeles, CA (6)
- Sacramento, CA (2)
- Minneapolis, MN (unranked)
- Port St. Lucie, FL (unranked)
- Philadelphia, PA (19)
- Nashville, TN (22)
- Hartford, CT (unranked)
- Riverside, CA (13)
- Phoenix, AZ (unranked)
*Greater Bridgeport encompasses Bridgeport, Norwalk, and Stamford, CT.
“Small businesses in San Jose had high average annual revenues ($1,008,279), strong average credit score (672), and are mature businesses,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance. “Clearly, San Jose and San Francisco, which rank No. 1 and No. 2 on our analysis are still the hub of America’s tech industry. Non-tech firms are benefiting as a result of companies and individuals doing well, a high tide raises all the boats.”
Methodology
The data included in this study was collected from submitted cases between Jan. 1, 2023, and Dec. 31, 2023. The study encompassed more than 60,000 applications. Biz2Credit set a threshold of 150 applications for an MSA (Metropolitan Statistical Area) to be included in the 2024 study. As a result, the MSA level analysis was based on 42,677 cases above the threshold. Data pertaining to state name, MSA, and ZIP code is from the U.S. Census.
The 2024 Top 25 Cities Study is based on actual verified cash flows of merchants on the Biz2Credit online funding platform during 2023. Submitted cases with an annual revenue exceeding $5 million were excluded from the revenue analysis. The ranking of cities in the study was established using Biz2Credit’s proprietary BizAnalyzer Score, which examines Credit Score, Annual Revenue, Age of Business, Debt-to-Income Ratio, and Cash Flow Analytics powered by Bank Statement Analyzer.
About Biz2Credit
Founded in 2007, Biz2Credit has arranged more than $8 billion in small business financing. The company is expanding its industry-leading technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. For more information, visit www.biz2credit.com, LinkedIn, Instagram, or Facebook.
Media Contact: John Mooney, (908) 720-6057, john@overthemoonpr.com.
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