Getty/Justin Sullivan
San Jose is this year's best city to grow a small business, according to Biz2Credit.
This is the second annual report by Biz2Credit, an online credit marketplace for small businesses. The rankings are based on a weighted average that includes local small businesses' annual revenue, credit score, age in months, cash flow, debt-to-income ratio, incorporation, and the business owners' personal credit scores. All data is from 2013.
A small business is defined as one with fewer than 250 employees and less than $10 million in annual revenues.
San Jose's No. 1 ranking is based on Main St. stores rather than tech startups. "The uplift in the northern California economy has not just benefited tech-centric startups," says Rohit Arora, cofounder and CEO of Biz2Credit. The money and workers brought in by high-profile tech companies boosts all Silicon Valley businesses, including gas stations, restaurants, and boutique shops, he explains.
Perhaps surprisingly, Detroit ranks as No. 2 on this year's list. Arora says Michigan's government has made credit more accessible, and the automotive industry's rebound has benefited businesses in the Detroit-Dearborn area.
You can find the data breakdown for each metro area in the complete report at Biz2Credit.com.