Top Cities For Small Businesses in America

A Biz2Credit Research Report On
2014s Best Small Business Cities in

America
May 14th 2014
Rohit Arora, CEO
Helping Small Businesses Grow
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Biz2Credit in a few words
Biz2Credit is an online marketplace that equips small and medium size
businesses with tools needed to analyze their financial health and equips
banks with the tools to more efficiently manage their small business lending
process. Proprietary technology streamlines the loan application process and
connects borrowers to lenders using a patented credit algorithm.
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Funded over $1 Billion to date
Over 1,200 lenders on our platform, including 50+ micro-lenders
Has direct reach to over 1.6 million small and medium sized business
owners
2012 - Entrepreneur.com Top Small
Business Finance Resource
2011 - Crains Top Entrepreneur
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Biz2Credit in a few words
Small Businesses:
The Backbone of The American Economy
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Small Businesses: Facts
Over half of Americas workers own or work for a Small Business
Small Businesses have generated over 64% of new jobs in the last 15
years
Small businesses create 2 out of every 3 jobs today
Add greatly to the economic growth of the country
From Farmers to Mechanics to Doctors Small Businesses are
everywhere!

Source: U.S. Department of Housing and Urban Development

Biz2Credit Study:
2014s Top Cities for Small Businesses in
America
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Small Businesses: Facts
For this study, Biz2Credit Analyzed over 12,000 Small Businesses across America to determine
the best cities for small businesses, women owned businesses and Minority owned
businesses. Factors studied to determine the rankings include:

250 Employees or Less
Less than $10 million in Annual Revenues
Annual Busines Revenues
Business Credit Scores
Debt-to-Income Ratio
Age of Business
Type of Business
Business Owners Personal Credit Scores

Results: 2014s Top Cities for Small Business
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After Analyzing over 100 cities, the results for the top cities for Small Businesses:

Rank Top 25 Metro areas with the highest applications in 2013
Average
Annual
Revenue
Average
Credit
Score
Average of
Age in
Months
Average
BizAnalyzer
Score
1 San Jose-Sunnyvale-Santa Clara, CA $ 499,811 685 67.4 57.7
2 Detroit-Warren-Dearborn, MI $ 730,013 637 39.4 55.5
3 Denver-Aurora-Lakewood, CO $ 482,434 649 46.0 55.1
4 Los Angeles-Long Beach-Anaheim, CA $ 752,154 641 58.6 53.9
5 San Francisco-Oakland-Hayward, CA $ 274,164 637 51.9 53.7
6 Las Vegas-Henderson-Paradise, NV $ 497,677 649 39.4 53.6
7 New York-Newark-Jersey City, NY-NJ-PA $ 574,801 637 47.3 52.6
8 Atlanta-Sandy Springs-Roswell, GA $ 384,282 623 45.4 52.5
9 Washington-Arlington-Alexandria, DC-VA-MD-WV $ 224,982 629 34.9 52.5
10 Miami-Fort Lauderdale-West Palm Beach, FL $ 375,856 625 46.9 52.2
San Jose remains the center of innovation and
new business job creation in the U.S.

Surprisingly, Detroit-Dearborn scored very well in large part
because of the auto industrys rebound
and the growing technology sector in the area.

While revenue figures are usually higher for New York-based companies, so are the
costs of operation. The minimum wage is higher, and now Mayor DeBlasio has
expanded paid sick leave.
This hinders small business owners,

Results: 2014s Top Cities for Small Business
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"San Jose remains the center of innovation and new business job
creation in the U.S., Surprisingly, Detroit-Dearborn scored very well
in large part because of the auto industrys rebound and the
growing technology sector in the area.
- Biz2Credit CEO Rohit Arora,

While revenue figures are usually higher for New York-based
companies, so are the costs of operation. The minimum wage is
higher, and now Mayor DeBlasio has expanded paid sick leave.
This hinders small business owners, When fixed and marginal
costs are high, it impacts cash flow significantly. There is also
some fallout still from Hurricane Sandy and its impact on small
businesses. This, too, hurt New Yorks ranking.
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Biz2Credit Study:
2014s Top Cities for Minority Owned
Small Businesses
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Results: 2014s Top Cities for Minority Owned SB
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Rank Top 25 Metro areas with the highest applications in 2013
Average
Annual
Revenue
Average
Credit
Score
Average of
Age in
Months
Average
BizAnalyzer
Score
1 San Jose-Sunnyvale-Santa Clara, CA $ 446,395 665 69.6 56.8
2 Denver-Aurora-Lakewood, CO $ 734,761 640 56.8 54.3
3 San Diego-Carlsbad, CA $ 971,025 647 62.3 53.9
4 Riverside-San Bernardino-Ontario, CA $ 1,380,613 608 41.8 53.8
6 Indianapolis-Carmel-Anderson, IN $ 610,646 620 50.7 52.6
8 New York-Newark-Jersey City, NY-NJ-PA $ 486,141 635 44.7 51.9
10 Miami-Fort Lauderdale-West Palm Beach, FL $ 417,819 620 43.7 51.6
"Centers of technological innovation are booming. Cities like Portland and
Jacksonville are taking advantage of their slower pace, lower costs and good
standard of living offered to residents

While New York City is an appealing location for entrepreneurs to start a business,
the reality is that high fixed and marginal costs negatively impact the bottom line of
small business owners

According to statistics from the U.S. Census Bureau, African Americans (just over
25%) Hispanics (28.6%) and Asians (12.7%) combine to comprise the majority of New
York Citys population.

