Drew Dixon
Florida’s economic climate is ripe for small businesses, according to a new study analyzing the best environments to have a small business in the U.S.
Florida has six of the top 20 best cities to operate a small business, and no other state even comes close to having as many metropolitan areas where entrepreneurs thrive.
CoworkingCafe, a workplace sharing online service, analyzed 136 U.S. cities weighing factors such as gross domestic product, business applications, labor costs and other factors to come up with the ranking. The list placed Miami as the second-best place to have a small business. The South Florida city came in only behind Scottsdale, Arizona.
The variable economic factors used in the ranking system compiled a total score to determine the ranking. Miami scored a 73.37, just behind Scottsdale’s figure of 73.75. CoworkingCafe analysts found Miami just couldn’t be overlooked for its inviting culture for small business around South Beach and beyond.
“The city paves the way in the number of business applications per 100,000 residents with an impressive 5,320. As a result, self-employment is highly prevalent in the area with close to 18% of its workforce owning businesses,” the CoworkingCafe report said.
The one major knock against Miami for small-business owners is the climbing cost of living. But the report said Miami makes up for that in its own way.
“Despite this higher cost, the relatively low labor costs make it financially easier for entrepreneurs to operate their businesses. This combination allows them to invest more in their ventures and seek out new opportunities, making Miami an appealing place for business despite the overall higher living expenses,” the report said.
Orlando came in fourth on the ranking, with a small-business favorability score of 70.39. Tampa placed sixth on the list, as the Gulf Coast hub scored a 70.11 for small-business friendliness. That was followed by Fort Lauderdale at No. 7 with a score of 70.06.
Texas was the only other state with more than one city in the top 10, as Austin was ranked fifth and McAllen ranked ninth.
But Florida wasn’t done, as Cape Coral came in 13th and Jacksonville in 17th.
The Deep South fared well in the overall rankings. Outside of Scottsdale and Boise, Idaho, which was ranked eighth, Southern states dominated much of the top 20.
“When it comes to the best cities for small businesses, the South clearly stands out. With 14 of the top 20 cities hailing from below the Mason-Dixon line, places like Miami, Orlando and Austin are sizzling hot for startups,” the CoworkingCafe analysis concluded.
One comment
Steve Kirn
October 14, 2024 at 4:32 am
Note an underlying set of implications: Miami’s high cost of living is paired with low wages, suggesting that workers are almost certainly struggling and paying a disproportionate price for The city’s ranking. And this is a city with many immigrants. It is a shining example of the reality that immigrants are — in both the near, and certainly the long run — an engine for growth, not a bunch of job-robbing grifters and tax burden as they are often portrayed! Immigrants work long and hard to build new lives and businesses, and are a foundation for US growth and success!