Biz2Credit’s Annual Small Business Industry Study Finds Information Technology Firms Ahead in Most Financial Measures

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Biz2Credit

NEW YORK, Nov. 15, 2022 (GLOBE NEWSWIRE) — A new study released by Biz2Credit that analyzed 2021 industry trends among small businesses, finds information technology (IT) companies had the average income highest ($955,793), best credit score ($658), and received the highest average amount of financing ($131,743) when applying for credit.

The retail industry had the highest percentage (27.7%) of all funding granted to small businesses included in the study, while most startups belonged to the transportation and transport industry. warehousing (shortest average in business).

Biz2Credit, a leading provider of online financing for small businesses, analyzed the financial performance of more than 30,000 applications submitted through the company’s online financing platform from January 2021 to December 2021 for its 2022 Top Small Business Report.

The analysis looked at the following metrics: annual revenues, loan approval rates, amounts financed, business owner credit scores, and business age.

Key findings from the study include:

  • The sector with highest average funding amount has been Technological Information (IT) ($131,743), followed by wholesale trade ($107,576), agriculture, forestry, fishing and hunting ($94,333), manufacturing ($83,700) and services administrative support, waste management and remediation ($67,801).

  • THIS business owners had the highest average credit score (658), followed by real estate and leasing (648), manufacturing (645), professional, scientific and technical services (633) and wholesale trade (629). Credit ratings have generally seen a decline as the savings rate began to fall after most government-backed stimulus programs ended in mid-2021.

  • The companies of IT sector had the highest average income ($955,793), followed by manufacturing ($947,662), wholesale ($886,834), retail ($808,598), and accommodation and food services ($725,243).

  • The Retail business had the highest percentage (27.7%) of all small business financing, followed by health care and social assistance (10.7%), services except public administration (10.4%), accommodation and catering (10.4%) and construction (7.2%).

  • Transport and storage was the industry with the the youngest companies (3.9 years), followed by public administration (4.6 years), arts, entertainment and recreation (4.8 years), services except public administration (4.8 years) and retail trade ( 5.1 years). The oldest businesses on average were information technology (7.4 years), manufacturing (7.1 years), agriculture, forestry, fishing and hunting (6.8 years), health care and social assistance (6.5 years) and professional, scientific and technical services (6.5 years).

“Demand for IT services continues to explode as more businesses organize remote work in the aftermath of the pandemic,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in corporate finance. small enterprises.

“IT companies had the highest average approval rates for funding requests. While these companies have done well overall, their customers are often larger companies that take longer to pay external vendors. So they end up borrowing money to manage their free cash from month to month,” Arora added.

Top 5 industries: average annual income

Rank

Industry

2021 study

study 2022

% To change

1

Computer science

$943,778

$955,793

1.3%

2

Manufacturing

$941,815

$947,662

0.6%

3

The wholesale trade

$937,720

$886,834

-5.4%

4

Retail business

$803,973

$808,598

0.6%

5

Accommodation and catering

$730,492

$725,243

-0.7%

Top 5 industries: average amount financed

Rank

Industry

2021 study

study 2022

% To change

1

Technological Information (IT)

$124,477

$131,743

6%

2

The wholesale trade

$114,256

$107,576

-6%

3

Manufacturing

$85,257

$83,700

-2%

4

Administration and support and waste management and remediation

$52,413

$67,801

29%

5

Retail business

$81,966

$67,031

-18%

Top 5 industries: approval rate by industry

Rank

Industry

Approval rate

1

Technological Information (IT)

41%

2

Accommodation/Food

38%

3

Health care/social assistance

38%

4

Manufacturing

36%

5

Retail business

34%

Top 5 Industries: Credit Score

Rank

Industry

2021 study

study 2022

To change

1

Technological Information (IT)

665

658

-seven

2

Real estate and rental leasing

662

648

-14

3

Manufacturing

647

645

-2

4

Professional, scientific and technical services

647

633

-14

5

The wholesale trade

649

629

-20

Top 5 industries: company age (in years)

Rank

Industry

business age

1

Transport and storage

3.9

2

Public administration

4.6

3

Arts, entertainment and recreation

4.8

4

Other services (except public administration)

4.8

5

Retail business

5.1

Methodology

Biz2Credit, a leading provider of online financing for small businesses, analyzed the financial performance of more than 30,000 applications submitted through the company’s online financing platform from January 2021 to December 2021. All businesses included in the Biz2Credit study have less than 250 employees and less than $10 million. in annual income. The report covers small businesses across the country, from start-ups to established businesses. In addition, this year’s report analyzed loan data based on the Small Business Administration database. The objective of the study is to identify the top industries for small businesses over the past year and to measure business performance based on their industry affiliation.

The report covers industries based on the NAICS classification system, including the following:

  1. Accommodation and catering: Restaurants and bars, caterers, hotels, motels, others.

  2. Agriculture, forestry, fishing and hunting: Farms, ranches, dairies, greenhouses, nurseries, orchards or hatcheries.

  3. Business and professional services: Accounting and tax preparation, bookkeeping, payroll services, as well as legal, marketing and design services.

  4. Health care: General medical services, doctors’ offices, dentists’ offices, visiting nurses’ services, residential care facilities, physiotherapists’ offices, mental health clinics.

  5. Technological Information (IT): Software developers, software consultants, high-tech recruitment firms.

  6. Manufacturing: Companies involved in the manufacture of durable and non-durable goods.

  7. Personal Services: Salons, gymnasiums, dance and yoga studios, laundry and dry cleaning, landscaping, cleaning services and others.

  8. Retail business: Physical stores, e-commerce companies, clothing and fashion, florists, grocery stores, pharmacies, home furnishings and others.

  9. The wholesale trade: Food distributors, wholesale grocers, distributors of various durable goods.

About Biz2Credit
Founded in 2007, Biz2Credit has arranged over $7 billion in small business financing. The company extends its cutting-edge technology into customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com or Twitter @Biz2Credit, Facebookand LinkedIn.

Contact: John Mooney, Moon Public Relations, (908) 720-6057, [email protected]

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