2024 Annual Top 25 Cities for Small Business Study
May 09, 2024
About the Biz2Credit Top 25 Cities for Small Business Study
Biz2Credit’s Top 25 Cities for Small Business Study is an annual review of the financial performance of small businesses in the United States. The study reviews tens of thousands of credit inquiries and applications from small to mid-sized businesses across the country for the full prior year (2023). Results from the study are a trusted source of insight on the performance of small businesses over the past 12 months. The study is frequently cited in major publications covering finance and the American economy.
Clearly, San Jose and San Francisco, which rank No. 1 and No. 2 on our analysis, are still the hub of America’s tech industry. Non-tech firms are benefiting as a result of companies and individuals doing well, a high tide raises all the boats. 
Rohit Arora
Word from our CEO
2024 Top Cities For Small Business
California accounted for the greatest share of cities on our list, claiming seven spots total, including first and second
place. Colorado, Connecticut, and Pennsylvania followed, with two cities each.
1. San Jose,
CA
2. Francisco,
CA
3. Colorado
Springs, CO
4. Seattle,
WA
5. Greater
Bridgeport, CT
Executive Summary
Biz2Credit has identified San Jose as the “Best Small Business City in America,” based on Biz2Credit’s proprietary BizAnalyzer score. Small businesses here had high average annual revenues, strong credit scores**, and mature businesses.
This year’s rankings included eight cities that did not rank among the Top 25 Cities for Small Business in 2023. While last year’s winner, San Francisco, fell to 2nd place.
Leading industries among our top cities are: Accommodation and Food Services, Other Services (except Public Administration), and Construction.
Overall, small businesses’ average revenues* increased by 10.4% to $618,000, compared to $560,000 in 2023. Business owners’ average credit scores** increased by 11 points, from 641 to 652 in 2024.
The Biz2Credit BizAnalyzer Score factors in the local business climate, including rents, labor costs, and local tax rates. Biz2Credit examined the financials of over 60,000 applications for small business loans and financing submitted in 2023.
*Rankings are determined by businesses’ performance in 2023. Biz2Credit weighted the averages shown above by the percentage of cases submitted in 2022 by businesses in the same industry. **Average credit score is derived from the personal FICO credit score of business owners.
Key Findings For Top 25 Cities
San Jose is
2024’s #1 small business city,
jumping seven
spots from 8th
place in 2023.
Leading industries among the top cities are:
1) Accommodation
and Food Services,
2) Other Services
(except public
administration), and
3) Construction.
Average annual revenue for small
businesses
increased
to $618,000
from $560,000
the previous year.
Average credit scores* for
businesses in
metropolitan cities
increased by 11
points from 641 to
652 in 2024.
The average age of businesses in
cities increased by
12 months, to 69
months from 57
months the
previous year.
Biz2credit Has Identified San Jose, CA As The Best City
For Small Business In America
Average Annual Revenue: $1,008,279
Average Credit Score: 671
Age of Business: 78 MONTHS (6.5 years)
The data shown is based on the performance of small businesses from 1st Jan 2023 to 31st Dec 2023
*Average credit score is derived from the personal FICO credit score of business owners.
Top Cities And Their Industries
The top 5 cities for small business in 2024 were:
- San Jose, CA
- San Francisco, CA
- Colorado Springs, CO
- Seattle, WA
- Greater Bridgeport, CT
Within these top 5 cities, the top 3 industries were:
- Accommodation and Food Services
- Other Services (except Public Administration)
- Construction
Top 25 Small Business Cities of 2024 vs. 2023
in parentheses; loss in rank is noted in red, gain in rank is noted in green.
