Florida small business profile
In Florida, small businesses are vital to the financial well-being of the state’s economy. Their contribution is essential for economic growth since they make up almost all employer firms in the state. As entrepreneurs and innovators, small business owners represented a diverse group in 2004 and continued to keep the state’s economy productive. The Small Business Profile provides information on the performance of small businesses in the state using the most current federal data available. This Small Business Profile was prepared by the U.S. Small Business Administration and provides information on the performance of small businesses in the state using the most current federal data available.
Number of Businesses
There were an estimated 1,633,574 small businesses in Florida in 2004. Of the 449,070 firms with employees, an estimated 98.9 percent, or 444,066, were small firms. In 2004, the estimated number of employer businesses increased by 5.4 percent. The number of self-employed persons (including incorporated) increased overall by 6.4 percent, from 961,018 in 2003 to 1,022,276 in 2004. Non-employer businesses numbered 1,189,508 in 2002, an increase of 6.3 percent since 2001, based on the most recent data available.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; U.S. Dept. of Commerce, Census Bureau; U.S. Dept of Labor, Bureau of Labor Statistics.)
In 2002 women-owned firms totaled 437,494, an increase of 30 percent from 1997, and generated $61.6 billion in revenues. Firms owned jointly by women and men numbered 181,048 with revenues of $42.3 billion. Women represented 32.8 percent of the self-employed persons in the state.
(Sources: U.S. Dept. of Labor, Bureau of Labor Statistics; U.S. Dept. of Commerce, Census Bureau.)
In 2002, Hispanic-owned firms numbered 266,828, an increase of 38 percent from 1997. Black-owned firms numbered 102,074, an increase of 71 percent; Asian-owned firms numbered 41,342, an increase of 28 percent; American Indian and Alaska Native-owned firms numbered 10,105, a decrease of 4 percent; and there were 1,798 Native Hawaiian and other Pacific Islander-owned businesses.
(Source: U.S. Dept. of Commerce, Census Bureau.)
There were an estimated 77,754 new employer businesses in 2004, 11.5 percent more than the previous year. Business terminations numbered 54,498 in 2004, a decrease of 3.8 percent. Business bankruptcies decreased by 22.9 percent and totaled 1,183 in 2004.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; Administrative Office of the U.S. Courts; U.S. Dept. of Commerce, Census Bureau.)
Small firms with fewer than 500 employees numbered 366,657 in 2002 and employed 2,856,047 individuals, or 44.9 percent of the state’s non-farm private sector. Net job gains among firms with fewer than 20 employees totaled 76,519, while large firms with 500 or more employees lost 138,529 jobs between 2001 and 2002.
(Source: U.S. Dept. of Commerce, Census Bureau, Statistics of U.S. Businesses.)
Small Business Income
Non-farm proprietors’ income, a partial measure of small business income, increased by 5.6 percent, from $31.3 billion in 2002 to $33.1 billion in 2003.
(Source: U.S. Dept. of Commerce.)
Commercial bank lenders are an important source of small business loans, and small firms usually rely on them for financing. Over the last 10 years the number of banks in Florida has declined. The Office of Advocacy has identified banks in each state that make the most loans to small businesses. This information is available in its banking studies at http://www.sba.gov/advo/research/lending.html.