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Analysis Identifies Markets with the Highest Annual Revenue, Number of Employees, Ages of Businesses and Credit Scores Among Small Business Owners
NEW YORK, NY, April 29, 2013 - Biz2Credit.com has identified the Fastest Growing Small Business Cities in America, based on the following criteria:
- Average Annual Revenue: Riverside-San Bernardino, CA ($508,538)
- Average of Number of Employees: Houston (7.1)
- Youngest Average of Age Business (in Months): Houston (34.0)
- Highest Average Credit Score: San Francisco-Oakland Bay Area (643)
"Houston has had sustained growth, thanks to an influx of immigrants who have started their own businesses. The city's small businesses have created the highest average number of jobs (7.1) and are the youngest in age (34 months), meaning that these are new businesses that have started up only in the past three years," said Biz2Credit CEO, Rohit Arora, one of the nation's leading experts in small business finance, who oversaw the research. "If governments want to promote small businesses, they cannot handcuff entrepreneurs with fees and costs."
For this analysis, Biz2Credit defined "small businesses" as companies having fewer than 250 employees or less than $10 million in annual revenues.
"When we embarked upon this study, we expected cities such as New York City, Boston, and Philadelphia, which both have well deserved reputations for business innovation, to be atop the list," Arora added. "However, the costs of doing business are much greater in big cities along the east coast. In other sections of the country, the cost of living is much cheaper. Technology levels the playing field."
Arora points out that New York's state and local tax burden, government fees, cost of living (property taxes have risen about 30% in past few years), the prevalence of unions, and high insurance costs make it unattractive for knowledge-based businesses, which don't have to have a presence in the Big Apple to be successful
"While sales in New York are higher than in other places, the operating costs are also higher. Thus, revenues up, but profits are down, " Arora said. "These realities do not bode well for small business growth."
Drivers of small business growth include the arrival of large numbers of Latinos and South Asian immigrants, who are starting companies in metropolitan areas in all sections of the country, including cities in southern California, Texas, and Florida.
Top 25 metro areas with highest small business loan application growth 2011-12 (sorted by Annual Revenue)
| Top 25 metro areas with highest small business loan application growth 2011-12 (sorted by Annual Revenue) | Average Annual Revenue | Average of Number of Employees | Average of Age in Months | Average Credit Score |
|---|---|---|---|---|
| Riverside-San Bernardino, CA | $508,538 | 4.5 | 50.6 | 618 |
| New York City metro | $470,146 | 5.0 | 51.5 | 641 |
| Los Angeles | $465,857 | 5.9 | 59.8 | 633 |
| Boston | $442,552 | 3.9 | 66.0 | 639 |
| Houston | $417,931 | 7.1 | 34.0 | 639 |
| Washington | $372,698 | 5.9 | 49.0 | 623 |
| Jacksonville, FL | $365,816 | 4.4 | 48.8 | 604 |
| Detroit | $359,649 | 4.1 | 52.1 | 611 |
| Cincinnati | $357,371 | 5.1 | 61.5 | 618 |
| Cleveland | $344,711 | 3.7 | 48.0 | 613 |
| Miami-Fort Lauderdale | $327,945 | 6.0 | 44.7 | 616 |
| Chicago | $323,596 | 5.3 | 48.4 | 626 |
| Philadelphia | $313,805 | 5.4 | 49.6 | 625 |
| Orlando | $297,922 | 4.5 | 37.6 | 615 |
| San Francisco-Oakland | $297,751 | 4.0 | 44.4 | 643 |
| Baltimore | $288,770 | 4.7 | 49.6 | 623 |
| Dallas-Fort Worth | $288,641 | 4.4 | 37.5 | 620 |
| Atlanta | $258,990 | 5.1 | 38.9 | 607 |
| Seattle | $258,354 | 4.6 | 37.5 | 626 |
| Phoenix | $242,496 | 5.6 | 45.8 | 619 |
| Denver | $241,393 | 3.7 | 37.4 | 621 |
| Tampa-St. Pete | $225,506 | 4.5 | 36.4 | 612 |
| St. Louis | $223,331 | 4.3 | 42.3 | 618 |
| Charlotte | $214,088 | 5.5 | 39.6 | 614 |
| San Diego | $203,567 | 3.6 | 46.0 | 625 |
| National Average | $343,815 | 4.7 | 46.0 | 616 |
Small businesses in Houston had the highest average number of employees. This measurement is significant, as smaller companies have created the lion's share of new jobs during the past decade.
