Grand Rapids is No. 2 city for 'new small businesses'
Grand Rapids has been ranked as the second-best city in the country for new small businesses.
LendingTree published this week a ranking of the “Best and Worst Places for New Small Businesses,” and Grand Rapids ranks No. 2, with 85.2 percent of the city’s small businesses reporting profitability and businesses earning average annual revenue of $293,495 per business.
Sacramento, California is No. 1, with 84.3-percent profitability and $315,661 in average annual revenue. Portland, Oregon is No. 3, with 83.2-percent profitability and $317,665 in revenue.
LendingTree used data from more than 80,000 queries submitted by new small business owners seeking loan offers to determine where businesses tend to do the best.
Annual revenue was the first factor considered, but as gross revenue doesn’t always equate to profitability because of business type and geography, LendingTree analyzed the percentage of businesses that reported they were profitable at the time of their loan queries.
Businesses included in the ranking had less than $7,500,000 in annual revenue, were in business for at least six months and no longer than 60 months and submitted a loan query to LendingTree between Jan. 1, 2016 and Jan. 23, 2018.
“The 10 Best Places for New Small Businesses”
1. Sacramento, California
2. Grand Rapids
3. Portland, Oregon
4. Knoxville, Tennessee
7. Tulsa, Oklahoma
8. Albuquerque, New Mexico
9. Fresno, California
10. Los Angeles and Oklahoma City (tied)
“The 10 Worst Places for New Small Businesses”
42. Virginia Beach, Virginia
43. New Orleans
44. Harrisburg, Pennsylvania
46. Birmingham, Alabama
47. Louisville, Kentucky
49. Rochester, New York