NEW YORK, Nov. 21, 2024 (GLOBE NEWSWIRE) — Biz2Credit’s 2024 Top Small Business Industries Study released today identified Manufacturing as the top industry for small businesses. The study found that 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). 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 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,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance. “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.”
Biz2Credit, a leading online funding provider for small businesses, analyzed the financial performance of over 90,000 applications submitted through its online funding platform between January 2023 to December 2023 The six key metrics measured for each industry were:
- Annual Revenue
- Approval Rate for Business Loans
- Average Funded Amounts
- Business Owners’ Credit Scores
- Volume of Funding
- Age of Business
- Operating Expenses
Key Findings:
- 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).
Charts
Top 5 Industries: Average Annual Revenue
| Rank | Industry | 2023 | 2024 | $ Change |
| 1 | Manufacturing | $865K | $1.2M | +$335K |
| 2 | Administrative and Support and Waste Management | $644K | $1.1M | +$456K |
| 3 | Wholesale Trade | $900K | $1.1M | +$200K |
| 4 | Healthcare and Social Assistance | $662K | $943K | +$281K |
| 5 | Accommodation and Food Services | $665K | $930K | +$265K |
Top 5 Industries: Approval Rates by Industry
| Rank | Industry | 2023 | 2024 | % Change | |
| 1 | Healthcare and Social Assistance | 37% | 46% | +9% | |
| 2 | Accommodation and Food Services | 37% | 43% | +6% | |
| 3 | Retail Trade | 30% | 35% | +5% | |
| 4 | Wholesale Trade | 31% | 34% | +3% | |
| 5 | Professional, Scientific & Tech Service | 29% | 32% | +3% | |
Top 5 Industries: Average Funded Amount
| Rank | Top Industries | 2023 | 2024 | $ Change |
| 1 | Information Technology | $100K | $98K | -$2K |
| 2 | Administrative and Support and Waste Management | $65K | $97K | +$32K |
| 3 | Wholesale Trade | $108K | $89K | -$19K |
| 4 | Agriculture, Forestry, Fishing, and Hunting | $63K | $88K | +$17K |
| 5 | Retail Trade | $84K | $88K | +$4K |
Top 5 Industries: Credit Score
| Rank | Top Industries | 2023 | 2024 | Score Change |
| 1 | Manufacturing | 665 | 676 | +11 |
| 2 | Information Technology | 669 | 674 | +5 |
| 3 | Real Estate, Rental & Leasing | 662 | 671 | +9 |
| 4 | Wholesale Trade | 658 | 665 | +7 |
| 5 | Healthcare and Social Assistance | 643 | 662 | +19 |
Top 5 Industries: Volume of Funding
| Rank | Top Industries | 2023 | 2024 | % Change | |
| 1 | Retail Trade | 24.8% | 20% | -4.8% | |
| 2 | Accommodation and Food Services | 15.7% | 16.6% | +.9% | |
| 3 | Healthcare and Social Assistance | 10.6% | 14.8% | +4.2% | |
| 4 | Construction | 12% | 8.4% | -3.6% | |
| 5 | Other Services (except Public Administration) | 7.3% | 7.1% | -0.2% | |
Top 5 Industries: Age of Business (Most Mature)
| Rank | Industry | Age of Business |
| 1 | Manufacturing | 8.8 years |
| 2 | Information Technology | 7 years |
| 3 | Healthcare & Social Assistance | 7 years |
| 4 | Agriculture, Forestry, Fishing, and Hunting | 7 years |
| 5 | Administrative and Support and Waste Management | 7 years |
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%).
- Information Technology 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,” Arora added. “Retail is another industry that rebounded well since the pandemic, so it is little surprise that retail had the highest volume of funding.”
“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,” Arora added.
To view Biz2Credit’s Top Small Business Industries Study results, click here.
Methodology
Biz2Credit, a leading online funding provider for small businesses, analyzed the financial performance of over 90,000 applications submitted through its online funding platform between January 2023 to December 2023. The analysis also incorporated data from January 2024 to June 2024, highlighting emerging trends and providing a more current understanding of the directions taking shape. The report covers 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.
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).
Contact: John Mooney, Over The Moon PR, (908) 720-6057, john@overthemoonpr.com