"San Jose is a hub for small business, but people might not immediately expect it to
be a booming place for minority-owned companies"

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Results: 2014s Top Cities for Minority Owned SB
"San Jose is a hub for small business, but people might not
immediately expect it to be a booming place for minority-owned
companies," According to U.S. Census Bureau statistics, Hispanics
represent nearly a third of the population in San Jose, while Asians
(non-Hispanic) represent just over 30 percent of the population.
Surprisingly, Denver scored very well in the study, largely because
of the booming fresh produce and organic food industry, which is
popular amongst minorities.
While New York City is an appealing location for entrepreneurs to
start a business, the reality is that high fixed and marginal costs
negatively impact the bottom line of small business owners, Arora
explained. According to statistics from the U.S. Census Bureau,
African Americans (just over 25%) Hispanics (28.6%) and Asians
(12.7%) combine to comprise the majority of New York Citys
population.
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Biz2Credit Study:
2014s Top Cities for Women Owned
Small Businesses
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Results: 2014s Top Cities for Women Owned SB
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Rank
Top 25 Metro areas with the highest applications
in 2013
Average Annual
Revenue
Average
Credit Score
Average of Age in
Months
Average
BizAnalyzer
Score
1 Jacksonville, FL $ 1,395,927 576 32.6 45.2
2 Charlotte-Concord-Gastonia, NC-SC $ 1,146,263 591 46.6 52.3
3 Chicago-Naperville-Elgin, IL-IN-WI $ 1,076,557 621 40.4 49.5
4 Denver-Aurora-Lakewood, CO $ 1,011,458 638 62.0 54.6
5 Pittsburgh, PA $ 547,125 620 38.0 47.6
8 Las Vegas-Henderson-Paradise, NV $ 427,297 628 33.3 52.5
9 Dallas-Fort Worth-Arlington, TX $ 400,474 600 34.7 45.4
"Denver scored very well because of its thriving technology sector, as well as its
growing organic food and tourism industries

Baltimore ranked surprisingly high in the study of women-owned businesses
because the city was not in the top 25 among cities nationally. Many companies in the
Baltimore-Washington corridor have gotten Woman-Owned Business Certification,
which helps with federal contracts and other advantages.

.Midwestern cities like Milwaukee are growing in the high-tech and medical
technology industries. High end IT startup companies are beginning to emerge in this
area. Further, traditional manufacturing hubs are evolving and supporting IT
companies, and many of them are women-owned.

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Results: 2014s Top Cities for Women Owned SB
"Denver scored very well because of organic food, and tourism, Baltimore ranked surprisingly high. This is because there are many companies in
the Baltimore-Washington corridor have gotten Woman-Owned Business certification, which helps with federal contracts. For this reason,
Baltimore ranks much higher for women-owned businesses than it does in the overall national analysis conducted by Biz2Credit. - Biz2Credit
CEO Rohit Arora,
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The Small Business Lending Industry &
The Financial Struggles Business Owners
Face
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The 2008 Recession took a big toll on small business lending and the effects are still

19.1% Reduction in Small Business Lending since 2008
Loans to Midsize and Large companies saw a 12% increase in the same period
Recession hit small businesses had nowhere to go Rejected by Banks, Denied by the
government
Disconnect between commercial bankers and small businesses over Asset Valuation and
Business understandings

Lending to Big Businesses has gone up and
to Small Businesses has gone down

When you dont need money, you get offers. When you need money, you are denied
The Problem: Small Businesses & the Credit Crunch
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Why Biz2Credit was Created
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To fix the fundamental problem
in the market today
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SMALL BUSINESS
OWNERS
BANKS & OTHER
LENDERS
LACK OF
TRANSPARENCY
What product is best for me?
Where do I go?
Am I getting the best rate?
Process too cumbersome

How do I find good borrowers?
How risky are they?
How do I retain customers?
How do I manage declines?
Process too cumbersome
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Biz2Credit is the solution
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SMALL BUSINESS
OWNERS
BANKS & OTHER
LENDERS
MARKETPLACE
Online
quicker
simpler
lower risk
Thank you
For questions of more information,
please Visit:
http://www.biz2credit.com/research-reports/2014-best-small-business-cities-in-america

Rohit Arora
CEO
Phone: 212.644.4555
Email: rohit.arora@biz2credit.com

Top Cities For Small Businesses in America

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Top Cities For Small Businesses in America

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A Biz2Credit Research Report On

2014s Best Small Business Cities in

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