About the Biz2Credit Top Small Business Industries Study
Biz2Credit, a leading online funding provider to small businesses, analyzed the financial performance of over 52,000 applications submitted through the company's online funding platform from January 2022 to December 2022.
This year's report also introduces a brand-new section, examining subsequent data from January 2023 to June 2023 to showcase the emerging trends. The intent of this additional research is to provide a more current analysis of the directions taking shape.
All companies included in the Biz2Credit study have less than 250 employees and less than $5 million in annual revenues. The report covers small businesses across the country, from start-ups to established companies. In addition, this year's report analyzed lending data based on the Small Business Administration's database. The objective of the study is to identify the top industries for small businesses during the preceding year and to measure the performance of businesses based on their industry affiliation.
The wholesale trade had a very good year in 2022 as
pandemic-related supply chain issues dissipated. The industry posted the highest average revenue and the highest average funded amount. 
INSIGHT FROM BIZ2CREDIT CEO, ROHIT ARORA
Executive Summary
According to the Biz2Credit 2023 Top Small Business Industries Report, the industry that led in key performance categories in 2022 was Wholesale Trade. Wholesale Trade companies led the way in highest average revenue and highest average funded amount. In other sectors, Information Technology (IT) led in the highest credit score category, Manufacturing in the most established businesses, and Health Care & Social Assistance in the highest funding approval rate.
From analyzing the first half of 2023, the trends that further emerged are that Manufacturing and IT continue to lead in key categories. Manufacturing was the most established industry in addition to having the highest average revenue, while Information Technology had the highest average credit score and the highest average funding.
Key Findings: Summary
Health Care & Social Assistance and Accommodation & Food Services both had the highest approval rate at 37%.
Retail Trade received the highest volume of funding, contributing 24.8% of the overall funding.
Wholesale Trade received the highest average funding of $108,352.
Wholesale Trade earned the highest average revenue of $900,076.
Manufacturing had the most established companies with an average age of 7.4 years.
Transportation and Warehousing had the highest rate of startups with an average age of 3.1 years.
Information Technology had the highest average credit score at 669.
Small businesses in my Upstate New York district are bearing the brunt of record-high inflation, and they desperately need support - especially access to capital, Access to financing is critical, especially in these tough economic times, and we continue to look for solutions to help small business owners who may still face significant financial hurdles, I am focused on empowering entrepreneurs and supporting common sense policy that reduces the burden government places on small businesses.
INSIGHT FROM U.S. REPRESENTATIVE MARC MOLINARO
TOP INDUSTRIES BASED ON APPROVAL RATES
Health Care & Social Assistance and Accommodation & Food Services had the highest approval rate* for all financing applications at 37%, followed by Manufacturing (32%), Wholesale Trade (31%), and IT (30%).
Health Care & Social Assistance and Accommodation & Food Services
Highest
Approval Rate
TOP INDUSTRIES BASED ON VOLUME OF FUNDING
The industry with the highest volume of funding* was Retail Trade at 24.8%, followed by Accommodation and Food Services (15.7%), Construction (12.0%), Health Care and Social Assistance (10.6%), and Other Services (7.3%).
*Volume of Funding was determined by dividing the total industry amount of funding by the total funded amount in 2022.
TOP INDUSTRIES BASED ON AVERAGE FUNDING
The industry that received the highest average funded amount* was Wholesale Trade at $108,352, followed by Information Technology, Retail Trade, Manufacturing, Accommodation and Food Services, and Administrative and Support and Waste Management and Remediation Services.
| Industry | Average Funded Amount |
|---|---|
| Wholesale Trade | $108,352 |
| Information Technology | $99,586 |
| Retail Trade | $83,934 |
| Manufacturing | $68,803 |
| Accommodation and Food Services | $64,839 |
| Administrative and Support and Waste Management and Remediation Services | $64,614 |
*Average Funding was determined by dividing the total industry amount of funding by the number of businesses in the industry in 2022.
TOP INDUSTRIES BY AVERAGE REVENUE
The industry with the highest average revenue* was Wholesale Trade at $900,076, followed by Manufacturing, Information Technology, Construction, Accommodation & Food Services, and Health Care & Social Assistance.
