Florida scores 4 cities in Top 10 major U.S. markets for startup businesses

Four Florida cities were ranked among the best for startup businesses in the U.S.

When it comes to starting a business in the United States, Florida is fertile ground, as four cities from the Sunshine State are ranked in the Top 10 among the 50 largest cities in the country for startup business environments.

Clever Real Estate realty analytics company published the results of a new study on the best cities to start a business. Florida is very friendly to entrepreneurs and business startups, as Miami, Orlando, Tampa and Jacksonville all ranked in the Top 10.

Miami was ranked No. 2 on the list, only behind Atlanta. Immediately behind Miami were Orlando and Tampa coming in third and fourth, respectively. Jacksonville was ranked No. 8 on the list.

Clever Real Estate used data from the U.S. Census Bureau, the Bureau of Labor Statistics, the Bureau of Economic Analysis and other factors to determine its ranking.

While Miami was ranked No. 2 overall on the list, it was the top city to generate applications for initiating a business in recent years. “Miami ranks No. 1 for business applications filed in the past five years, with 35.3 per 1,000 residents. That’s nearly 2.5 times more than the 14.5 applications filed in the average city,” the repot reads.

While that’s impressive for the past half decade, the study was equally bullish on Miami’s startup atmosphere going forward.

“Business has boomed in Miami over the past five years, and it doesn’t appear to be slowing down anytime soon. In addition to having the most business applications filed in that time frame, Miami also ranked No. 1 for business applications filed last year, with a whopping 40.9 per 1,000 residents,” the report concluded.

Orlando drew similar praise for being so friendly to business startups.

“The city (Orlando) boasts a relatively low cost of doing business. Labor costs, for example, are the second-most affordable among all cities studied. The average Orlando employee earns an annual income of $53,959, which is 23% lower than the studied-city average ($70,443%).”

The report said Tampa’s attraction of being on Florida’s Gulf Coast is one of the main reasons for people wanting to start a business there. And the report stated it’s no surprise Tampa was a natural fit for entrepreneurs.

“Entrepreneurs and investors believe that a high quality of life will accelerate business growth, and Tampa residents seem eager to launch their own startup. They scored a 76 out of 100 in our passion metric, which measures how often locals search Google for business-related terms,” the report stated.

“What’s more, Tampa residents filed the fourth-most business applications per capita last year. Their 24.5 applications per 1,000 residents is 60% more than the studied-city average of 16.7.”

The report heaped similar praise on Jacksonville’s lure for business startups along Northeast Florida’s coastline.

“In the past five years, Jacksonville residents have filed 18.8 business applications per 1,000 residents — 30% more than the average city (14.5). In 2022, that number rose to 22.3, which is 46% more than the average city (16.7).

“Not only is Jacksonville a great place to start a business, it’s also a great place to live. U.S. News & World Report ranked it the No. 4 best overall place to live and the No. 11 best place to live for a high quality of life,” the report concluded.

Florida also received high marks for the startup environment across the state. The state saw about $3 billion in startup venture capital funding flood in during the past year.

Rhode Island was the worst state in the study, receiving only $46 million in venture capital funding in the past year. Providence, Rhode Island, was ranked No. 50 on the list among the 50 largest cities.

Across the U.S., there were 5.5 million new business applications in 2023, according to the report.