When it comes to success stories, tech entrepreneurs and tech startups capture much of the American imagination. But what many people don’t realize is just how much opportunity sits within another sector entirely – the small (or micro) business sector – where businesses of just 1 to 5 workers know a thing or two about carving out their own path to success.
In celebration of the entrepreneurial spirit that forms the true backbone of the U.S. economy, Invoice2go has released it’s second annual ranking of the top 25 cities for small business in the U.S.
The ranking was determined by looking at the aggregate invoicing data of more than 20,000 businesses across every industry under the sun – from carpenters to plumbers, and freelance DJs to fitness trainers – everyone who uses Invoice2go to track their work and get paid. Covering such a diverse array of industries, it’s a traditionally difficult sector to measure and understand. These results shed light on how much business is ripe for the taking for anyone who puts their skills to work by starting a business.
Here’s a look at the 2016 Top 25 U.S. Cities for Small Business, determined by the average amount each city’s local business invoiced during the year using Invoice2go.
The 2015 ranking can be found here.
- Dallas, TX – Jumping from the number eight spot to number one, small businesses in Dallas invoiced an average of $214,805 in 2016. Credit it in part to the ongoing boom in office construction with a number of corporations bringing thousands of new residents to the Dallas-Fort Worth area. That’s been good news for the small businesses that build, fit out and renovate office space, and those who offer services to a growing economy.
- Portland, OR – All boats seem to be rising in Portland. Fuelled by the booming tech and athletics industries, and a lower cost of living (particularly compared to neighboring California) that’s attracting new residents in droves, Portland was a hotbed for growth this year. From contractors working on residential projects, to food and retail, small businesses across industries are thriving here. Small businesses here invoiced an average of $201,498 in 2016.
- Houston, TX – Small businesses buzzed in Houston, another Texan city touted as one of America’s next boom towns. Houston was also recently ranked number two fastest growing city in the U.S., just behind New York, enjoying double-digit job growth from 2010 to 2014. With growth comes opportunity, and small business owners across industries – from construction workers, electricians, cleaners, and other service providers – invoiced an average of $191,805 for the year. Houston moved up eight spots from last year, to number three.
New cities to the Top 25:
- Portland, OR (#2)
- Raleigh, NC (#6)
- Sacramento, CA (#7)
- Boston, MA (#12)
- Tampa, FL (#17)
- St. Louis, MO (#19)
- Pittsburgh, PA (#25)
- Averages higher than last year – We couldn’t help but notice the significant jump in average dollars invoiced across the board. Small businesses in last year’s highest achieving city, Seattle, WA, invoiced an average of $179,905. This year’s top average comes from Dallas, TX, where business owners are invoicing $214,805 every year. One reason for this could be that the cities taking the top three places are all “boom towns” – where business has gone through the roof this year, outpacing industry norms at every turn. Another theory could be that because our customers can now accept debit and credit card through Invoice2go, they may be doing more business in general, and processing larger invoice volumes. We’ve heard time and time again that customers tend to spend more when they know they can put it on card.
- Texas booming – It was interesting to see the correlation of our findings, with that of commentary around Texas as a boom state. Dallas, TX of course came in number one ($214,805 invoiced on average), and Houston, TX came in as number three ($191,805 invoiced). All four of Texas’ major metros made Forbes’ Top 10 List of Boom Towns- each experiencing job growth, and income growth far above the national average. If your a small business owner, Texas may very well be the place to be.
- Blue collar tops the Highest Earning Industries ranking – It’s also interesting to note, according to our recent Highest Earning Industries in the US ranking, many of the businesses that invoiced the most in 2016 were blue collar businesses – from construction, roofing, painting, flooring, heating & air conditioning, carpentry, electrical and plumbing.
We’re excited to be a part of what’s fueling businesses in every sector to succeed. Tech tools like Invoice2go make it simpler than ever for small business owners to get off the ground, and operate in a way that sees them staying efficient on the go, looking professional, and managing their cash flow.
Interested in seeing how these trends change over time? Follow us and stay up to date with the latest from Invoice2go.
For more information about the latest rankings, please contact us at firstname.lastname@example.org.
Invoice2go’s 2016 Highest Achievers List was compiled by aggregating annual invoicing activity of more than 20,000 US-based Invoice2go users. The ranking was determined by the average dollar amount invoiced per month by the local businesses in each city from January to November 2016. Includes cities that have a minimum of 100 businesses invoicing through Invoice2go, and excludes outlier businesses invoicing more than $100,000/month.
Invoice2go is a mobile app that makes it effortless for small business owners and freelancers to track jobs and get paid. It’s trusted by more than 250,000 small business owners to invoice more than $1 billion every month.