Small Business Profile: Florida

Small businesses are the prime driver of Florida’s economic growth according to the U.S. Small Business Administration’s (SBA) Office of Advocacy. In concluding that small business owners were leaders in the State’s economy, the report noted that those owned and operated by women and minorities had made a significant contribution to the totals.
The most current data indicates that there were 1,540,500 small businesses in operation in Florida. Of these, firms with less than 20 employees created 130,000 new jobs and firms having 20 and 500 employees created 144,000. “These new jobs represent real people who can own homes, buy groceries, and pay sales taxes,” said Todd Kocourek, President and CEO of Florida First Capital Finance Corporation (FFCFC), “and, as the businesses they work for need more space to accommodate more employees, our product (the SBA 504) can be the only cash-wise way to finance the expansion.”
The 2001 Census showed that the largest business type in the state were professional, scientific and technical firms numbering 50,320. There were 45,451 retailers, 35,290 healthcare and social assistance firms; 21,590 accommodation and food service providers; 26,470 wholesalers and 14,510 manufacturers.
“We estimate that approximately 108,000 (7%) of Florida’s small businesses are planning a business expansion that would fit the 504 profile,” said FFCFC Senior Vice President Jim Taylor. “Considering that only 605 were authorized within the state last year, there are many, many more out there that could use a low cost, low down payment real estate or heavy equipment purchase loan.”
He concluded, “Bankers and lenders are key to the development of the 504 and we are proud of our proven ability to market the 504 in an aggressive and timely manner anywhere the state.”
While the number of small businesses has increased significantly year by year, the number of banks in Florida has declined from 344 in 1995 to 262 in 2003. Interestingly, the SBA Advocacy Office identifies banks in each state that make the most loans to small business. The information is available through office’s website.

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