Florida’s most populated cities ranked among the best in the nation for starting a new business. Results from a recent study conducted by Clever, a real estate data company, ranked Miami as the 2nd-best place to start a business, just behind Atlanta. Orlando ranked 3rd, Tampa ranked 4th and Jacksonville marked the fourth Florida city in the top 10, ranking 8th.
According to the study, Miami ranks No. 1 for business applications filed in the past five years, with 35.3 per 1,000 residents. That’s nearly 2.5x more than the 14.5 applications filed in the average city.
“Business has boomed in Miami over the past five years, and it doesn’t appear to be slowing down anytime soon,” Clever’s study noted. “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 proliferation of new businesses has led to impressive job growth, which increased at a rate (3%) nearly 2x faster than the national average (1.7%) over the past 12 months.”
The study attributed Miami’s exceptional business ranking to growth in venture capital. Startups based in the Sunshine State received nearly $3 billion in funding last year, with Miami businesses earning the most among all Florida cities with $1.9 billion. That’s 4x more venture capital than the average city receives ($475 million).
Miami residents are clearly interested in financing options, ranking No. 3 in Google search volume for “business loans” and No. 5 for “business financing.”
Orlando’s ranking was credited to its 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%).
“With year-round warm weather, world-renowned theme parks, and acclaimed dining options, Orlando businesses should have no trouble attracting local and out-of-state talent,” the study noted. “In fact, U.S. News & World Report ranks Orlando as the 10th-best place to live overall and the 11th-best city for quality of life.”
Tampa cracked the list of top 15 startup cities for the second time — rising from No. 6 in 2022. Business costs in Tampa are low because of friendly tax laws. Tampa has the added benefit of an affordable workforce, with the average worker earning $60,091 a year — about 15% less than the studied-city average ($70,443).
“From beautiful beaches to an affordable cost of living, Tampa has a lot to offer local employees. U.S. News & World Report ranked it the No. 5 best place to live overall and the No. 11 best place to live for a high quality of life.”
Tampa residents scored 76 out of 100 in Clever’s passion metric, which measures how often locals search Google for business-related terms. 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.
Tampa secured nearly $395 million in venture capital funding in 2023, which is the second-highest amount among Florida’s four most-populous cities. Clever’s study summary predicts that number is likely to increase with Wall Street investor Cathie Wood’s recent settlement in the Tampa area. The relocation of her $60 billion investment firm is a resounding endorsement of Tampa’s ability to nurture small businesses.
Jacksonville’s job growth rate (3.8%) is more than double the national average (1.7%). In 2023, Jacksonville’s metro area had the fastest job growth among all 50 cities studied.
