Navigating Challenges: The Survival Struggle of Florida’s Small Businesses

Florida’s small business landscape is encountering significant hurdles, as recent findings shed light on the challenges faced by entrepreneurs in the state. According to a study conducted by Capital on Tap, Florida has one of the lowest small business survival rates in the country. After three years, only 56.82% of small businesses remain in operation, and this figure drops further to 44.95% after five years. These statistics highlight the difficulties of sustaining a business in Florida, despite the state’s robust economic growth.

Compounding these survival challenges is the financial strain many small business owners are experiencing. A survey by Alignable revealed that more than half of Florida’s small businesses—54%—were late on rent payments in June 2024. This marked the third consecutive month where rent delinquencies increased, a troubling trend that suggests deepening financial distress within the small business community. Rising interest rates, coupled with higher labor costs and persistent inflation, are among the primary factors contributing to these difficulties.

In response to the financial pressures faced by businesses impacted by the December 2022 freeze, the U.S. Small Business Administration (SBA) has made Economic Injury Disaster Loans (EIDLs) available to small businesses in several Florida counties. These loans are intended to help businesses recover from the economic damage caused by the freeze, offering a lifeline to those struggling to stay afloat.

Together, these challenges—low business survival rates, increasing financial strain, and the need for disaster relief—paint a complex picture of the current state of small businesses in Florida. While opportunities exist, the path to long-term success is fraught with obstacles that require resilience and resourcefulness to overcome.