Biz2Credit, a leading online funding provider to small businesses, conducts an annual study to identify the top industries for small businesses during the preceding year and to measure the performance of businesses based on their industry affiliation.
In their latest study, Biz2Credit analyzed the financial performance of over 52,000 applications submitted through the company’s online funding platform from January 2022 to December 2022.
Biz2Credit’s 2023 Top Small Business Industries Report released on Tuesday, December 5, identified Wholesale Trade as the top industry for small businesses. The study found that wholesalers had the highest average annual revenue and small business loan average funded amount.
In other sectors, Health Care & Social Assistance had the highest funding approval rate, and Information Technology (IT) led with the highest credit score. The Manufacturing sector had the longest established businesses, while Transportation and Warehousing was the industry with the youngest businesses.
“Wholesale Trade had a very good year in 2022 as pandemic-related supply chain issues dissipated. The industry posted the highest average revenue and the highest average funded amount.” Rohit Arora, CEO of Biz2Credit
“Wholesale Trade had a very good year in 2022 as pandemic-related supply chain issues dissipated. The industry posted the highest average revenue and the highest average funded amount,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance, who oversaw the research.
All companies included in the Biz2Credit study have less than 250 employees and less than $5 million in annual revenues. The report covers small businesses across the country, from start-ups to established companies. In addition, this year’s report analyzed lending data based on the Small Business Administration’s database.
Key findings of the study include:
- Wholesale Trade was the industry with the highest average revenue ($900,076), followed by Manufacturing ($865,000), Information Technology ($791,103), Construction ($720,451), and Accommodation and Food Services ($666,910).
- Healthcare and Social Assistance and Accommodation & Food Services had the highest approval rate for all financing applications at 37%, followed by Manufacturing (32%), Wholesale Trade (31%), and IT (30%).
- Wholesale Trade ($108,352) was the sector with the highest average funding amount, followed by Information Technology ($99,586), Retail Trade ($83,934), Manufacturing ($68,803), Accommodation & Food Services ($64,839), and Administrative & Support and Waste Management & Remediation Services ($64,614).
- IT business owners had the highest average credit score (669), followed by Manufacturing (665), Real Estate/Rental and Leasing (662), Wholesale Trade (658), Professional, Scientific, and Technical Services (650), and Finance and Insurance (646). Credit scores generally rose compared to last year’s numbers.
- Retail Trade had the highest volume (24.8%) of funding issued to small businesses, followed by Accommodation and Food Services (15.7%), Construction (12.2%), Health Care and Social Assistance (10.6%), and Other Services (7.3%).
- Transportation & Warehousing was the industry with the youngest businesses (3.1 years), followed by Arts, Entertainment, & Recreation (4.2 years), Other Services except Public Administration (4.3 years), Real Estate/Rental and Leasing (4.5 years), Retail Trade (4.5 years), Accommodation and Food Services (4.5 years), and Wholesale Trade (4.8 years).
- Manufacturing (7.4 years) was the most established industry on average, followed by Information Technology and Educational Services (6.1 years), Finance and Insurance (6.0 years), Health Care and Social Assistance (5.9 years), and Professional, Scientific, and Technical Services (5.7 years).
View the full report here.
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