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Analysis Examined Markets with the Highest Annual Revenue, Credit Scores and Other Factors
Biz2Credit, the leading online platform for small business finance, has identified the Riverside-San Bernardino, CA, as the 'Best Small Business City for Minority Entrepreneurs in America,' based on a weighted average that includes annual revenue, credit score, age of business (in months), and a proprietary BizAnalyzer score that takes into account cash flow, debt-to-income ratio, and business owners' personal credit scores. Minority businesses in Riverside-San Bernardino had the highest business revenues and the second highest BizAnalyzer score in 2014, according to the study. It also placed in the top ten for highest average credit score, while edging two of America's powerhouse cities Los Angeles and Chicago.
"The positioning of Riverside-San Bernardino makes it a prime location for immigrants of Central America," explained Biz2Credit CEO Rohit Arora, one of the nation's leading experts in small business finance, who oversaw the research. "Overall, the Riverside area is a hotbed for business activity at the moment. Its support networks including incubators and a high profile 'Shop Riverside'."
The New York metro area finished in second place, while Houston ranked third in the study. Minority businesses in the New York metro area, which improved from No. 8 overall last year, ranked highest on the list in the average credit score and BizAnalyzer score categories. While, Houston ranked in the Top 10 in three out of the four categories analyzed (BizAnalyzer scores, credit scores and revenue). Last year, Houston ranked as the 15th best city for minority business owners.
The state of California incredibly had seven cities that ranked in the Top 25, including the top city. While Texas and Florida each had three areas represented in the Top 25.
- Riverside-San Bernardino, CA
- New York Metro
- Houston, TX
- Detroit, MI
- Charlotte, NC
- Chicago, IL
- Denver, CO
- Las Vegas, NV
- San Francisco-Oakland, CA
- Miami, FL
- Seattle, WA
- Los Angeles, CA
- Atlanta, GA
- Philadelphia, PA
- Dallas, TX
- Orlando, FL
- San Diego, CA
- Tampa-St. Petersburg, FL
- Phoenix, AZ
- Sacramento, CA
- San Antonio, TX
- Fresno, CA
- San Jose, CA
- Washington D.C.
- Virginia Beach, VA
The Top 25 metro areas by Annual Revenue featured two of best cities in the Top 3 overall for minority entrepreneurs including Riverside-San Bernardino (No. 1) and the New York Metro area (No. 3) at the top of the list.
"Last year, Philadelphia emerged as a Top 5 city for highest revenue thanks to its strong showing in the retail trade industry," Arora explained.
Top 25 Metro areas with the highest applications in 2014
| Top 25 Metro areas with the highest applications in 2014 | Average BizAnalyzer Score | Average Business Age (Months) | Average Annual revenue | Average Credit Score |
|---|---|---|---|---|
| Riverside-San Bernardino-Ontario, CA | 60 | 33 | $4,853,837.21 | 635 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 50 | 26 | $2,287,303.75 | 584 |
| New York-Newark-Jersey City, NY-NJ-PA | 66 | 76 | $1,691,916.07 | 653 |
| Detroit-Warren-Dearborn, MI | 50 | 25 | $1,200,611.22 | 649 |
| Charlotte-Concord-Gastonia, NC-SC | 59 | 58 | $1,158,666.67 | 635 |
| Tampa-St. Petersburg-Clearwater, FL | 54 | 33 | $909,480.08 | 585 |
| Houston-The Woodlands-Sugar Land, TX | 57 | 43 | $889,693.19 | 649 |
| San Francisco-Oakland-Hayward, CA | 55 | 43 | $727,640.77 | 609 |
| Orlando-Kissimmee-Sanford, FL | 52 | 28 | $714,703.67 | 589 |
