The small business climate in the Sunshine State is looking bright in 2021.
Florida is ranked the No. 3 state nationwide to start a small business this year, according to a study by The Blueprint, a service of the Motley Fool, an investing portal.
The study ranked the best states to consider starting a small business this year, basing their analysis on six factors small business owners must consider when starting a new business: tax climate, consumer spending, rate of new entrepreneurs, business survival rate over five years, labor costs and climate.
Not surprisingly, no states from the Northeast or Midwest, areas that rarely score well on business-friendly surveys, made the top 10. But there was one geographical surprise: Florida was the only state in the top 10 from the Southeast.
Florida’s attractiveness for small businesses is largely based on the state’s tax climate and rate of new entrepreneurs, according to the study. A competitive median annual income also makes Florida a top choice, the study states.
Unfortunately, it’s not all sunshine for small businesses in Florida. Less than half of small businesses (49.5%) will survive five years, according to data from the study. Disasters such as hurricanes and the harsh impact of COVID-19 are additional obstacles Florida entrepreneurs must overcome.