Where’s the best place in the United States to open a new small business?
It’s Sacramento, according to a newly released list compiled by LendingTree, the online lending exchange headquartered in Charlotte, N.C.
LendingTree said Sacramento ascended to the top of the list in a study that included data from more 80,000 queries submitted by new small-business owners seeking loan offers through LendingTree’s small-business loan marketplace to determine where businesses tend to do the best.
Study categories taken into consideration included annual revenue and profitability after expenses.
Businesses included in the analysis had to earn annual revenue of less than $7.5 million, have been in business no longer than five years and must have submitted a loan query to LendingTree between Jan. 1, 2016, and Jan. 23, 2018.
The self-reported business data also was limited to the nation’s 50 most-populous metropolitan areas, as defined by the U.S. Census Bureau.
Sacramento was one of three California cities on the 10-best list, joining Fresno at ninth and Los Angeles at 10th. Following Sacramento on the list were Grand Rapids, Mich; Portland, Ore.; Knoxville, Tenn.; Denver; Seattle; Tulsa, Okla; Albuquerque, N.M.; Fresno; Los Angeles; and Oklahoma City, respectively. Los Angeles and Oklahoma City tied for 10th.
Cincinnati topped the list of the 10 worst cities to start a new small business. No California cities were on the 10-worst list.
Following Cincinnati, in order, on the 10-worst list were Rochester, N.Y.; Philadelphia; Louisville, Ky.; Birmingham, Ala.; Detroit; Harrisburg, Pa.; New Orleans; Virginia Beach, Va.; and Chicago.