Biz2Credit unveiled its Small Business Earnings Report, a new monthly report examining the financial health of small businesses in America. The study looks at the performance of small to midsized firms in the U.S. — from early stage to established companies — that applied for financing via Biz2Credit’s online funding platform during the past month.
The report tracks earnings, revenues and expenses of companies, and inflation over time. Key components include revenue growth (monthly and year-over-year average), expenses and estimated earnings and profitability (measuring how much profit businesses are earning.
Key Findings for 2024
- The average earnings for the first 11 months of 2024: $86,809. Average revenue thus far this year is $747,618, while average expenses total $660,809.
- Inflation overall for the first 11 months of 2024 is 2.96%, which is still above the Fed’s target rate of 2.0% when determining lending interest rates, but below the average rate for 2023 (4.1%) and 2022 (8%).
- Average revenues ($824,700) were highest in the month of July, while average expenses were highest ($709,000) in October. July was the month with the highest earnings ($136,800).
- When contrasting with results from 2023, average revenues for the first 11 months of 2024 were higher by $232,410 ($747,618-$515,208), average expenses are up $296,517 ($660,809-$364,292), and profits are lower by $64,108 ($86,809-$150,917) in 2023.
“The Biz2Credit Small Business Earnings Report provides a measure of the financial health of small businesses. While the inflation rate has been trending lower since 2022, the overall cost level has increased, and small business owners cannot raise their prices to compensate. Prices for fixed items such as leases, insurance, and equipment have soared, while variable costs, such as labor, also continuously rise. Small businesses are being crunched,” Rohit Arora, CEO and co-founder of Biz2Credit, who oversaw the research, said. “Our Small Business Earnings Report is a pulse on the profitability of small businesses in the economy right now. America needs to pay attention to how small businesses are doing. They are the backbone of the U.S. economy and create the lion’s share of jobs in the private sector. As President-elect Trump focuses on inflation, interest rates, and the economy overall when he returns to the White House, I expect that the growth of small businesses will be among his priorities.”
