Detroit is dubbed the “Motor City” for its famed history in the automobile industry. Well today, Detroit, which suffered through a harsh decline in its production of transportation vehicles over the years, has put its foot on the pedal when it comes to the successful emergence of the small business in the region.
In Biz2Credit.com’s annual list of Best Small Business Cities in America, Detroit and its local partner, Dearborn, finished a robust second. This Michigan area just trailed the technology-rich San Jose in California’s Silicon Valley.
“San Jose remains the center of innovation and new business job creation in the U.S.,” said Rohit Arora, the Biz2Credit CEO and one of the nation’s leading experts in small business finance.
Arora, who oversaw this research relating to the top small businesses in the country, was delighted to see Detroit making a place among the country’s leaders in small business production.
“Surprisingly, Detroit-Dearborn scored very well in large parts because of the auto industry’s rebound and the growing technology sector in the area.”
Yes, this area in Michigan has turned the corner due to the technology that the auto industry has prospered from, but the downtown section of Detroit must be awarded, too, for its contribution to the success of the small businesses.
The local — and small merchants — in the downtown section of the city are thriving due to the Detroit Small Business Passport. Shoppers can pick up a passport and receive discounts and participate in businesses.
“We want to put our small business community on a pedestal, building up the network of resources available along the way,” said Ryan Hooper, the director at Pure Detroit, a clothing and gift boutique in the city that launched this clever passport plan to lure shoppers to the downtown area.
Biz2Credit defined “small businesses” as companies with fewer than 250 employees or less than $10 million in annual revenues. Biz2Credit analyzed 12,000 businesses that have been in operation for more than one year.
Last year’s top city for small businesses, Houston, fell from No. 1. Biz2Credit cited the slippage due to the oil boom in Texas as the primary reason for Houston’s fall from the top. But the Texan city did remain on the list of top 25 cities by being at #15.
Here are the Top 10 small business cities for 2014:
1. San Jose
4. Los Angeles-Long Beach-Anaheim
5. San Francisco-Oakland
6. La Vegas
7. New York metro area
9. Washington, DC
10. Miami-Fort Lauderdale-West Palm Beach
For the complete Top 25 cities ranking, click here.