The 2018 Best Cities for Small Business Growth study by Biz2Credit has revealed New York is the best city for small business growth.
Biz2Credit looked at cities across the country along with the data of small businesses including annual revenue, credits scores, and time in operation. It was then analyzed with the company’s BizAnalyzer by factoring cash flow, debt-to-income ratio, taxes and other information to determine the best cities.
The top 25 are all large cities, which give small businesses access to a large population and a diversified economy, providing more opportunities for growth. Biz2Credit CEO Rohit Arora, who oversaw the research, addressed this very point in the report.
He explains, “New York is where small businesses are making the most money, and New York companies far outpaced businesses based in other areas in annual revenues. The city has a diverse economy, and the sectors it is strong in — finance, IT, travel and tourism, real estate and construction — are thriving.”
The study looked at close to 30,000 businesses with under 250 employees, less than $10 million in annual revenue and more than a year of operation.
2018 Best Cities for Small Business Growth
New York kept its number one spot from 2017 to remain on top in 2018. According to Arora, the thriving tech industry in the city is also driving growth in other sectors, including fashion, food and beverage and hospitality.
It also helps that New York is an iconic city which attracts global talent across all industries.
Looking at the top 10, California is the clear leader when it comes to states with the most cities on the list. The Golden State had six cities in the top 10, capturing the No. 2, 4, 5, 6, 9 and 10 spots with San Jose, San Francisco, Los Angeles, Riverside-San Bernardino, San Diego and Sacramento.
Miami-Fort Lauderdale, FL; Washington, DC; and Austin, TX got the remaining top 10 positions at No. 3, 7 and 8 respectively.
Here are the top 25 cities for small business growth in 2018, with the results for 2017 in parenthesis:
- New York, NY (No. 1)
- San Jose, CA (No. 4)
- Miami-Fort Lauderdale, FL (No. 2)
- San Francisco, CA (No. 8)
- Los Angeles, CA (No. 5)
- Riverside-San Bernardino, CA (No. 10)
- Washington, DC (No. 16)
- Austin, TX (No. 3)
- San Diego, CA (No. 14)
- Sacramento, CA (No. 18)
- Phoenix, AZ (No. 7)
- Chicago, IL (No. 19)
- Dallas-Fort Worth, TX (No. 13)
- Seattle, WA (No. 6)
- Atlanta, GA (No. 20)
- Baltimore, MD (No. 12)
- Denver, CO (No. 17)
- Las Vegas, NV (No. 23)
- San Antonio, TX (No. 21)
- Detroit, MI (No. 15)
- Houston, TX (No. 11)
- Philadelphia, PA (No. 24)
- Portland, OR (No. 11)
- Charlotte, NC (No. 22)
- Kansas City, MO
Top 10 Metro Locations by Annual Revenue
Again, New York tops the list in this category with $1,016,446. The No. 2 and 3 positions were reversed from the best cities list, with Miami-Fort Lauderdale, FL coming in at No. 2 by averaging $854,540 and San Jose, CA at No. 3 with $748,529.
Here is the top 10 list for annual revenue:
- New York, NY, $1,016,446
- Miami-Fort Lauderdale, FL, $854,540
- San Jose, CA, $748,529
- Baltimore, MD, $726,707
- Riverside, CA, $725,713
- Dallas, TX, $685,531
- Los Angeles, CA, $674,543
- San Francisco, CA, $657,216
- Chicago, IL, $620,036
- Sacramento, CA, $587,682
Age of Business
The age of the small businesses in a city also indicates which have the greatest startup growth. When it came to the cities with the youngest businesses on average, Portland, OR and Las Vegas, NV were tied with 44 months each. Atlanta, GA, Denver, CO, and Philadelphia, PA, rounded out the top five startup cities with with average business ages of 47, 48, and 51 months respectively.
Top 10
- Portland, OR, 44 months
- Las Vegas, NV, 44 months
- Atlanta, GA, 47 months
- Denver, CO, 48 months
- Philadelphia, PA, 51 months
- Austin, TX, 51 months
- Charlotte, NC, 52 months
- San Antonio, TX, 52 months
- Houston, TX, 55 months
- Dallas, TX, 55 months
Credit Scores
When sorted by average credit score in each city, California dominated the list with five cities. San Jose came in at No. 1 with a score of 654, followed by New York at No. 2 with 639, and Riverside, CA at No. 3 with 638.
San Francisco and Miami-Ft. Lauderdale were No. 4 and 5 respectively with scores of 633 and 631.
Top 10 Cities Listed by Credit Score
- San Jose, CA, Score: 654
- New York, NY, 639
- Riverside, CA, 638
- San Francisco, CA, 633
- Miami-Ft. Lauderdale, 631
- Los Angeles, CA, 631
- Washington, DC, 627
- Las Vegas, NV, 623
- Sacramento, CA, 623
- Atlanta, GA, 616
You can look at the Biz2Credit infographic below to get more information.
Image: Biz2Credit
This article, “NYC Rates Best for Small Business Growth Second Year Running, Says Biz2Credit” was first published on Small Business Trends