U.S. Small Business Health Index

December 11, 2023
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U.S. Small Business Health Index

The U.S. Small Business Health Index (SBHI) provides valuable insights into the health of small businesses in the United States. It does so by measuring payment patterns, failure rates, and credit use at both the Metropolitan Statistical Area (MSA) and Industry (SIC) level. The SBHI focuses on active #smallbusinesses with fewer than 100 employees, offering a representative snapshot of the sector.

The index is calculated quarterly and uses 2004 as the base year, assigning an index value of 100. Any value above 100 indicates improvement in business health. The SBHI takes into account both pro-cyclical and counter-cyclical elements, combining them into a single number for simplicity.

The four factors considered in the SBHI are average #credit card utilization, the percentage of #creditcards with outstanding balances that are 61+ days past due, a ratio based on the number of failures in the past 12 months compared to the prior 12 months, and the percentage of delinquent dollars that are 91+ days past due out of all outstanding balances.

By analyzing these factors, the SBHI provides a comprehensive assessment of the overall health and stability of small businesses across the country.


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