Florida’s Entrepreneurial Rankings Drop in 2025

Florida Entrepreneurial Landscape

News Summary

Florida has fallen to the sixth spot for entrepreneurs in 2025, a drop from second place last year. Despite emerging challenges, the state shines in supporting minority-owned businesses. Reports highlight a decline in educated individuals moving to Florida. Meanwhile, it retains its position as the best state for minority entrepreneurs, particularly among Hispanic and Black business owners. The local small business environment continues to thrive, with Miami ranking as one of the top cities for small business operations.

Florida’s Entrepreneurial Landscape Gets Mixed Reviews in 2025

In sunny Florida, a new report has placed the state as the sixth-best spot for entrepreneurs in 2025, according to a study by a research firm. This is quite a drop from the impressive second place it held just last year. While Florida continues to shine in various entrepreneurial aspects, particularly for minority-owned businesses, there are emerging challenges that need addressing.

What Changed in the Rankings?

The report analyzed a treasure trove of data from various government agencies, ranking Florida based on several categories that are crucial for business creation and growth. Last year, the state saw a booming trend where 430,000 new businesses were launched every month across the U.S. This represents a fantastic 50% increase since 2019. However, Florida’s drop in the rankings is partly blamed on a slowdown in the number of educated individuals moving to the state. In 2023, around 68,050 fewer educated adults packed their bags for Florida compared to the year before. That kind of decrease might raise some eyebrows.

Who’s Leading the Entrepreneurial Race?

In a friendly rivalry, Washington State has claimed the top spot in the entrepreneurial world, boasting a remarkable business growth of 110.8% year-over-year. The state is also enjoying the benefits of relatively low inflation and the absence of a corporate income tax. Florida isn’t alone in the struggle; Texas, Maine, Nevada, and Oregon rounded out the top five spots, while Alabama was seated at the bottom of the ranking.

The Silver Lining: Leading in Minority-Owned Businesses

Spotlight on Hispanic Entrepreneurs

Florida is also making waves for Hispanic entrepreneurs. Reports have identified it as a highly favorable state for Hispanic business owners, with Pembroke Pines shining the brightest. This city boasts about 30.5% of its businesses being Hispanic-owned. With its low corporate tax rate, it’s no surprise that many are finding their way to business success here. Not to be outdone, Orlando and Fort Lauderdale are also receiving accolades, ranking second and third for the best cities for Hispanic entrepreneurs. Miami may rank fifth, but it faces challenges, namely low purchasing power among its Hispanic populace.

Small Business Support on the Rise

As if that wasn’t enough, a study pinpointed Florida as home to six of the top 20 cities in the U.S. for small business operations. Miami stood tall in this ranking as the second-best city, narrowly missing out on the top spot held by Scottsdale, Arizona. With a whopping close to 18% of Miami’s workforce owning businesses, the entrepreneurial spirit is undeniably alive and kicking.

Where Do We Go from Here?

The findings underscore the South’s reputation as a hotbed for startups, with 14 out of the top 20 cities located in Southern states. Notably, the role of immigrants in fostering this entrepreneurial culture cannot be overlooked, as their contributions are vital for the business landscape in Florida.

While Florida may have fallen in overall rankings for entrepreneurs, its vibrant communities of minority business owners and a blossoming small business environment offer a silver lining that keeps the state optimistic about its entrepreneurial future.