*The average revenue was determined by dividing the total industry revenue by the total number of businesses in the industry.
TOP INDUSTRIES BASED ON AGE OF BUSINESS
Manufacturing was the most established industry with the highest average age of 7.4 years.
Transportation and Warehousing was the industry with the highest rate of startups with the lowest average age of 3.1 years.
Manufacturing
Most
established
Transportation and Warehousing
Highest rate
of startup
TOP INDUSTRIES BY CREDIT SCORE
The industry with the highest average credit score* was Information Technology at 669, followed by Manufacturing, Real Estate and Rental and Leasing, Wholesale Trade, Professional, Scientific, and Technical Services, and Finance and Insurance.
*The average credit score was determined by dividing the total sum of the industry credit score by the number of submitted applications in the industry.
YOY TRENDS AMONG TOP INDUSTRIES FOR APPROVAL RATE
Majority of highlighted industries saw their approval rates rise slightly year over year, except for Information Technology which dipped by 6%, and Retail Trade which remained stagnant. Other Services (except Public Administration) saw the highest approval rate increase with a rise of 4 percentage points.
YOY TRENDS AMONG TOP INDUSTRIES FOR AVERAGE FUNDED AMOUNT
Majority of highlighted industries saw an increase of average funded amount year over year, with Information Technology having the most significant growth of 37.3%.
Health Care & Social Assistance and Other Services (except Public Administration) saw slight decreases of 1% and 9% respectively.
YOY TRENDS AMONG TOP INDUSTRIES FOR AVERAGE REVENUE
Average revenue increased across all highlighted industries year over year. Accommodation and Food Services (51%) and Other Services (61%) experienced the greatest increase in average revenue.
Information Technology experienced thelowest, yet still significant, growth of (21%).
YOY TRENDS AMONG TOP INDUSTRIES FOR AVERAGE CREDIT SCORE
Credit scores increased across all highlighted industries year over year, with Retail Trade seeing the greatest increase of 15 points.
Information Technology retained its lead as the industry with the highest credit score with a score of 669.
EMERGING TRENDS FROM JANUARY-JUNE 2023
By looking at more current data from January to June of 2023, we analyzed trends of how industries continue to perform.
Health Care and Social Assistance has the highest approval rate for all financing applications at 48%.
Retail Trade had the highest volume of funding, contributing 21.4% of the overall funding.
Information Technology had the highest average funding of $110,044.
Manufacturing had the highest average revenue of $1,128,641.
Manufacturing had the most established companies with an average age of 8.0 years.
Transportation and Warehousing had the highest rate of startups with an average age of 3.5 years.
Information Technology had the highest average credit score at 670.
COMPARATIVE FINDINGS OF APPROVAL RATE
Health Care & Social Assistance and Accommodation & Food Services both received substantial increases of approval rates, reaching 48% and 43% respectively in H1 2023, versus 37% in 2022. Administrative & Support and Waste Management emerged as a top industry with an approval rate of 41%.
COMPARATIVE FINDINGS OF VOLUME OF FUNDING
Retail Trade and Accommodation and Food services retained its leads on volume of funding. Health Care and Social Assistance emerged as a top industry on funding volume at 13.7% in first half of 2023.
COMPARATIVE FINDINGS OF AVERAGE FUNDING
Information Technology rose to the lead for average funding in 2023 H1 with an amount $110,044 in the first half of 2023. Transportation & Warehousing and Manufacturing emerged as a top 3 industry for average funding.
From 2022 to 2023 H1, average funding amounts have increased across the top 3 industries
COMPARATIVE FINDINGS OF AVERAGE REVENUE
Manufacturing, Wholesale Trade, and Information Technology remain as the top industries for average revenue. Manufacturing overtook the leading position in the average revenue category for the first half of 2023.
About Biz2Credit
Founded in 2007, Biz2Credit has arranged more than $7 billion in small business financing. Through its state of the art online platform, Biz2Credit directly offer business funding products. Biz2Credit believes small business funding should be easy to understand, easy to access, easy to use and always available when needed most. That is why Biz2Credit’s goal has always been to create the best and fastest small business funding platform. To learn more and apply for business financing, visit
www.biz2credit.com or Twitter @Biz2Credit, Facebook, and LinkedIn
