Biz2Credit released its monthly Small Business Earnings Report for December 2024, which revealed the average monthly earnings was $83,083 in 2024, a year that saw a long, steady increase in average month expenses, while revenues fluctuated – rising steadily in the first half of the year and declining from August through December.
The report summarizes financial data of companies that applied for financing via Biz2Credit during the past month and provides an examination of the financial health of small businesses by analyzing primary data submitted by small to midsized firms in the U.S. that uploaded on Biz2Credit’s award-winning online funding platform each month.
“The Biz2Credit Small Business Earnings Report provides one of the most precise and timely sources of small business financial health currently available. It tracks earnings, revenues, and expenses of companies, and juxtaposes the data against inflation over time,” Rohit Arora, CEO and co-founder of Biz2Credit, who oversaw the research, said. “The report examines the financial health of small businesses during a year when inflation rates eased from previous levels, but when cost structures rose sharply and continued to remain high.”
Key Findings
Average SMB Monthly Earnings for the calendar year 2024: $83,083
Average SMB Monthly Revenue for 2024: $747,608
Average SMB Expenses for 2024: $664,525
Average Earnings were highest in 2024 during the month of July ($136,800), a figure that was more than $100,000 less than earnings in September 2023 ($237,700), which was the best month for small businesses during the last three years, according to the Biz2Credit study, which covered January 2022 through December. 2024.
Earnings exceeded $100,000 during the summer months of 2024: June ($128,900), July ($136,800), August ( $130,000) and ($105,400). The downward trend began in July and continued the slide in October ($68,200), November ($49,200), and December ($42,100) of last year.
Average Revenues were highest in the month of July 2024 ($824,700), and lowest in January ($588,500).
Average Expenses rose steadily throughout 2024 from $512,000 in January, the lowest month until October ($709,000), the highest month. Expenses dipped in November and rose again, ending the year at $705,400 in December.
“Although the inflation rate has been trending lower since 2022, the overall cost level for small businesses has increased, and they are unable to raise their prices high enough to make up the difference,” Arora, an expert in small business finance, said. “The cost of rents, insurance, and equipment have soared, as has the cost of labor. Further, businesses that borrowed money often did so at variable rates, so they paid a high cost of capital in 2024. Fortunately for SMB owners, the Federal Reserve has begun to lower rates. Even with lower interest payments, small businesses are operating under many financial pressures, and we are seeing that their profitability was on a steady decline for the second half of 2024.”
“Donald Trump was elected based on his promise to fix the economy, and he says it will be a priority from Day One. He will have to focus not only on lowering interest rates but doing so in a way that does not kick-start inflation in 2025,” Arora said. “Based on the later months of 2024, the start of 2025 could be a rocky one for small businesses.”
