Austin Has Most Firms Reaching $1M In Revenues Across U.S.

AUSTIN, TX — The prosperous capital city just added another feather in its municipal cap: A new study ranks the city No. 1 among U.S. cities with the largest increase in businesses generating million-dollar revenues.

LendingTree analysts compared the number of million-dollar, privately owned businesses in 2014 with those in 2016 (the most recent year for which data is available) to find the cities where owners are most successful at getting to the million-dollar in revenue mark. Austin saw the largest jump in million-dollar businesses.

• Austin, Texas topped the list with a 15.1 percent increase in privately held companies surpassing $1 million in revenue between 2014 and 2016.
• The number of Austin firms surpassing the $1 million revenue mark rose by 1,857.

Many of these million-dollar firms, researchers explained, likely remain in the small business category, based on the U.S. Small Business Administration’s size standards. Revenue limits for small businesses range from $750,000 to $38.5 million, analysts added, depending on the industry in which the company operates.

"Although Silicon Valley and other Bay Area cities in California are home to some of the largest companies, more unexpected metros had the most private businesses jump into the million-dollar range," analysts wrote.

One of those surprises raising analysts' eyebrows, presumably, was Austin. Here's how they summarized the local dynamics:

"Austin’s small business growth and entrepreneurship have contributed to an overall healthy business climate in the metro area. And the unemployment rate in Austin — at 2.3% — is among the lowest in the country. Some of the top employers in Austin include major tech companies like Dell, IBM, Apple and Amazon. But accompanying population growth has led to issues of affordability and equity in the community, which city leaders will likely need to address as Austin continues to grow as a business hub."

See the full analysis here: Cities With the Biggest Jump in Million-Dollar Businesses.