Small Business Earnings on the Rise: A Five-Month Trend
Exciting Trends in Small Business Earnings
Small businesses are celebrating a significant milestone as Biz2Credit’s monthly Small Business Earnings Report shows that average monthly earnings have climbed to $49,300 in May. This marks an encouraging rise from April’s figures and reflects a remarkable 53% increase since the beginning of the year. As we delve further into this promising trend, it’s essential to understand the key factors driving this growth.
Key Findings from the Latest Report
The data for May reveals some striking numbers that indicate a positive trend in the small business sector:
Average Monthly Earnings
The average monthly earnings surged to $49,300. This is up from $47,700 in April, showing an increase of $1,600.
Average Monthly Revenue
Similarly, average monthly revenue has also seen an increase, reaching $592,600 from April’s $554,900. This reflects a notable increase of $37,700.
Average Monthly Expenses
Reflecting a healthy financial landscape, average monthly expenses increased to $544,200, rising from $501,900 in April, which is an increase of $42,300.
Positive Business Climate Ahead
With summer approaching and inflation rates remaining stable, small businesses are experiencing a favorable environment for growth. This positive trend in financial metrics indicates a thriving sector, which resonates with the recent uptick in the U.S. Small Business Confidence Index. This notable resurgence highlights the resilience of small and medium enterprises.
Insights from Business Leaders
Rohit Arora, CEO and co-founder of Biz2Credit, emphasized the resolve of small and medium enterprises. He stated, “Small and medium businesses continue to remain resilient as tariff negotiations remain in limbo.” The anticipated rise in prices due to tariffs has yet to be seen, leading some to believe that many businesses prepared ahead of time by frontloading their inventory.
The Tax Policy Dilemma
Tax policies are becoming a crucial point of concern for small business operators as discussions in Congress remain unresolved regarding the implications of the Big, Beautiful Bill. According to Arora, tax-related uncertainty is significant, particularly since many provisions of the Tax Cuts and Jobs Act from 2017 are still pending confirmation. This creates a challenging environment for long-term planning and stability.
Summary of Findings
The Biz2Credit Small Business Earnings Report serves as a critical tool in understanding the financial health of small businesses across the nation. It assesses data from companies that have applied for funding, offering a real-time glimpse into the economic landscape of small to midsized firms. The report's insights enhance our comprehension of the ongoing developments in the business sector.
Methodology of Data Gathering
Biz2Credit meticulously analyzes various financial metrics within the Small Business Earnings Report. This includes evaluating annual revenue, operating expenses, the age of the business, credit score, the approval rate, and funding success rate. The information is sourced from over 100,000 completed financing applications submitted to Biz2Credit’s digital platform from early 2022 through May 2025.
About Biz2Credit
Founded in 2007, Biz2Credit has played a pivotal role in facilitating access to financing for thousands of businesses. Headquartered in New York City, the company employs more than 800 dedicated professionals, with a significant portion in product development, data science, and engineering. Utilizing advanced data analytics and predictive modeling, Biz2Credit aims to improve decision-making in business credit, thereby fostering long-term economic growth. For more information, visit their website or follow them on various social media platforms.
Media Contact: Brett Holzhauer, (818) 326-1109, brett.holzhauer@biz2credit.com
Frequently Asked Questions
What are the average monthly earnings reported for May?
In May, the average monthly earnings were reported at $49,300.
How much did the average monthly revenue increase?
The average monthly revenue increased by $37,700, reaching $592,600.
What trends are influencing small business growth?
Stable inflation and positive sentiment in business confidence are key factors influencing growth.
Who is the CEO of Biz2Credit?
Rohit Arora is the CEO and co-founder of Biz2Credit.
What is the focus of the Biz2Credit Small Business Earnings Report?
The report focuses on assessing the financial health of small businesses by analyzing funding application data.
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