Founded in 2007 Biz2Credit made a study about 2021 industry trends for small businesses, which reveals that Information Technology (IT) firms which have the highest average revenue ($955,793), the good credit score (658), and made the top average amount of financing ($131,743) when they were in need of credit.The Retail Industry had the highest total percentage (27.7%) of all funding issued to small businesses included in the study, while the most startups were in the Transportation & Warehousing industry (lowest amount of time in business on average).
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Biz2Credit, a headshot for the online funding provider to small business houses, analyzed the financial performance for more than 30,000 applications submitted through the company’s online platform for funding from January 2021 to December 2021 for its 2022 Top Small Business Industries Report.The analysis examined the following parameters: Loan Approval Rates, Annual Revenue, Funded Amounts, Age of Business and Business Owners’ Credit Scores.The study revealed the following:
- The domain with the top average funding amount was Information Technology (IT) ($131,743), and second place was occupied by Wholesale Trade ($107,576), Forestry, Agriculture, Fishing & Hunting ($94,333), Manufacturing ($83,700), Waste Management & Remediation Services ($67,801) and Administrative Support.
- IT business stakeholders had the topmost average credit score (658), cued by Real Estate & Rental Leasing (648) and Manufacturing (645), Professional, Scientific, and Technical Services (633), while Wholesale Trade (629) was on list. Credit scores saw a downward trend as the savings percentile began to slow down following the end of most government-backed programs in mid-2021.
- Businesses in the IT sector had the highest average revenue ($955,793), was followed by Manufacturing ($947,662), Wholesale Trade ($886,834), Retail Trade ($808,598) and Accommodation/Food Services ($725,243).
- The Retail Industry had the largest percentage (27.7%) of all funding issued to small businesses, followed by Health Care and Social Assistance (10.7%), Services except Public Administration (10.4%), Accommodation and Food Services (10.4%), and Construction (7.2%).
- Transportation & Warehousing was the domain with the youngest businesses (3.9 years), cued by Public Administration (4.6 years), Arts & Recreation (4.8 years). In the services domain except Public Administration (4.8 years approximately), while retail stood at (5.1 years). The highest in tenure businesses were Information Technology for 7.4 years while Manufacturing gave a tough beat at 7.1 years, Agriculture, Forestry, Fishing & Hunting stood no less at 6.8 years, Health Care & Social Assistance for approximately 6.5 years and Professional, Scientific, & Technical Services for 6.5 years.
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“Demand for IT services continues to boom as more and more companies arrange for remote working in the aftermath of the pandemic,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance. “IT companies saw the highest average approval rates for financing requests. Although these companies did well overall, their clients are often larger firms that take longer to pay outside vendors. Thus, they wind up borrowing money to manage their available cash month to month,” Arora added.
Top 5 Industries: Average Annual Revenue
| Rank | Industry | 2021 study | 2022 study | % Change | |||||
| 1 | Information Technology | $943,778 | $955,793 | 1.3% | |||||
| 2 | Manufacturing | $941,815 | $947,662 | 0.6% | |||||
| 3 | Wholesale Trade | $937,720 | $886,834 | -5.4% | |||||
| 4 | Retail Trade | $803,973 | $808,598 | 0.6% | |||||
| 5 | Accommodation and Food Services | $730,492 | $725,243 | -0.7% |
Top 5 Industries: Average Funded Amount
| Rank | Industry | 2021 study | 2022 study | % Change | |||||
| 1 | Information Technology (IT) | $124,477 | $131,743 | 6% | |||||
| 2 | Wholesale Trade | $114,256 | $107,576 | -6% | |||||
| 3 | Manufacturing | $85,257 | $83,700 | -2% | |||||
| 4 | Administrative and Support and Waste Management and Remediation | $52,413 | $67,801 | 29% | |||||
| 5 | Retail Trade | $81,966 | $67,031 | -18% |
Top 5 Industries: Approval Rates by Industry
| Rank | Industry | Approval rate | |||||||
| 1 | Information Technology (IT) | 41% | |||||||
| 2 | Accommodation/Food Services | 38% | |||||||
| 3 | Health Care/Social Assistance | 38% | |||||||
| 4 | Manufacturing | 36% | |||||||
| 5 | Retail Trade | 34% |
Top 5 Industries: Credit Score
| Rank | Industry | 2021 study | 2022 study | Change | |||||
| 1 | Information Technology (IT) | 665 | 658 | -7 | |||||
| 2 | Real Estate and Rental Leasing | 662 | 648 | -14 | |||||
| 3 | Manufacturing | 647 | 645 | -2 | |||||
| 4 | Professional, Scientific, and Technical Services | 647 | 633 | -14 | |||||
| 5 | Wholesale Trade | 649 | 629 | -20 |
Top 5 Industries: Age of Business (in Years)
| Rank | Industry | Age of Business | |||
| 1 | Transportation and Warehousing | 3.9 | |||
| 2 | Public Administration | 4.6 | |||
| 3 | Arts, Entertainment, and Recreation | 4.8 | |||
| 4 | Other Services (except Public Administration) | 4.8 | |||
| 5 | Retail Trade | 5.1 |
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