Biz2Credit’s Annual ‘Top 25 Cities for Small Business’ Study Identifies San Jose as No. 1
2024年5月14日 - 6:45PM
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.