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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 San Diego, CA, as the 'Best Small Business City for Women 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. San Diego ranked in the top five in two different measurements: average credit score and BizAnalyzer score. It also placed in the top ten for highest average annual revenue.
"Retail trade, an industry typically dominated by female entrepreneurs, is thriving in San Diego," explained Biz2Credit CEO Rohit Arora, one of the nation's leading experts in small business finance, who oversaw the research. "The City of San Diego's Economic Development Division has established many initiatives that women business owners have been taking advantage of to grow their companies. There is a budding technology center, and the city is emerging from the shadow of other booming California cities"
Similar to the national study, Chicago, IL, finished as the "Second City" on the Biz2Credit ranking. The Windy City placed in the Top 5 for BizAnalyzer score and average credit scores and in the Top 10 for highest average annual revenue. Last year, Chicago ranked as the 14th best city for women business owners.
"The Women's Development Center offers one-on-one business counseling at the Small Business Solution Station in Chicago and has been instrumental in the growth of women-owned businesses," suggested Arora, whose company has provided more than $1.2 billion in financing to small and mid-sized businesses since 2007.
New York, the nation's financial hub and a booming technology sector, improved to No. 7 this year on Biz2Credit's Best Small Business Cities for Women Entrepreneurs ranking, up from No. 8 last year.
"High fixed operating costs prevent New York from placing higher on our rankings," Arora explained. "Rent and taxes are high across the city, and businesses are tightly regulated."
The state of California had six cities that ranked in the Top 25, including four in the Top 10. While Texas and Florida each had three areas represented in the Top 25.
"Surprisingly, Baltimore represented the region of the youngest average age of women-owned businesses," explained Arora. "The average age of women-owned businesses in Baltimore in 2014 was just 21 months, despite ranking worse in other financial categories. This shows a sign of growth in the region."
- San Diego, CA
- Chicago, IL
- Riverside-San Bernardino, CA
- Washington, D.C. metro
- Charlotte, NC
- Las Vegas, NV
- New York metro area
- Portland, OR
- Los Angeles, CA
- San Jose, CA
- Minneapolis, MN
- San Francisco, CA
- Denver, CO
- San Antonio, TX
- Tampa-St. Petersburg, FL
- Atlanta, GA
- Miami, FL
- Houston, TX
- Orlando, FL
- Dallas, TX
- Virginia Beach-Norfolk, VA
- Baltimore, MD
- Phoenix, AZ
- Seattle, WA
- Cleveland, OH
- Sacramento, CA
The Top 25 metro areas by Annual Revenue included Charlotte, the New York metro area, and Denver were at the top of the list.
"Last year Charlotte emerged as a Top 5 Small Business City in America for Women, and it continues to grow," 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 of Age in Months | Average Annual Revenue | Average Credit Score |
|---|---|---|---|---|
| Charlotte-Concord-Gastonia, NC-SC | 56 | 43 | $1,178,992.43 | 602 |
| New York-Newark-Jersey City, NY-NJ-PA | 59 | 77 | $644,929.65 | 607 |
| Denver-Aurora-Lakewood, CO | 53 | 58 | $585,940.56 | 609 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 57 | 54 | $572,566.26 | 613 |
| Riverside-San Bernardino-Ontario, CA | 54 | 26 | $546,695.65 | 604 |
| San Francisco-Oakland-Hayward, CA | 51 | 54 | $545,033.30 | 635 |
| Houston-The Woodlands-Sugar Land, TX | 53 | 49 | $469,586.64 | 587 |
