NEW YORK, Dec. 18, 2024 (GLOBE NEWSWIRE) — Biz2Credit today unveiled its Small Business Earnings Report, a new monthly report examining the financial health of small businesses in America. The study looks at the performance of small to midsized firms in the U.S. – from early stage to established companies — that applied for financing via Biz2Credit’s online funding platform during the past month.
The report provides one of the most precise and timely sources of small business financial health currently available. It tracks earnings, revenues, and expenses of companies, and inflation over time. Key components include Revenue Growth (monthly and year-over-year (YoY) average), Expenses, and Estimated Earnings/Profitability (measuring how much profit businesses are earning.
Key Findings for 2024
- The average earnings for the first 11 months of 2024: $86,809. Average revenue thus far this year is $747,618, while average expenses total $660,809.
- Inflation overall for the first 11 months of 2024 is 2.96%, which is still above the Fed’s target rate of 2.0% when determining lending interest rates, but below the average rate for 2023 (4.1%) and 2022 (8%).
- Average revenues ($824,700) were highest in the month of July, while average expenses were highest ($709,000) in October. July was the month with the highest earnings ($136,800).
- When contrasting with results from 2023, average revenues for the first 11 months of 2024 were higher by $232,410 ($747,618-$515,208), average expenses are up $296,517 ($660,809-$364,292), and profits are lower by $64,108 ($86,809-$150,917) in 2023.
“The Biz2Credit Small Business Earnings Report provides a measure of the financial health of small businesses,” said Rohit Arora, CEO and co-founder of Biz2Credit, who oversaw the research. “While the inflation rate has been trending lower since 2022, the overall cost level has increased, and small business owners cannot raise their prices to compensate. Prices for fixed items such as leases, insurance, and equipment have soared, while variable costs, such as labor, also continuously rise. Small businesses are being crunched.”
“Our Small Business Earnings Report is a pulse on the profitability of small businesses in the economy right now,” added Arora, one of the nation’s leading experts in small business finance. “America needs to pay attention to how small businesses are doing. They are the backbone of the U.S. economy and create the lion’s share of jobs in the private sector. As President-elect Trump focuses on inflation, interest rates, and the economy overall when he returns to the White House, I expect that the growth of small businesses will be among his priorities.”
Biz2Credit will continue to monitor the revenues and earnings of the tens of thousands of companies that apply for financing on the online platform each month to provide one of the most up-to-date readings on small business health currently available.
The data is drawn from applications submitted on Biz2Credit’s award-winning financing platform each month. Click here to review the Small Business Earnings Report. Each month the report will showcase the financial performances of small businesses in terms of changes in average revenue and expenses.
Methodology
Biz2Credit examines a number of small business financial metrics in their Small Business Earnings Report, including annual revenue, operating expenses, age of business, credit score, approval rate, and funding rate. Data is drawn from real small business financing applications through the Biz2Credit financing platform.
About Biz2Credit
Founded in 2007, Biz2Credit has helped thousands of companies access more than $10 billion in small business financing. The company is expanding its industry-leading Biz2X technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit www.biz2credit.com, LinkedIn, Instagram, Facebook, and X (formerly Twitter).
Editor’s Notes:
- A spreadsheet of three years’ worth of earnings data is available upon request.
- Biz2Credit CEO, Rohit Arora, a leading expert in small business finance, is available to comment on the findings of the first edition of this brand new report on small business health and the small business economy overall.
Media Contact: John Mooney, (908) 720-6057, john@overthemoonpr.com
