Biz2Credit.com, an Internet business credit service, has named Denver the third Best Small Business City in America in a report released Monday.
The ranking of the top 25 best small business cities was based on a weighted average that includes annual revenue, credit score, age of business (in months), cash flow, debt-to-income ratio, incorporation (C-Corp or LLC vs. sole proprietorship) and business owners’ personal credit scores, according to the press release.
“San Jose remains the center of innovation and new business job creation in the U.S.,” said Biz2Credit CEO Rohit Arora, who oversaw the research. “Surprisingly, Detroit-Dearborn scored very well in large part because of the auto industry’s rebound and the growing technology sector in the area.”
Meanwhile, despite being the nation’s financial hub and a city with a thriving economy, the New York City metro area ranked only seventh in the Biz2Credit’s Best Small Business Cities ranking because of the high cost of doing business.
Houston dropped from the top spot last year. “The oil boom in Texas has slowed a little, and business growth is not at the pace that we saw last year.”
For this analysis, Biz2Credit defined small businesses as companies having fewer than 250 employees or less than $10 million in annual revenues. The Top 25 Cities for Small Business in 2014 are:
1. San Jose-Sunnyvale-Santa Clara, Calif.
2. Detroit-Dearborn, Mich.
3. Denver
4. Los Angeles-Long Beach-Anaheim, Calif.
5. San Francisco-Oakland, Calif.
6. Las Vegas, Nev.
7. New York metro area
8. Atlanta, Ga.
9. Washington, DC metro area
10. Miami-Fort Lauderdale-West Palm Beach, Fla.
11. Riverside-San Bernardino, Calif.
12. Tampa-St. Petersburg, Fla.
13. Sacramento, Calif.
14. Indianapolis, Ind.
15. Houston, Texas
16. Chicago, Ill.
17. Portland, Ore.
18. Dallas-Fort Worth, Texas
19. Phoenix-Scottsdale, Ariz.
20. Charlotte, N.C.
21. San Antonio, Texas
22. Seattle-Tacoma, Wash.
23. Jacksonville, Fla.
24. Philadelphia, Pa.
25. Orlando-Kissimmee, Fla.
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