| San Diego-Carlsbad, CA | 56 | 33 | $451,996.75 | 639 |
| Chicago-Naperville-Elgin, IL-IN-WI | 57 | 36 | $431,247.38 | 628 |
| Las Vegas-Henderson-Paradise, NV | 52 | 27 | $385,337.20 | 610 |
| Los Angeles-Long Beach-Anaheim, CA | 55 | 56 | $367,922.87 | 619 |
| Orlando-Kissimmee-Sanford, FL | 48 | 23 | $331,993.57 | 566 |
| Dallas-Fort Worth-Arlington, TX | 47 | 26 | $245,382.62 | 588 |
| Seattle-Tacoma-Bellevue, WA | 48 | 43 | $209,659.86 | 553 |
| Tampa-St. Petersburg-Clearwater, FL | 47 | 24 | $207,231.25 | 615 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 52 | 29 | $200,590.91 | 606 |
| Minneapolis-St. Paul-Bloomington, MN-WI | 51 | 26 | $194,937.50 | 611 |
| Phoenix-Mesa-Scottsdale, AZ | 52 | 44 | $182,256.41 | 577 |
| Portland-Vancouver-Hillsboro, OR-WA | 53 | 39 | $163,875.00 | 645 |
| Atlanta-Sandy Springs-Roswell, GA | 53 | 29 | $145,511.93 | 608 |
| San Jose-Sunnyvale-Santa Clara, CA | 53 | 33 | $134,333.39 | 634 |
| Sacramento-Roseville-Arden-Arcade, CA | 49 | 65 | $116,199.90 | 566 |
| Baltimore-Columbia-Towson, MD | 48 | 21 | $115,117.65 | 557 |
| Cleveland-Elyria, OH | 50 | 44 | $99,787.50 | 592 |
| Virginia Beach-Norfolk-Newport News, VA-NC | 52 | 30 | $76,954.03 | 584 |
| National Average | 50 | 38 | $292,396.77 | 597 |
When sorted by Age of Business (in months), Baltimore was the leader, followed by Orlando and Tampa-St. Petersburg with the second and third youngest businesses respectively. Additionally, Miami ranked No. 9 when sorted by youngest businesses, representing three of the top 10 fastest growing regions for startup businesses.
"Florida is no longer just a state for retirement," Arora said. "Low startup costs and the ease of incorporating businesses in Florida make it appealing for entrepreneurs to set up their business in the Sunshine State."
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 |
|---|---|---|---|---|
| Baltimore-Columbia-Towson, MD | 48 | 21 | $115,117.65 | 557 |
| Orlando-Kissimmee-Sanford, FL | 48 | 23 | $331,993.57 | 566 |
| Tampa-St. Petersburg-Clearwater, FL | 47 | 24 | $207,231.25 | 615 |
| Minneapolis-St. Paul-Bloomington, MN-WI | 51 | 26 | $194,937.50 | 611 |
| Dallas-Fort Worth-Arlington, TX | 47 | 26 | $245,382.62 | 588 |
| Riverside-San Bernardino-Ontario, CA | 54 | 26 | $546,695.65 | 604 |
| Las Vegas-Henderson-Paradise, NV | 52 | 27 | $385,337.20 | 610 |
| Atlanta-Sandy Springs-Roswell, GA | 53 | 29 | $145,511.93 | 608 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 52 | 29 | $200,590.91 | 606 |
| Virginia Beach-Norfolk-Newport News, VA-NC | 52 | 30 | $76,954.03 | 584 |
| San Jose-Sunnyvale-Santa Clara, CA | 53 | 33 | $134,333.39 | 634 |
| San Diego-Carlsbad, CA | 56 | 33 | $451,996.75 | 639 |
| Chicago-Naperville-Elgin, IL-IN-WI | 57 | 36 | $431,247.38 | 628 |
| Portland-Vancouver-Hillsboro, OR-WA | 53 | 39 | $163,875.00 | 645 |
| Charlotte-Concord-Gastonia, NC-SC | 56 | 43 | $1,178,992.43 | 602 |
| Seattle-Tacoma-Bellevue, WA | 48 | 43 | $209,659.86 | 553 |
| Cleveland-Elyria, OH | 50 | 44 | $99,787.50 | 592 |
| Phoenix-Mesa-Scottsdale, AZ | 52 | 44 | $182,256.41 | 577 |
| Houston-The Woodlands-Sugar Land, TX | 53 | 49 | $469,586.64 | 587 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 57 | 54 | $572,566.26 | 613 |
| San Francisco-Oakland-Hayward, CA | 51 | 54 | $545,033.30 | 635 |
| Los Angeles-Long Beach-Anaheim, CA | 55 | 56 | $367,922.87 | 619 |
| Denver-Aurora-Lakewood, CO | 53 | 58 | $585,940.56 | 609 |
| Sacramento-Roseville-Arden-Arcade, CA | 49 | 65 | $116,199.90 | 566 |
| New York-Newark-Jersey City, NY-NJ-PA | 59 | 77 | $644,929.65 | 607 |
| National Average | 50 | 38 | $292,396.77 | 597 |
When sorted by Credit Score, Portland was the leader, followed by San Diego and San Francisco-Oakland.