| Las Vegas-Henderson-Paradise, NV | 54 | 29 | $691,625.67 | 627 |
| Atlanta-Sandy Springs-Roswell, GA | 51 | 26 | $663,942.13 | 599 |
| Los Angeles-Long Beach-Anaheim, CA | 55 | 46 | $471,801.31 | 631 |
| San Diego-Carlsbad, CA | 55 | 52 | $443,308.20 | 618 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 56 | 43 | $436,579.93 | 620 |
| Denver-Aurora-Lakewood, CO | 49 | 13 | $366,277.78 | 644 |
| Dallas-Fort Worth-Arlington, TX | 55 | 41 | $349,744.32 | 624 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 54 | 53 | $348,952.40 | 605 |
| Phoenix-Mesa-Scottsdale, AZ | 57 | 59 | $337,911.76 | 609 |
| Chicago-Naperville-Elgin, IL-IN-WI | 55 | 26 | $317,363.60 | 634 |
| San Jose-Sunnyvale-Santa Clara, CA | 57 | 46 | $288,805.61 | 563 |
| Sacramento-Roseville-Arden-Arcade, CA | 50 | 20 | $250,315.59 | 591 |
| Fresno, CA | 55 | 40 | $212,072.77 | 581 |
| Seattle-Tacoma-Bellevue, WA | 54 | 29 | $203,306.88 | 647 |
| San Antonio-New Braunfels, TX | 46 | 16 | $107,545.48 | 600 |
| Virginia Beach-Norfolk-Newport News, VA-NC | 46 | 53 | $53,925.10 | 584 |
| National Average | 54 | 43 | $708,199.84 | 617 |
When sorted by Age of Business (in months),Denver was the leader, indicating that it is a hotbed of business development. San Antonio and Sacramento were second and third respectively.
"The emergence of the legal marijuana industry in Colorado has spurred to economic growth in the Mile High City," Arora said. "There is a lot growth in the back office technology segment in Denver, as well."
Top 25 Metro areas with the highest applications in 2014
| Top 25 Metro areas with the highest applications in 2014 | Average BizAnalyzer Score | Average Business Age (Months) | Average Annual revenue | Average Credit Score |
|---|---|---|---|---|
| Denver-Aurora-Lakewood, CO | 49 | 13 | $366,277.78 | 644 |
| San Antonio-New Braunfels, TX | 46 | 16 | $107,545.48 | 600 |
| Sacramento-Roseville-Arden-Arcade, CA | 50 | 20 | $250,315.59 | 591 |
| Detroit-Warren-Dearborn, MI | 50 | 25 | $1,200,611.22 | 649 |
| Atlanta-Sandy Springs-Roswell, GA | 51 | 26 | $663,942.13 | 599 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 50 | 26 | $2,287,303.75 | 584 |
| Chicago-Naperville-Elgin, IL-IN-WI | 55 | 26 | $317,363.60 | 634 |
| Orlando-Kissimmee-Sanford, FL | 52 | 28 | $714,703.67 | 589 |
| Las Vegas-Henderson-Paradise, NV | 54 | 29 | $691,625.67 | 627 |
| Seattle-Tacoma-Bellevue, WA | 54 | 29 | $203,306.88 | 647 |
| Riverside-San Bernardino-Ontario, CA | 60 | 33 | $4,853,837.21 | 635 |
| Tampa-St. Petersburg-Clearwater, FL | 54 | 33 | $909,480.08 | 585 |
| Fresno, CA | 55 | 40 | $212,072.77 | 581 |
| Dallas-Fort Worth-Arlington, TX | 55 | 41 | $349,744.32 | 624 |
| Houston-The Woodlands-Sugar Land, TX | 57 | 43 | $889,693.19 | 649 |
| San Francisco-Oakland-Hayward, CA | 55 | 43 | $727,640.77 | 609 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 56 | 43 | $436,579.93 | 620 |
| Los Angeles-Long Beach-Anaheim, CA | 55 | 46 | $471,801.31 | 631 |
| San Jose-Sunnyvale-Santa Clara, CA | 57 | 46 | $288,805.61 | 563 |
| San Diego-Carlsbad, CA | 55 | 52 | $443,308.20 | 618 |
| Virginia Beach-Norfolk-Newport News, VA-NC | 46 | 53 | $53,925.10 | 584 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 54 | 53 | $348,952.40 | 605 |
| Charlotte-Concord-Gastonia, NC-SC | 59 | 58 | $1,158,666.67 | 635 |
| Phoenix-Mesa-Scottsdale, AZ | 57 | 59 | $337,911.76 | 609 |
| New York-Newark-Jersey City, NY-NJ-PA | 66 | 76 | $1,691,916.07 | 653 |
| National Average | 54 | 43 | $708,199.84 | 617 |
When sorted by Credit Score, the New York Metro area was the leader, with Houston and Detroit placing just behind them.
