The 2024 Biz2Credit Top 25 Cities for Small Business Study 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 top 5 cities 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.
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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)
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*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,” Rohit Arora, CEO of Biz2Credit, said. “Clearly, San Jose and San Franciso, 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.”