"Houston was well ahead of the other cities in the average number of employees at small companies," Arora explained.
Top 25 metro areas with highest small business loan application growth 2011-12 (sorted by Annual Revenue)
| Top 25 metro areas with highest small business loan application growth 2011-12 (sorted by # of Employees) | Average Annual Revenue | Average of Number of Employees | Average of Age in Months | Average Credit Score |
|---|---|---|---|---|
| Houston | $417,931 | 7.1 | 34.0 | 609 |
| Miami-Fort Lauderdale | $327,945 | 6.0 | 44.7 | 616 |
| Los Angeles | $465,857 | 5.9 | 59.8 | 633 |
| Washington | $372,698 | 5.9 | 49.0 | 623 |
| Phoenix | $242,496 | 5.6 | 45.8 | 619 |
| Charlotte | $214,088 | 5.5 | 39.6 | 614 |
| Philadelphia | $313,805 | 5.4 | 49.6 | 625 |
| Chicago | $323,596 | 5.3 | 48.4 | 626 |
| Atlanta | $258,990 | 5.1 | 38.9 | 607 |
| Cincinnati | $357,371 | 5.1 | 61.5 | 618 |
| New York City metro | $470,146 | 5.0 | 51.5 | 641 |
| Baltimore | $288,770 | 4.7 | 49.6 | 623 |
| Seattle | $258,354 | 4.6 | 37.5 | 626 |
| Riverside-San Bernardino, CA | $508,538 | 4.5 | 50.6 | 618 |
| Tampa-St. Pete | $225,506 | 4.5 | 36.4 | 612 |
| Orlando | $297,922 | 4.5 | 37.6 | 615 |
| Jacksonville, FL | $365,816 | 4.4 | 48.8 | 604 |
| Dallas-Fort Worth | $288,641 | 4.4 | 37.5 | 620 |
| St. Louis | $223,331 | 4.3 | 42.3 | 618 |
| Detroit | $359,649 | 4.1 | 52.1 | 611 |
| San Francisco-Oakland | $297,751 | 4.0 | 44.4 | 643 |
| Boston | $442,552 | 3.9 | 66.0 | 639 |
| Denver | $241,393 | 3.7 | 37.4 | 621 |
| Cleveland | $344,711 | 3.7 | 48.0 | 613 |
| San Diego | $203,567 | 3.6 | 46.0 | 625 |
| National Average | $343,815 | 4.7 | 46.0 | 616 |
When sorted by Age of Business, Houston was again the leader.
"The small number of months in business indicates more startups in the area," Arora explained. "Cities such as New York, Detroit, Los Angeles, Cincinnati, and Boston tend to have older, more established companies, which raise the average."
Top 25 metro areas with highest small business loan application growth 2011-12 (sorted by Annual Revenue)
| Top 25 metro areas with highest small business loan application growth 2011-12 (sorted by Age of Business) | Average Annual Revenue | Average of Number of Employees | Average of Age in Months | Average Credit Score |
|---|---|---|---|---|
| Houston | $417,931 | 7.1 | 34.0 | 609 |
| Tampa-St. Pete | $225,506 | 4.5 | 36.4 | 612 |
| Denver | $241,393 | 3.7 | 37.4 | 621 |
| Seattle | $258,354 | 4.6 | 37.5 | 626 |
| Dallas-Fort Worth | $288,641 | 4.4 | 37.5 | 620 |
| Orlando | $297,922 | 4.5 | 37.6 | 615 |
| Atlanta | $258,990 | 5.1 | 38.9 | 607 |
| Charlotte | $214,088 | 5.5 | 39.6 | 614 |
| St. Louis | $223,331 | 4.3 | 42.3 | 618 |
| San Francisco-Oakland | $297,751 | 4.0 | 44.4 | 643 |
| Miami-Fort Lauderdale | $327,945 | 6.0 | 44.7 | 616 |
| Phoenix | $242,496 | 5.6 | 45.8 | 619 |
| San Diego | $203,567 | 3.6 | 46.0 | 625 |
| Cleveland | $344,711 | 3.7 | 48.0 | 613 |
| Chicago | $323,596 | 5.3 | 48.4 | 626 |
| Jacksonville, FL | $365,816 | 4.4 | 48.8 | 604 |
| Washington | $372,698 | 5.9 | 49.0 | 623 |
| Philadelphia | $313,805 | 5.4 | 49.6 | 625 |
| Baltimore | $288,770 | 4.7 | 49.6 | 623 |
| Riverside-San Bernardino, CA | $508,538 | 4.5 | 50.6 | 618 |
| New York City metro | $470,146 | 5.0 | 51.5 | 641 |
| Detroit | $359,649 | 4.1 | 52.1 | 611 |
| Los Angeles | $465,857 | 5.9 | 59.8 | 633 |
| Cincinnati | $357,371 | 5.1 | 61.5 | 618 |
| Boston | $442,552 | 3.9 | 66.0 | 639 |
| National Average | $343,815 | 4.7 | 46.0 | 616 |
When sorted by Average Credit Score, the San Francisco-Oakland Bay Area again the leader.
