The booming economy has small-business revenue riding high.
Annual gross revenue for small businesses grew by 19.2 percent from January 2018 to January 2019, according to a report from Kabbage, an online small-business lending platform based in Atlanta. The findings were pulled from the Kabbage Small Business Revenue Index, a new tool that draws from more than two million live data connections with Kabbage customers.
One goal for the index, according to Kabbage, is to help businesses compare how their annual gross revenue growth stacks up with the performance of other small companies in the U.S., including those in their own industry and state, according to David Snitkof, Kabbage's head of analytics.
The Index also can serve as another broad measure of the health of U.S. small business and perhaps influence public policy, says Jackson Mueller, associate director at the Center of Financial Markets at the Milken Institute and a member of the Kabbage Index Committee.
"We believe this index can play a part in helping inform decision makers on and off Capitol Hill," he says. "To see the trajectory move up from a revenue perspective is certainly encouraging," he adds.
Kabbage says it counts more than 200,000 businesses as customers. Eighty-three percent of the businesses represented in the Index have median annual gross revenue of $280,000 and fewer than 10 employees, according to the company.
"These are literally mom-and-pop stores, or entire one- or two-person teams coming up with an idea," says Mueller.