Information Technology (IT) companies will outperform companies in other industries in most performance measures since the COVID pandemic in 2022. Biz2Credit analyzed industry trends in the year 2021 among the 30,000 small companies, found that the IT company has the highest revenue ($955,793), the best credit. (658), and received the highest average amount of funding ($131,743) when seeking credit.
The retail industry has the largest percentage (27.7%) of all funding issued to small businesses included in the survey, while the majority of start-ups were in Transportation & Warehousing (minimum business hours in general).
Biz2Credit’s 2022 Small Business Report analyzed the following dimensions: Annual revenue, loan approval rate, capital generated, number of business owners and age of the business.
- The domain of the maximum funding average is Information Technology (IT) ($131,743), followed by Wholesale Trade ($107,576), Agriculture, Forestry, Fishing and Hunting ($94,333), Construction ($83,700) and Administrative Services, Waste Management and Rehabilitation ($67,801).
- that’s it business owner had the maximum average (658), followed by Real Estate & Rental Leasing (648), Manufacturing (645), Professional, Scientific, and Technical Services (633), and Wholesale Trade (629). Overall interest rates saw a decline as savings rates began to decline after the end of most government-backed stimulus programs in mid-2021.
- Companies in the IT sector had the maximum average income ($955,793), followed by Manufacturing ($947,662), Wholesale Trade ($886,834), Retail Trade ($808,598) and Housing/Food Services ($725,243).
- the Retail industry had the largest percentage (27.7%) of all funding given to small businesses, followed by Health Care and Social Assistance (10.7%), Services except Public Administration ( 10.4%), Housing and Food (10.4%) and Construction (7.2%).
- Transport and storage of goods was the industry with the youngest company (3.9 years), followed by Public Administration (4.6 years), Arts, Entertainment and Recreation (4.8 years), Services except Public Administration (4.8 years), and Retail Trade (5.1 years). The industries with the longest tenure on average are Information Technology (7.4 years), Manufacturing (7.1 years), Agriculture, Forestry, Fishing & Hunting (6.8 years), Health Care and Assistance social (6.5 years) and professional, scientific and technical services (6.5 years).
The demand for IT services continues to grow as more and more companies organize operations on the ground after the pandemic. IT companies saw the highest average approval rate for funding requests. Although these companies generally performed well, their customers were larger companies that took longer to pay abroad. Therefore, they take out loans to manage their monthly income.
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Biz2Credit, a provider of online financing for small businesses, analyzed the financial performance of more than 30,000 applications submitted through the company’s online financing platform from January 2021 to December 2021. All companies included in the Biz2Credit study have fewer than 250 employees and less than $10 million in annual revenue.
The report covers small businesses across the country, from start-ups to established companies. In addition, this year’s report analyzed loan data based on data from the Small Business Administration. The purpose of the survey is to identify the top industries for small businesses over the past year and to measure the performance of businesses based on their industry. To view the full report, Click here.
The report covers industries based on the NAICS classification system, including the following:
- Accommodation and food service: Restaurants and bars, restaurants, hotels, motels, others.
- Farming, forestry, fishing and hunting: Farm, ranch, dairy, homestead, farm, garden, or farm.
- Business and professional services: Financial and tax preparation, bookkeeping, payroll services, as well as legal, marketing and design services.
- Health care: General health services, doctor’s offices, dental offices, nurse visiting services, nursing homes, physical therapy offices, psychiatric clinics.
- Information Technology (IT): Software developer, software consultant, high technology staffing company.
- manufacturing company: Companies involved in the manufacture of durable and non-durable goods.
- Special offers: Salon, restaurant, dance and yoga studio, laundry and dry cleaning, laundry, cleaning services, and others.
- Retail trade: Brick-and-mortar stores, e-commerce companies, clothing and fashion, florists, grocery stores, pharmacies, home appliances, and others.
- Wholesale trade: Food distributors, wholesalers, distributors of various durable goods.