The 25 Best US Cities For Small Business


san jose

Getty/Justin Sullivan

San Jose is this year's best city to grow a small business, according to Biz2Credit.

San Jose, a hub of Silicon Valley, is the best city for small business in the United States, according to Biz2Credit's new ranking, out in time for National Small Business Week.


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.

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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