The Small Business Sector in Urban America
Growth and Vitality in 25 Cities
Small businesses are one of the pillars of urban economies, making substantial contributions to economic growth and dynamism. However, the fragility of the small business sector is an ongoing challenge that limits how much it contributes to economic growth in cities. Nine out of ten cities in the United States are losing businesses faster than they are creating them. Understanding the drivers of growth and failure in the small business sector—and the variation of these drivers across cities—is critical to the development of policies that promote small business survival and growth.
This report leverages high-frequency, de-identified financial data from a sample of 290,000 small operating businesses to identify differences and similarities in small business financial outcomes across 25 US cities. A follow-up from the JPMorgan Chase Institute 2018 report on small business growth, vitality, and cash flows, this report provides a lens into the composition and contributions of different types of firms to aggregate revenue growth and exit rates of the small business sector.View the Report Small Business Financial Outcomes in Cities