Saul Loeb | AFP | Getty Images The real estate and construction boom, as well as the talent pool, has boosted New York City to the No. 1 spot for starting a small business in the U.S.
For a second year in a row, New York City surpassed Silicon Valley to become the top city for small business, according to Biz2Credit's annual study of the Top Small Business Cities in America.
The Big Apple's dynamism and diverse industry base has helped fuel growth and make it a magnet for entrepreneurs. The city's booming real estate market and construction industry, banking and finance, tourism and technology sectors are major drivers of this trend.
New York City overtook small-business city leader San Jose, California, the hub of Silicon Valley, last year. The California city has the No. 2 spot on the list. While technology companies are thriving in Silicon Valley, the high cost of doing business and the high cost of living is taking a bite out of profits for many small firms. High taxes and commercial rents are a significant drag on small-business owners there.
As a result, the average annual revenue for small businesses in New York City is $1,016,446 compared to $748,529 in San Jose, the Biz2Credit survey revealed.