"Small businesses in cities such as San Francisco, New York, Boston, and Los Angeles tended to have higher credit scores. Many of these cities are tech hubs with small, nimble and profitable small businesses. They are also areas with a long history of innovation and success, and thus achieve higher credit scores," Arora said.
Top 25 metro areas with highest small business loan application growth 2011-12 (sorted by Annual Revenue)
| Top 25 metro areas with highest small business loan application growth 2011-2012 (sorted by Credit Score) | Average Annual Revenue | Average of Number of Employees | Average of Age in Months | Average Credit Score |
|---|---|---|---|---|
| San Francisco-Oakland | $297,751 | 4.0 | 44.4 | 643 |
| New York City metro | $470,146 | 5.0 | 51.5 | 641 |
| Boston | $442,552 | 3.9 | 66.0 | 639 |
| Los Angeles | $465,857 | 5.9 | 59.8 | 633 |
| Seattle | $258,354 | 4.6 | 37.5 | 626 |
| Chicago | $323,596 | 5.3 | 48.4 | 626 |
| San Diego | $203,567 | 3.6 | 46.0 | 625 |
| Philadelphia | $313,805 | 5.4 | 49.6 | 625 |
| Baltimore | $288,770 | 4.7 | 49.6 | 623 |
| Washington | $372,698 | 5.9 | 49.0 | 623 |
| Denver | $241,393 | 3.7 | 37.4 | 621 |
| Dallas-Fort Worth | $288,641 | 4.4 | 37.5 | 620 |
| Phoenix | $242,496 | 5.6 | 45.8 | 619 |
| Cincinnati | $357,371 | 5.1 | 61.5 | 618 |
| Riverside-San Bernardino, CA | $508,538 | 4.5 | 50.6 | 618 |
| St. Louis | $223,331 | 4.3 | 42.3 | 618 |
| Miami-Fort Lauderdale | $327,945 | 6.0 | 44.7 | 616 |
| Orlando | $297,922 | 4.5 | 37.6 | 615 |
| Charlotte | $214,088 | 5.5 | 39.6 | 614 |
| Cleveland | $344,711 | 3.7 | 48.0 | 613 |
| Tampa-St. Pete | $225,506 | 4.5 | 36.4 | 612 |
| Detroit | $359,649 | 4.1 | 52.1 | 611 |
| Houston | $417,931 | 7.1 | 34.0 | 609 |
| Atlanta | $258,990 | 5.1 | 38.9 | 607 |
| Jacksonville, FL | $365,816 | 4.4 | 48.8 | 604 |
| National Average | $343,815 | 4.7 | 46.0 | 616 |
About the Biz2Credit Fastest Growing Small Business Cities Study
Biz2Credit analyzed 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.
About Biz2Credit
Founded in 2007, Biz2Credit is a leading credit marketplace connecting small- and medium-sized businesses with lenders, service providers, and complementary business tools. The company matches borrowers to financial institutions based on each business's unique profile -- completed in less than four minutes -- in a safe, efficient, price-transparent environment. Biz2Credit's network consists of 1.6 million users, 1,100+ lenders, credit rating agencies such as D&B and Equifax, and small business service providers including CPAs and lawyers.
Having arranged $800 million in funding throughout the U.S., Biz2Credit is widely recognized as a leading online credit resource for small business loans, lines of credit, working capital and other funding options., Follow on Twitter @Biz2Credit, and "Like Us" on Facebook at http://www.facebook.com/businessloan