Miami Is Top City For Small Businesses
According to recent rankings from Biz2Credit, Miami is the top city in the country for starting small businesses, reported CNBC. A study commissioned by Florida’s SBDC found more than half of Miami-Dade County’s (MDC) workforce is employed by small businesses.
To be exact, over 82,000 small businesses employ 53.3 percent of MDC employees. The study also found the number of non-employer establishments rose 55.9 percent in Miami-Dade, which is almost three times the national rate.
Tourism, international trade, financial services and telecommunications are among the industries boosting the city’s economy. Miami was ranked third in the nation in 2018, but claimed the top spot after Biz2Credit considered a variety of local factors including the cost of doing business and tax rates.
It is also less expensive to do business in Florida, so many companies are moving to the state from cities with higher costs. Four out of 10 businesses in Miami-Dade have been open less than five years, reported the Miami Herald.
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There is a downside to the boom, however. While Miami boasts the most people working for themselves, it also boasts lower wages than nation’s average. The median wage in Miami is approx. $47,000, reported the Miami Herald.
According to Jacqueline Bueno Sousa, regional director of the Florida SBDC at FIU, it’s because “not all entrepreneurship and not all small businesses contribute to the economy equally.”
When compared with other major cities, Miami has a disproportionate amount of small businesses that have less than 10 employees.
Despite this, Miami companies averaged $1,198,424 in revenues annually, second only to New York. So while there are still challenges to work on, many like Kairos founder Brian Brackeen lauded the city’s successes.