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.
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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.