Top 25 Metro areas with the highest applications in 2014
| Top 25 Metro areas with the highest applications in 2014 | Average Annual Revenue | Average Credit Score | Average of Age in Months | Average BizAnalyzer Score |
|---|---|---|---|---|
| Portland-Vancouver-Hillsboro, OR-WA | 53 | 39 | $163,875.00 | 645 |
| San Diego-Carlsbad, CA | 56 | 33 | $451,996.75 | 639 |
| San Francisco-Oakland-Hayward, CA | 51 | 54 | $545,033.30 | 635 |
| San Jose-Sunnyvale-Santa Clara, CA | 53 | 33 | $134,333.39 | 634 |
| Chicago-Naperville-Elgin, IL-IN-WI | 57 | 36 | $431,247.38 | 628 |
| Los Angeles-Long Beach-Anaheim, CA | 55 | 56 | $367,922.87 | 619 |
| Tampa-St. Petersburg-Clearwater, FL | 47 | 24 | $207,231.25 | 615 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 57 | 54 | $572,566.26 | 613 |
| Minneapolis-St. Paul-Bloomington, MN-WI | 51 | 26 | $194,937.50 | 611 |
| Las Vegas-Henderson-Paradise, NV | 52 | 27 | $385,337.20 | 610 |
| Denver-Aurora-Lakewood, CO | 53 | 58 | $585,940.56 | 609 |
| Atlanta-Sandy Springs-Roswell, GA | 53 | 29 | $145,511.93 | 608 |
| New York-Newark-Jersey City, NY-NJ-PA | 59 | 77 | $644,929.65 | 607 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 52 | 29 | $200,590.91 | 606 |
| Riverside-San Bernardino-Ontario, CA | 54 | 26 | $546,695.65 | 604 |
| Charlotte-Concord-Gastonia, NC-SC | 56 | 43 | $1,178,992.43 | 602 |
| Cleveland-Elyria, OH | 50 | 44 | $99,787.50 | 592 |
| Dallas-Fort Worth-Arlington, TX | 47 | 26 | $245,382.62 | 588 |
| Houston-The Woodlands-Sugar Land, TX | 53 | 49 | $469,586.64 | 587 |
| Virginia Beach-Norfolk-Newport News, VA-NC | 52 | 30 | $76,954.03 | 584 |
| Phoenix-Mesa-Scottsdale, AZ | 52 | 44 | $182,256.41 | 577 |
| Sacramento-Roseville-Arden-Arcade, CA | 49 | 65 | $116,199.90 | 566 |
| Orlando-Kissimmee-Sanford, FL | 48 | 23 | $331,993.57 | 566 |
| Baltimore-Columbia-Towson, MD | 48 | 21 | $115,117.65 | 557 |
| Seattle-Tacoma-Bellevue, WA | 48 | 43 | $209,659.86 | 553 |
| National Average | 50 | 38 | $292,396.77 | 597 |
"Four of the top six regions with the highest credit scores were represented by regions in California," explained Arora. "Silicon Valley has established a reputation for technological innovations and has been a very profitable sector over the last decade. This has translated to higher credit scores in the state."
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.