Biz2Credit’s 2024 Top Small Business Industries Study identified manufacturing as the top industry for small businesses. The study found that manufacturing companies achieved the highest average revenue ($1.2 million), the highest average credit scores (676), and had the longest established businesses (oldest average age of business, 8.8 years). In other sectors:
- Healthcare and social assistance had the highest funding approval rate (46%)
- Retail trade received the highest volume of funding (20%)
- 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,” Rohit Arora, CEO of Biz2Credit, said. “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.”
Key Findings:
- Manufacturing was the industry with the highest average revenue ($1.2 million), followed by administrative and support and waste management ($1.1 million), and wholesale trade ($1.1 million).
- Healthcare and social assistance had the highest approval rate for all financing applications at 46%, followed by accommodation and 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 ($97,000).
- Manufacturing business owners had the highest average credit score (676), followed by IT (674) and real estate and 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 (seven years) and healthcare and social assistance (seven 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 ($1.3 million).
- Healthcare and 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. Retail is another industry that rebounded well since the pandemic, so it is little surprise that retail had the highest volume of funding,” Arora said. “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.”
