Biz2Credit 2024 Small Business Earnings Report
About the Biz2Credit Small Business Earnings Report
Biz2Credit introduces its new Small Business Earnings Index that examines the financial situations of businesses that used Biz2Credit to apply for business credit.
The study looks at the performance of small to mid-sized firms -- from early stage to established companies -- in the U.S. that applied for credit in the past year. It’s intended to provide a snapshot of the financial health of businesses nationwide across a wide range of industries.
Key Findings for 2024
The average earnings for the first 11 months of 2024: $86,809 This is the worst yearly average earnings since 2020.
Inflation remains sticky at ~2.6%. This remains elevated above the Fed's target rate of 2.0%, 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 compared to 2023, average revenues are up $232,410 ($747,618 - $515,208), average expenses are up $296,517 ($660,809 - $364,292). However, profits are lower by $64,108 ($86,809 - $150,917).
“Our Small Business Earnings Index 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.”
Methodology
Biz2Credit examined over 100,000 financing applications received in 2024. Looking at a number of variables in their Earnings Index report, including annual revenue, operating expenses, age of business, credit score, approval rate, and funding rate. Data was extracted from non-PPP loans submitted from January 2022 to December 2024.
Term Loans are made by Itria Ventures LLC or Cross River Bank, Member FDIC. This is not a deposit product. California residents: Itria Ventures LLC is licensed by the Department of Financial Protection and Innovation. Loans are made or arranged pursuant to California Financing Law License # 60DBO-35839