Top 5 Cities of 2024 vs. 2023
| City | 2024 Rank* |
|---|---|
| San Jose, CA | 1 |
| San Franciso, CA | 2 |
| Colorado Springs, CO | 3 |
| Seattle, WA | 4 |
| Greater Bridgeport, CT | 5 |
| City | 2023 Rank* |
|---|---|
| San Francisco, CA | 1 |
| Sacramento, CA | 2 |
| San Diego, CA | 3 |
| New York City, NY | 4 |
| Boston, MA | 5 |
Emerging Top Cities For Small Business
These eight cities earned their spot on our list after not ranking in 2023. It is the first time Colorado Springs, Greater
Bridgeport, Salt Lake City, Oxnard, and Hartford have been named to our list, while Port St. Lucie (2022), Phoenix (2021),
and Minneapolis (2021) have ranked previously.
| City | 2023 Rank | 2024 Rank | |
|---|---|---|---|
| Colorado Springs, CO | Not Ranked | 3 | |
| Greater Bridgeport, CT | Not Ranked | 5 | |
| Salt Lake City, UT | Not Ranked | 11 | |
| Oxnard, CA | Not Ranked | 13 | |
| Minneapolis, MN | Not Ranked | 19 | |
| Port St. Lucie, FL | Not Ranked | 20 | |
| Hartford, CT | Not Ranked | 23 | |
| Phoenix, AZ | Not Ranked | 25 |
Get To Know Our Emerging Cities
Home to the Olympic & Paralympic Training Center and a center of aerospace and cybersecurity innovation
Retail trade is leading growth in Greater Bridgeport, a city renowned for its 1,300 acres of public park space
An emerging tech hub, Salt Lake and surrounding area is sometimes referred to as the Silicon Slopes
Host of the California Strawberry Festival, Oxnard has rich agricultural roots and a booming construction industry
The Cream City is a manufacturing, food and beverage, and technology powerhouse
Construction is leading growth in this city, which is also the host of the New York Mets’ spring training camp
Home to several major industries and known as the Insurance Capital of the World
One of the fastest growing cities in America and a burgeoning tech hub
Cities That Lost Rank In 2024
These cities ranked among the best cities for small business in 2023, but did not in 2024.
Miami topped our list in 2019 and has fallen in rank since then. It’s been one of the hardest hit cities by inflation, with
prices up 4.9% over the past twelve months, according to the Consumer Price Index.
| City | 2023 Rank | 2024 Rank | |
|---|---|---|---|
| Milwaukee, WI | 15 | Not Ranked | |
| Kansas City, MO | 16 | Not Ranked | |
| San Antonio, TX | 17 | Not Ranked | |
| Austin, TX | 18 | Not Ranked | |
| Tampa, FL | 21 | Not Ranked | |
| Orlando, FL | 23 | Not Ranked | |
| Las Vegas, NV | 24 | Not Ranked | |
| Miami, FL | 25 | Not Ranked |
Key Performance Metrics
Our 2024 rankings were determined by the financial performance of businesses in 2023*. Below are the year-over-year
trends for small businesses:
Average credit score for businesses in metropolitan cities increased to 642 in 2022 from 633 in 2021.
Average age of business (months) in metropolitan cities increased to 58 months in 2022 from 54 months in 2021.
Weighted average revenue was $441K in 2022 compared to $376K in 2021 (+17.4%).
Average Credit Scores**
661
652
Average Age of Business
57 mo.
69 mo.
Weighted Average Revenue
$560K
$618K
*Some averages may differ from previously reported metrics due to updated methodologies for determining average annual revenue, age, and credit
scores for businesses. **Average credit score is derived from the personal FICO credit score of business owners.
Top 10 Cities Based On Annual Revenue
The top city based on
annual revenue was Salt Lake City, UT at $1,044,719.
Top 10 Cities Based On Credit Score*
Western tech hubs, Salt Lake City, San Jose,, and San Francisco, had the highest
credit scores*
Top 10 Cities That Have The Most Startups
Cities with the lowest average age of business indicate the highest concentration of startups. Chicago, IL and
Kansas City, MO tied for the cities with the most startups.
Chicago, IL
Kansas City, MO
Austin, TX
San Antonio, TX
Detroit, MI
Riverside, CA
Cleveland, OH
Philadelphia, PA
Greenville, SC
Minneapolis, MN
Hartford, CT
Los Angeles, CA
Oklahoma City, OK
Portland, OR
About Biz2Credit
Founded in 2007, Biz2Credit has arranged more than $8 billion in small business financing. The company is expanding its industry-
leading technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit
www.biz2credit.com or LinkedIn, Instagram, X @Biz2Credit
Term Loans are made by Itria Ventures LLC or Cross River Bank, Member FDIC.