A look at jobs and economic growth in the state of California
Sacramento is already one of the best cities in the United States for startup businesses, and now a new report suggests many of those businesses are doing quite well to boot.
Using data from the U.S. Census Bureau’s American Survey of Entrepreneurs, online loans marketplace LendingTree compared the number of private businesses with revenues over $1 million in the country’s 50 largest cities between 2014 and 2016 and found Sacramento businesses saw the sixth highest jump in the country.
In this two-year period, 1,183 businesses crossed the million-dollar revenue threshold, a bump of 11.1 percent, according to LendingTree.
Although San Francisco saw a greater number of businesses begin to earn $1 million in the same time – 3,305 businesses celebrated that achievement – its rate of growth was a half-point lower than Sacramento at 10.6 percent, according to LendingTree.
San Jose, another Bay Area economy powerhouse, grew its millionaire businesses by 9.2 percent, while San Diego grew by 10.8 percent, according to LendingTree.
In fact, the only California city to beat Sacramento was Riverside, where businesses became $1 million earners at a rate of 14.8 percent. Riverside tied with Jacksonville, Florida for the second biggest leap, according to LendingTree.
The fastest-growing population of businesses earning $1 million or more were in Austin, Texas, which added 1,857 companies to the category and grew by a rate of 15.1 percent, according to LendingTree.
Many of the cities near the bottom of LendingTree’s report were in the Midwest, with locations such as Oklahoma City, Cleveland, Cincinnati and Milwaukee seeing increases of 2 to 3 percent.
Entrepreneurs in Buffalo, beware – the upstate New York city was the only in the country to report a decrease in businesses earning $1 million. It dropped by four between 2014 and 2016, a decrease of .1 percent, according to LendingTree.
LendingTree’s full report and methodology can be found at lendingtree.com.