PROVIDENCE – The state’s capital was named the 9th best city in the nation for small business, in Biz2Credit’s 2021 annual Top 25 Small Business Cities in America ranking that was released Tuesday.
Providence was among seven cites that were unranked in 2020 that made the latest top 25 list. The other ranked cities that were unranked in 2020 were Lakeland-Winter Haven, Fla.; Austin, Texas; Port St. Lucie, Fla.; Houston; Nashville and Cleveland.
“The pandemic showed many entrepreneurs – especially those who own technology companies and other firms that can operate virtually – that they did not need to be in large cities,” said Biz2Credit CEO Rohit Arora. “That’s why cities [such as] Providence, Lakeland-Winter Haven, and Port St. Lucie made the list.”
To determine its rankings, factors such as the local business climate, including rents, labor costs and local tax rates were considered. Biz2Credit examined the financials of over 82,000 companies that applied for small-business loans in 2021, including companies that applied for PPP loans.
The report found Providence had the highest credit score at 618. The city was ranked above San Jose and New York, which both posted scores of 617, and Boston which had a score of 614. San Francisco was ranked fifth with a credit score of 610.
“Average Credit Scores were down significantly in 2021. For instance, in last year’s study, top-ranked San Jose came out on top with an average score of 650, and No.10 Tampa-St. Pete was at 629,” Arora explained. “This year, the city with the highest average credit score was Providence at 618, a figure that would not have cracked the top 10 in 2020.”
San Jose was ranked the top city in the nation for small businesses. Baltimore was second, New York was third, Boston was fourth and San Francisco-Oakland was fifth.
“With Silicon Valley thriving, it is no surprise that San Jose has repeated as No. 1 among the Top 25 Best Small Business Cities for 2021. Other tech centers, including New York, Boston and San Francisco also fared well,” Arora said. “Baltimore and Washington, DC, moved up the list dramatically, which is likely the result of an increase in the number of businesses that serve the growing federal workforce.”
Providence also ranked 9th for highest number of small-business loan applications. San Jose, Baltimore, New York, Boston and San Francisco were the top five cities in that category.
This survey sounds out of whack to me.