Some of today’s thriving US cities are getting to the top through not only supporting large global corporations but also through their growing network of small businesses. A recent ranking by online resource Biz2Credit highlights this fact as they comprised their annual report for uncovering the best cities in the nation for small businesses in 2019. On the list were those cities familiar to widespread economic success including California’s San Diego and Los Angeles as well as NYC and Boston.
In order to calculate the ranking, the online analyst used its tool BizAnalyzer to uncover the factors behind sustaining a successful business climate that supports and fosters growth. Touching on a collective view of the business environment in each city location, a key category analyzed focused on the cost of doing business. Things like taxes, property costs, permits, etc. all impact the cost of starting and running a business and helped to organize how each location ranked among affordability when compared to other cities in the running.
This baseline information was then analyzed against the overall annual revenues for each location’s small business network in which the report used a combined pool of 30K organizations for running the comparison. These companies were all those that fit into what the SBA defines as small businesses; which in the report’s case narrowed it down to those organizations with 250 or less employees making no more than $10 million in annual revenue that have been operating for at least a year.
Weighing the averages across these companies in both affordability and revenue, the report also looked at the rate of which small business creation was growing in each metro area along with the local talent pool and its ability to sustain growth. With nearly 59 million people or 48% of the nation’s private workforce employed by small businesses – understanding the health of each area’s employee network is a critical factor keeping the United States’ metros growing and fueling small businesses.