Top 25 Metro areas with the highest applications in 2014
| Top 25 Metro areas with the highest applications in 2014 | Average BizAnalyzer Score | Average of Age in Months | Average Annual Revenue | Average Credit Score |
|---|---|---|---|---|
| New York-Newark-Jersey City, NY-NJ-PA | 66 | 76 | $1,691,916.07 | 653 |
| Houston-The Woodlands-Sugar Land, TX | 57 | 43 | $889,693.19 | 649 |
| Detroit-Warren-Dearborn, MI | 50 | 25 | $1,200,611.22 | 649 |
| Seattle-Tacoma-Bellevue, WA | 54 | 29 | $203,306.88 | 647 |
| Denver-Aurora-Lakewood, CO | 49 | 13 | $366,277.78 | 644 |
| Charlotte-Concord-Gastonia, NC-SC | 59 | 58 | $1,158,666.67 | 635 |
| Riverside-San Bernardino-Ontario, CA | 60 | 33 | $4,853,837.21 | 635 |
| Chicago-Naperville-Elgin, IL-IN-WI | 55 | 26 | $317,363.60 | 634 |
| Los Angeles-Long Beach-Anaheim, CA | 55 | 46 | $471,801.31 | 631 |
| Las Vegas-Henderson-Paradise, NV | 54 | 29 | $691,625.67 | 627 |
| Dallas-Fort Worth-Arlington, TX | 55 | 41 | $349,744.32 | 624 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 56 | 43 | $436,579.93 | 620 |
| San Diego-Carlsbad, CA | 55 | 52 | $443,308.20 | 618 |
| Phoenix-Mesa-Scottsdale, AZ | 57 | 59 | $337,911.76 | 609 |
| San Francisco-Oakland-Hayward, CA | 55 | 43 | $727,640.77 | 609 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 54 | 53 | $348,952.40 | 605 |
| San Antonio-New Braunfels, TX | 46 | 16 | $107,545.48 | 600 |
| Atlanta-Sandy Springs-Roswell, GA | 51 | 26 | $663,942.13 | 599 |
| Sacramento-Roseville-Arden-Arcade, CA | 50 | 20 | $250,315.59 | 591 |
| Orlando-Kissimmee-Sanford, FL | 52 | 28 | $714,703.67 | 589 |
| Tampa-St. Petersburg-Clearwater, FL | 54 | 33 | $909,480.08 | 585 |
| Virginia Beach-Norfolk-Newport News, VA-NC | 46 | 53 | $53,925.10 | 584 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 50 | 26 | $2,287,303.75 | 584 |
| Fresno, CA | 55 | 40 | $212,072.77 | 581 |
| San Jose-Sunnyvale-Santa Clara, CA | 57 | 46 | $288,805.61 | 563 |
| National Average | 54 | 43 | $708,199.84 | 617 |
"Credit scores and the overall health of small businesses around Detroit are surprisingly strong. The auto makers' comeback has sustained, helped, in part, by low gas prices " explained Arora. "Manufacturing has become so high tech, and IT companies related to the renewed strength of the auto industry has translated into success for the area. IT companies are growing, as are staffing companies."
About the Biz2Credit Best Small Business Cities in America Study
Biz2Credit analyzed 12,000 businesses with less than 250 employees and less than $10 million in annual revenues from across the country that have been in operation for more than 1 year.