Florida is a thriving hub for small businesses. There are over 2.5 million small businesses in the state. Over 99% of businesses in Florida are small businesses. These small businesses employ about 40% of all employees in the private sector. Small businesses also create about 75% of new jobs in Florida. These businesses have less than 20 employees, and yet they contribute significantly to the economy and employment quota in Florida.
The ease of business in the state and other factors have contributed to the increase in the number of small businesses in Florida. Small business grants in Florida help small businesses to survive and scale up as needed.
Low tax rate in Florida as a tool for small business growth
Florida has a low tax rate compared to other states, which has helped foster the growth of businesses in the state. In some other states, businesses that receive small business grants are taxed heavily on the grants. But small business grant tax is minimal in Florida.
Small businesses in Florida have lower expenses than some other states
The cost of operating a small business in Florida is lower than states like New York, Los Angeles, San Francisco, and Chicago. So, a small business grant received in Florida will help better than the same grant received in some other big cities. This is one of the reasons why business owners flock to Florida.
Also, small businesses in Florida can afford to hire more employees than some other states, as the minimum wage in Florida is $8.65. Also, Florida does not have state laws on sick leave, severance pay, vacation benefits, and overtime pay. The seasonal tourist economy in Florida also plays a significant boost to businesses there.
Estimated failure rate of small businesses in Florida
The United States Small Business Administration (SBA) projects that only 50% of small businesses in existence opened in 2020 will still exist in 2025. That figure will drop to 33% by 2030. But as some small businesses fail, others open up. The rate at which small businesses open up will counter the rate at which previous ones fail. This will keep up the upward trend of small businesses in existence.
Reasons why small businesses in Florida Fail
One of the key reasons these businesses fail is the lack of small business grants, loans, and other funding sources. But with adjustments being made, hopefully, a lot of businesses will
Another key reason why small businesses in Florida fail is the lack of effective money or finance management. Some of these businesses receive small business grants and do not spend them as efficiently as they should.
Other reasons include lack of management and accounting skills, poor access to mentorship, lack of skilled labor, loss of skilled labor to bigger business establishments, poor inventory management, and inability to scale up effectively.
Future Outlook of Small Businesses in Florida
The number of small businesses in Florida is increasing at a tremendous rate. The numbers might have dropped during the pandemic, but things are set to go back to how they were pre-pandemic. A lot of people have received at least one dose of the coronavirus vaccines with Florida. There are also a significant number of small business grants for businesses in Florida that will help the number of small businesses in the state going forwards.
By 2030, Florida is projected to have 26 million residents, with 4 million people moving in. An extra 500,000 small businesses will be needed to create about 1.2 million new jobs needed for these new residents. So, small businesses will remain a vital hub for economic growth in Florida. Hopefully, the number of small business grants will keep up with the number of new businesses.