News Summary
Florida has recently ranked third in the U.S. for new business applications, showcasing a significant increase in entrepreneurship. The state reported 2,714 new businesses per 100,000 residents, trailing only Wyoming and Delaware. This surge aligns with a broader trend of 21 million new businesses emerging across the country in the past four years, with various factors such as low living costs and the recent CHOICE Act contributing to Florida’s appeal as a business-friendly environment. The legislation aims to attract more businesses, particularly in technology, while addressing employment laws.
Florida ranks third in the nation for new business applications, as reported by a recent analysis from Switch on Business using 2024 U.S. Census Bureau data. The findings indicate that Florida is experiencing a significant surge in entrepreneurship, with 2,714 new businesses per 100,000 residents. Only Wyoming and Delaware surpassed Florida, with rates of 10,133 and 5,484 new businesses per 100,000 residents, respectively. West Virginia had the lowest ranking, with only 855 new businesses per 100,000 residents.
This boost in business applications aligns with a broader trend across the United States, where approximately 21 million new businesses have been established over the past four years. This surge represents a growth rate of over 90% compared to pre-pandemic levels. During this time, the Small Business Administration (SBA) provided over $450 billion in loans and grants to support these ventures. Notably, in 2023, it was reported that around 1.8 million of the 5.5 million new businesses had expressed plans to hire, indicating a refreshing return of job creation amidst an evolving economic landscape.
Innovation is viewed as a key driver of this entrepreneurial boom, particularly during the pandemic. The rapid adaptation to new circumstances has encouraged many aspiring business owners to turn their ideas into reality. Furthermore, factors such as Florida’s relatively low cost of living and exemption from state income tax have made it an attractive location for new business ventures. Recent legislative developments in the state, particularly in relation to employment laws, may further bolster this trend.
In 2023, Florida enacted the CHOICE Act, which empowers employers to enforce noncompete agreements under specific circumstances. This legislation went into effect on July 1 and pertains to employees earning more than double the average wage in their county. It has extended the duration of noncompete agreements from two to four years, restricting high-earning employees from working for competitors within designated geographic areas.
Critics of the CHOICE Act have raised concerns about its potential to hinder worker mobility and its implications for employee rights. The law does not affect healthcare workers or those whose earnings fall below the specified threshold, but it does simplify the enforcement process for employers. Under the new law, if an employee is accused of violating a noncompete agreement, courts are required to issue preliminary injunctions, making it more difficult for staff to contest enforcement.
Moreover, the Act mandates that employers inform candidates of their rights regarding noncompete clauses and grants them a seven-day review period to seek legal counsel before signing such agreements. Also noteworthy is the “garden leave” provision, allowing employers to place an employee on paid leave for as long as four years, during which time the employee cannot resign or look for other work without further approval.
Governance around this new legislation was highlighted when Governor Ron DeSantis allowed the CHOICE Act to become law without his signature, following ratification by both the Florida Senate and House. The passage of this law is anticipated to attract additional businesses, especially within the technology sector, signaling a continued focus on innovation and competitiveness in Florida’s economy.
Florida is not only ranked fourth in the U.S. for small business growth but also boasts a gross state product estimated at $1.4 trillion as of 2025, positioning it as the 14th largest economy worldwide. The state actively supports entrepreneurship through various business incubators and accelerators, particularly aimed at tech startups, as it seeks to maintain its status as a thriving hub for new business creation.
Furthermore, the legislation is seen as a means to reduce red tape and provide various tax incentives for companies considering relocation to or establishing operations in Florida. Legislative findings suggest that enhanced predictability in contract enforcement could stimulate further investment in the state, indicating a positive outlook for Florida’s economic future.
Deeper Dive: News & Info About This Topic
- Gulfshore Business: Florida Choice Act Noncompete Law
- Business.com: Why Companies Are Moving to Florida
- Business Observer: Florida New Business Formations
- Wikipedia: Florida
- JD Supra: Will Florida’s New Non-Compete Bill
