The annual Best Small Business Cities in America Study ranking of 25 cities is based on a weighted average of data on Biz2Credit’s customers across the country. It looks at the health of small businesses in each metro area, the rate of small-business creation and the economic ecosystem for entrepreneurs, including the cost of doing business, tax climate and local talent pool.
Biz2Credit analyzed 12,000 businesses with fewer than 250 employees from across the country. These firms were in operation for more than a year and had less than $10 million in annual revenues.
The Riverside-San Bernardino area shot to the top spot after scoring in the top five in average credit score, average annual revenue, number of employees and the BizAnalyzer score, which takes into account local economic factors, such as the cost of doing business and tax rate. It also finished in the top 10 for its thriving start-up culture. The average age of businesses in the area is 34 months.
Top 10 cities for small business
- Riverside-San Bernardino, California
- New York Metro
- Charlotte, North Carolina
- Las Vegas
- San Francisco-Oakland, California
- Miami-Fort Lauderdale, Florida
- Los Angeles
- Dallas-Fort Worth, Texas
The Riverside-San Bernardino area is a hub for IT, advanced manufacturing, food processing, health and medicine and professional services. The ecosystem for growth companies is strong, since it has such resources as incubators, accelerators and co-working spaces, as well as a Shop Riverside campaign to promote local businesses.
According to the survey, small businesses in Riverside-San Bernardino had average annual revenues of $1,400,960, ahead of the No. 2 city, New York, where average annual revenues were $1,269,859. San Francisco-Oakland placed third, with average annual revenues of $671,000.
“Technology is bringing in younger people and more immigrants to this metro area,” explained Rohit Arora, CEO of Biz2Credit. “Riverside, California, has a pretty big immigrant population.” It includes immigrants from Southeast Asia, Central America and the Middle East.
Nathan Sklar, a health-care entrepreneur, recently expanded his business operations from New York City to Riverside, California. In Manhattan he runs three entities: Comprehensive Kids Developmental School, a not-for-profit school for children with autism; Grand Street Medicine and Rehab, an outpatient facility for occupational physical therapy; and Comprehensive Evaluations, which provides evaluation services for children. Together they employ about 250 people.
He opened Comprehensive Certified Home Health Services in Riverside, California, five to six years ago. It is a home-care agency that provides nursing services, home health aides and related services, employing about 50 people. Sklar branched out into California during a moratorium on home-care licenses in New York. California had no moratorium.
“We’ve been growing at a steady pace,” he said, adding that between his New York and California operations, his ventures bring in combined revenue that range from $15 million to $25 million annually.
Riverside embraces economic growth and directs it so it maintains and improves our already outstanding quality of life. This ranking is yet another example of Riverside continuing to fuel the intelligent growth of the city and region.
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