In a good sign for the American production, Biz2Credit’s 2024 Top Small Business Industries Study identified Manufacturing companies achieved the highest average revenue ($1,211,760), the highest average credit scores (676), and had the longest established businesses (oldest average age of business, 8.8 years).
Meanwhile, in other sectors, Healthcare & Social Assistance had the highest funding approval rate (46%), Retail Trade received the highest volume of funding (20%), and Information Technology (IT) secured the highest average funding amount ($98,311).
A combination of a steady economy and government incentives have helped boost domestic manufacturing, which led three categories our study analyzed. Laws such as the CHIPS Act and the Infrastructure Act have provided financial incentives to boost domestic manufacturing, particularly in technology, which has helped small manufacturers.
The study analyzed the financial performance of over 90,000 applications submitted through Biz2Credit’s online funding platform between January 2023 to December 2023. Six key metrics were measured for each industry: average annual revenue, approval rate for business loans, average funded amounts, business owners’ credit scores, volume of funding, age of business, and operating expenses. The analysis found:
- Manufacturing was the industry with the highest average revenue ($1,211,760), followed by Administrative and Support and Waste Management ($1.1M), and Wholesale Trade ($1.1M).
- Healthcare & Social Assistance had the highest approval rate for all financing applications at 46%, followed by Accommodation & Food Services (43%), and Retail Trade (35%).
- Information Technology ($98,311) was the sector with the highest average funding amount, followed by Administrative and Support, and Waste Management ($97K).
- Manufacturing business owners had the highest average credit score (676), followed by IT (674), and Real Estate/Rental and Leasing (671).
- The industry with the highest volume of funding was Retail Trade (20%) followed by Accommodation and Food Services (16.6%), and Healthcare and Social Assistance (14.8%).
- Manufacturing (8.8 years) was the most established industry on average, followed by IT (7 years), and Healthcare and Social Assistance (7 years).
The report covered small businesses across the country, from start-ups to established companies. The objective of the study is to identify the top industries for small businesses during the preceding year and to measure the performance of businesses based on their industry affiliation.
To provide more current insights into the direction small businesses are headed, Biz2Credit also examined additional data from January – June 2024. Six-month findings were:
- Wholesale Trade had the highest average revenue ($1,345,157).
- Healthcare & Social Assistance had the highest approval rate (43%).
- IT had the highest average funded amount ($131,480).
- Wholesale Trade had the highest average credit score of 669.
- Retail Trade had the highest volume of funding, contributing 20.3% of the overall funding.
Healthcare, a steady industry in this economy, had the highest approval rate, while IT had the highest funded amounts. These are industries that did well throughout the past year and a half. Retail is another industry that rebounded well since the pandemic, so it is little surprise that retail had the highest volume of funding.
President-elect Donald Trump arrives to speak at the Palm Beach Convention Center on Nov. 06, 2024 … [+]
These are industries that are poised to continue doing well as the new Trump administration, with its focus on the economy, takes over in January.
To view the entire report, click here.
This post was originally published on here
