Six Cities in California Rank Among the Top 10
NEW YORK, NY, May 1, 2018 - Biz2Credit has identified New York as the "Best Small Business City in America," based on a weighted average that includes annual revenue, credit score, age of business (in months), and the company's proprietary BizAnalyzer score that factors in cash flow, debt-to-income ratio, taxes and other data. In its computation, Biz2Credit examined the financials of nearly 30,000 companies that applied for small business financing in 2017.
"New York is where small businesses are making the most money, and New York companies far outpaced businesses based in other areas in annual revenues," said Biz2Credit CEO Rohit Arora, one of the nation's leading experts in small business finance, who oversaw the research. "The city has a diverse economy, and the sectors it is strong in - finance, IT, travel and tourism, real estate and construction - are thriving."
Arora believes the growth of New York's tech industry is buoying all the other industries, including fashion, food & beverage, and hospitality. Further, as one of the world's great metropolises, The Big Apple has long been a magnet for the best and brightest from graduates from American and international universities.
"Immigrants from all over the globe continue to add vibrancy to New York's economy," said Arora, who is a native of India.
New York businesses led the two key categories of financial metrics in the study to be named America's Top Small Business City in 2018: annual revenue, and Biz2Credit's proprietary BizAnalyzer score, which takes into account local economic factors, including the cost of doing business and tax rate.
Six metro areas in California were among the Top 10 Best Cities for Small Business Growth: San Jose (No. 2), San Francisco (No. 4), Los Angeles (No. 5), Riverside-San Bernardino, (No. 6), San Diego, CA (No. 9) and Sacramento (No. 10).
The Miami-Fort Lauderdale metro area ranked No. 3, Washington ranked No. 7, and Austin, TX, ranked No. 8 in Biz2Credit's annual study in 2018.
"Miami is a gateway to Latin America," suggests Arora. "Latinos have comprised more than half of the total U.S. population growth over the last 15 years, and immigrants continue start businesses in southern Florida, where the real estate and construction industries are booming. Additionally, the cost of living in Miami is a bit less expensive than in New York or Northern California."
"Technology companies in California are thriving, and the high tide floats all the boats,"explained Arora. "Industries related to the IT sector throughout California are doing well. The excellent higher education system in the state means skilled workers are available."
For this analysis, Biz2Credit defined "small businesses" as companies having fewer than 250 employees or less than $10 million in annual revenues. The Top 25 Cities for Small Business in 2018 (with 2017 ranking in parenthesis) are:
1. New York, NY (No. 1)
2. San Jose, CA (No. 4)
3. Miami-Fort Lauderdale, FL (No. 2)
4. San Francisco, CA (No. 8)
5. Los Angeles, CA (No. 5)
6. Riverside-San Bernardino, CA (No. 10)
7. Washington, DC (No. 16)
8. Austin, TX (No. 3)
9. San Diego, CA (No. 14)
10. Sacramento, CA (No. 18)
11. Phoenix, AZ (No. 7)
12. Chicago, IL (No. 19)
13. Dallas-Fort Worth, TX (No. 13)
14. Seattle, WA (No. 6)
15. Atlanta, GA (No. 20)
16. Baltimore, MD (No. 12)
17. Denver, CO (No. 17)
18. Las Vegas, NV (No. 23)
19. San Antonio, TX (No. 21)
20. Detroit, MI (No. 15)
21. Houston, TX (No. 11)
22. Philadelphia, PA (No. 24)
23. Portland, OR (No. 11)
24. Charlotte, NC (No. 22)
25. Kansas City, MO
Washington, DC, made the biggest jump - from No. 16 to No. 7 - on the list thanks to firms in the cybersecurity industry, which is fueled in large part by government spending, according to Arora. Sacramento climbed from No. 18 in 2017 to No. 8 this year. No. 25 Kansas City is a newcomer to the rankings this year.
The Top 10 metro areas by Annual Revenue
|Top 10 Metro areas||Annual Revenue|
|New York, NY||($1,016,446)|
|Miami-Fort Lauderdale, FL||($854,540)|
|San Jose, CA||($748,529)|
|Los Angeles, CA||($674,543)|
|San Francisco, CA||($657,216)|
"New York is the place where you can make the most money," says Arora, whose firm is based in Manhattan.
When sorted by Age of Business (in months), Las Vegas tied with Portland for the youngest average age of business, an indication of startup growth.
|Top 10 Metro areas||Age of Business|
|Portland, OR||44 months|
|Las Vegas, NV||44 months|
|Atlanta, GA||47 months|
|Denver, CO||48 months|
|Philadelphia, PA||51 months|
|Austin, TX||51 months|
|Charlotte, NC||52 months|
|San Antonio, TX||52 months|
|Houston, TX||55 months|
|Dallas, TX||55 months|
"The tourism industry is booming in Las Vegas. It has a growing IT sector and lots of construction going on. Additionally, its warm weather, comparatively low cost of living, and no state income tax are just three reasons why Vegas is an attractive place to start a new company," says Arora. "Immigrants from Mexico, Latin America and Asia have migrated to Las Vegas and are starting businesses there."
"Portland is a growing IT hub, and it is also a place where the cost of living is low, compared to other cities on the West Coast and the East Coast," Arora added.
When sorted by Credit Score, San Jose was the leader at 654.
"Silicon Valley is still one of the hottest economic areas in the country. It is no surprise that their credit scores rated so high," Arora said. "Five of the top 10 cities for credit scores are in California."
|Top 10 Metro areas||Credit Score|
|San Jose, CA||(Score: 654)|
|New York, NY||(Score: 639)|
|Riverside, CA||(Score: 638)|
|San Francisco, CA||(Score: 633)|
|Miami-Ft. Lauderdale||(Score: 631)|
|Los Angeles, CA||(Score: 631)|
|Washington, DC||(Score: 627)|
|Las Vegas, NV||(Score: 623)|
|Sacramento, CA||(Score: 623)|
|Atlanta, GA||(Score: 616)|