Florida ranks in the middle of the group in terms of survival rates five years after launch. According to the SBA, there are about 2.8 million small businesses in Florida. They constitute 99.8% of all enterprises in the state and employ 3.6 million workers, approximately 41.1% of the state's private sector labor force. Then, with the right systems and people, you can focus on growing your business, not doing everything yourself.
The Federal Reserve estimates that, based on historical trends, approximately half of these closures will be permanent, but it will not yet be able to say how many companies died from the COVID-19 pandemic over a few years. AdvisorSmith examined survival rates by industry over the past five years to find industries where companies are most and least likely to fail. For businesses with physical locations, real estate costs vary widely, so it's important to research local markets. To avoid business failure after start-up, business owners must also be aware of their market and the changing needs of customers on an ongoing basis.
The information industry has the highest failure rate nationwide, with 25% of these companies failing in the first year. This is an easy hole for entrepreneurs to find, so cash flow problems play at least a part in 82% of small business closures. Enterprise Florida is a public-private partnership that provides research on Florida's business growth opportunities along with news focused on developing and advocating for trade and exports. We calculated each state's business failure rates for each of the past five years and also took a weighted average approach to ranking states based on survival and failure rates.
If you don't, you won't look professional and lose business to competitors who at least have profiles on popular social media sites. A lot of variables come into play when determining which states are becoming less hospitable to small business owners and entrepreneurs. One example is the Small Business Development Center (SBDC) program, which partners with local universities and community colleges to help businesses in their areas. Florida can afford to keep tax rates low because it depends on the hospitality tax revenues of its tourism businesses, including theme parks, hotels and resorts.