Industry classification is a pervasive challenge for financial institutions that serve small businesses. For far too long, industry classification products have yielded high inaccuracy rates, classifications too general for effective risk evaluation, and categorizations that don’t extend to modern business models.
Enigma outperforms incumbent providers in accurately identifying the correct industries and sub-industries for small businesses. Our industry classification covers contemporary business models, such as hybrid online and brick-and-mortar companies, while providing details about how a business operates.
How to use this data
Knowing a company’s business model is essential for effective credit risk evaluation. Industry classification contextualizes all other information about a company. Deeper granularity about how a company makes money is crucial, especially given the economic realities of COVID-19. Financial institutions need to know more than whether a business is a retail store; they need to know what type of retail, whether that business operates online, in physical locations, or both.
Sample API output
"enigma_industry": "Construction and Engineering",
"industry_group": "Capital Goods",
"industry": "Construction and Engineering",
"sub_industry": Construction and Engineering,
Industry is the cornerstone of SMB data because it helps put in context everything else you know about a business. Almost any attribute - size, revenue, online presence, etc - is impacted by the industry a business is in.