Florida's Small Business Boom
Bottom Line: Ho hum, another year, another record setter for Florida’s economy. Record job creation. Record net migration. Record tourism. Record numbers of higher income earners. Record net worth. And yes, a record number of new businesses. Good news never gets old and in Florida we’ve had a nearly endless supply of it of late. No doubt affordability challenges are real for many, but then again there’s truth to that reality everywhere. What everywhere else doesn’t have is the extent of economic success and opportunity we have had in Florida, and most specifically South Florida.
Earlier this week we learned South Florida had the third highest number of new businesses created over the past year according to an annual report by Yelp. The survey identified 20,572 newly created businesses in the Miami-Fort Lauderdale-West Palm Beach metro over the past year leading to a record total number of businesses in South Florida. While South Florida ranked third for total new business growth you can put an asterisk next to the two metros ahead of us. New York and Los Angeles. The two largest metros in the country were one and two for new small businesses as a byproduct of their economies having been extensively locked down for much of the prior two years. The sheer size of the communities along with the high number of lost companies led to the small business equivalent of a dead cat bounce. Both metros still have far fewer companies in operation today as compared to prior to the pandemic.
Given Florida’s best-in-the country economic growth last year and continued economic success often leading the country in most categories generally, it can be easy to overlook the profound impact of what’s happening. Opening a new business is a big deal. A huge life decision for those involved. And yet in just three South Florida counties, we’ve been averaging greater than 56 new businesses per day over the past year plus. In fact, since the 4th quarter of 2014, we've led the country in new business applications every quarter with the exception of last year’s pandemic rebound in NYC and LA. Also, 80% of our small businesses have survived beyond their first year in operation, which is also among the best rates in the country. Florida’s economic success is a great story generally, however it’s small business story might just be the best of all. Or at least the best of little-known stories. And no, I’m not tired of Florida winning.