Best cities for small business were publishing in Biz2Credit in their Top 25 List. Biz2Credit got its information based on average annual revenues, credit scores, age of business, and Biz2Credit’s proprietary Biz Analyzer score. Moreover, these are factors in the local business climate, which include the rents, cost of labor, and tax rates. In fact, Biz2Credit has assessed the financials of 32,000 companies applying for small business loans. They included companies that put in for PPP loans during 2020.
Best Cities for Small Business: San Jose Tops the List
Edging out San Francisco was San Jose. That city was being pushed off their top spot which they got in the 2019 ranking. It includes other major cities in California as well as other capitals in the United States. In these top metropolitan and capital areas, the leading industries were considering for professional, scientific, and technical services, retail trade, and other services (except public administration). However, the cities at the center of the metropolitan areas are getting most of the acclaim. The Biz2Credit’s study measures metropolitan areas based on the Census Bureau tracts. The tracts capture a much more broad range of businesses in an area than just the ones in downtown urban areas.
In general, the average annual revenues for small businesses in 2020 dropped to $689K compared to $771K in 2019. This is a decrease of 10.6%. Moreover, it shows the close impact of the economic fallout that the Corona Virus had on small businesses. In fact, many of them were forcing to close due to the COVID-19 mitigation efforts.
The average credit scores for business owners have increased by 3.4% from 597 in 2019 to 617 in 2020. Moreover, the credit scores have also gone up across the spectrum for consumers because of the much bigger savings rate due to COVID-19 pandemic closures. Based on Biz2Credit’s findings, the same applies to business owners who have been able to save on rent. Plus other outstanding liabilities during government-mandated closure periods.