Houston is the nation’s fastest growing city for small businesses, taking into consideration average annual revenue, average number of employees, average age of business, highest average credit score, and local sales tax rates, according to Biz2Credit.com. It is fantastic to see small business growing here, but this is a trend we want to see replicated across the country. Nay, the entire world. Financing can often be an issue for small businesses, but places like scottish pacific invoice financing are able to provide guidance and support. With developing a start-up there is a lot to contemplate, from invoices and finances to finding the cheapest toll free providers for your business numbers. Start-up businesses do have a long way to go and can a lot of hard work, but one that is worth it in the end.
Jobs, diversity and recent growth in the number of start-ups helped boost Houston to the top. The rest of the top 5: Washington, Los Angeles, New York City and Miami-Fort Lauderdale.
See the chart below for the top 25 metro areas with highest small-business loan application growth 2011-12 (sorted by annual revenue).
Biz2Credit CEO Rohit Arora: “Houston has had sustained growth, thanks to an influx of immigrants who have started their own businesses. The city’s small businesses have created the highest average number of jobs (7.1) and are the youngest in age (34 months), meaning that these are new businesses that have started up only in the past three years.”
Arora also said that local governments “cannot handcuff entrepreneurs with fees and costs” if they want to attract more small businesses.
Chicago and Los Angeles tied for highest local sales tax rate (9.75 percent). San Francisco-Oakland Bay Area, Seattle, St. Louis and Phoenix also had total sales tax rates of over 9 percent.
For its analysis, Biz2Credit defined “small businesses” as companies having fewer than 250 employees or less than $10 million in annual revenues.
Biz2Credit.com identified the fastest growing small business cities based on the following criteria:
- Average Annual Revenue: Riverside-San Bernardino, CA ($508,538)
- Average Number of Employees: Houston (7.1)
- Youngest Average Age of Business (in Months): Houston (34.0)
- Highest Average Credit Score: San Francisco-Oakland BayArea (643)