The 2024 Biz2Credit Top Cities for Small Business Study analyzed over 60,000 companies across the U.S. and found that San Jose, California, is the top city for small businesses, with San Francisco coming in second place. The study considered factors such as annual revenue, credit score, age of business, and other financial data provided by companies that applied for funding in 2023. Newcomers to the top city list include Colorado Springs, Greater Bridgeport, CT, Salt Lake City, Minneapolis, Port St. Lucie, FL, and Phoenix.
San Jose, known as the birthplace of Silicon Valley, has a long history of innovation and a thriving ecosystem that supports small businesses. The city is home to approximately 66,000 businesses employing over 439,000 workers across various sectors such as advanced manufacturing, healthcare, and software. More than 2,500 high-tech companies are based in San Jose, benefiting from access to the Bay Area and a skilled workforce with degrees in science, engineering, technology, and math.
The city’s Office of Economic Development offers a range of business assistance programs to support entrepreneurs and foster economic opportunities. Small businesses in San Jose reported high average annual revenues and strong average credit scores, reflecting the city’s conducive environment for small business growth. Other top cities for small businesses included tech hubs like San Francisco and Seattle, as well as newcomers Colorado Springs, CO, and Greater Bridgeport, CT.
Key findings from the study revealed that the leading industries among the top cities include Accommodation and Food Services, Other Services, and Construction. Average annual revenue increased by 10.4%, while average expenses increased by 13.8%, resulting in a slight decrease in average earnings. Average credit scores and the age of businesses also saw increases compared to the previous year.
Eight cities made their debut on the list this year, while eight cities dropped off from the previous year’s rankings. Cities like San Francisco, San Diego, New York, and Boston experienced declines in their rankings, while cities like San Jose, Seattle, and Providence saw improvements. California dominated the list with seven cities, while Florida had only one representation with Port St. Lucie at No. 20. Texas did not have any cities on the list for small businesses.
Overall, the 2024 Biz2Credit Top Cities for Small Business Study highlighted the strength of cities like San Jose in fostering environments that support and encourage small business growth. With factors such as high education levels, access to a skilled workforce, and a supportive business ecosystem, these cities continue to attract and nurture small businesses across various industries.
