Why Miami Is One of the Top Cities for Small Business Growth

It's no secret that Silicon Valley is a Mecca for entrepreneurs. Still, few people know that nearly 80% of startups in that area fail because of a very competitive industry. The founders of tech companies in the life science and high-tech domain are most likely to succeed. If you are starting a business in any other field, perhaps you should consider other industry booming cities in the US, such as Denver, Austin, San Diego, or Miami, instead of going for a long shot. Magic City is one of the best places in Florida for startup companies because it has a strong connection with Latin America and a significant investment influx in the last few years. This popular tourist destination has an impressive startup density, with many rising companies. If you're still not convinced, here are some reasons Miami is one of the top cities for small business growth.

Miami's most successful industries

Miami has booming tourism thanks to pristine beaches, exciting nightlife, and a plethora of attractions. Since the weather is warm and sunny all year round, the vacation season never ends because tourists visit Florida all year round. Thus, a lot of money is spent on restaurants, hotels, transportation, and retail.

In addition, Miami has the most significant concentration of international banks in the US. The rapidly growing banking neighborhood Brickell became a new banking center. Combining the growth opportunities with the city's favorable attitude towards foreigners, construction, money, and diversity, it is no wonder Miami is turning into a financial giant. 

Being the gateway to Latin America, the city's entertainment, media, and telecommunication industries are very popular. Some of the most relevant media centers for the Spanish language like Telemundo, Sony Music Latin, Univision, and Universal Music Latin Entertainment have a base in Miami. This attracts many movie makers, producers, and music video productions to move to the city. At the same time, the proximity to South America makes the city the largest import and export point for the US. And if you find that you love one area more than the other, planning a relocation here is a breeze. Miami has to offer different types of moving services, so with the right movers by your side, you won't have to worry about a thing. 

For the past twenty years, the city port has been the most active cruise port on the planet

The city has low corporate income taxes

Unlike other major hubs in North America, Magic City offers a beneficial tax structure. With a low corporate income tax rate of 5.5%, your business won't suffer. Moreover, Miami is one of the top cities for small business growth because Florida has no inventory tax and unitary taxes. After moving your business here, you can enjoy low property and sale taxes with no local corporate or personal income tax. That means that neither businesses nor individuals have to pay personal income tax. Miami has several Free Trade Zones that are under US Customs check. Thus, if you move merchandise inside these Zones, it is US duty and excise tax-free.

Rising venture capital

In 2021, a significant flow of venture capitalists hit the Miami industry, mainly focusing on Black and Hispanic tech startups. Since the industry has been criticized for neglecting minority founders, the changes in venture capital investment came after the unfortunate event followed by George Floyd's death. As a result, today, many VCs support diversity and provide opportunities for those who were previously overlooked. This progress is most noticeable in Florida and Georgia, with a major increase in the number of deals for minority-run businesses.

Miami attracts many innovative, young companies because it promotes diversity and inclusion

Diversity of the population

Miami is one of the most diverse cities in the US. Due to state taxes, foreigners start companies at higher rates, which support the local economy. These businesses support multiculturalism and inclusion, which brings the best from every culture and motivates the workplace. According to relocation experts from City Movers, it helps that the population in some areas, like Miami-Dade County, has grown over 10% in the past ten years. Here, over half of the residents are foreign-born. Such communities often have the support of diasporas, which makes it easier to reach the attention of foreign investors.

How to grow a business in Miami

To confirm your new business has the potential for success, make sure to create a business plan. You can avoid common entrepreneur mistakes if you commit to research and understand all factors that might influence your company's growth. After determining the legal structure of your startup, you need to register with state, federal, and local governments in Miami so you can receive the necessary licensing. Since small businesses make a significant contribution to local communities, the city also benefits from their success. Unlike big companies, startup firms spend revenues locally and actively participate in civic culture.

That's why, since November 2021, the City of Miami offers Business Assistance Grant Program to assist small profit or non-profit companies that suffered from the COVID-19 pandemic consequences. If you satisfy program requirements, you can get a grant award of 20% of your business's 2019 gross revenue. However, the grant sum doesn't go over $25,000, and your 2019 annual revenue mustn't be over two million dollars.

The secret of any successful company is well-created short term and long-term business plan

Conclusion

Besides Miami, Florida has shown significant growth in startups, with booming entrepreneurship in Orlando and Tampa. However, in the past two years, Miami's premier business climate has climbed top ranks as the best place for a new company. Even though the city is more known for its beaches than its economy, Miami is one of the top cities for small business growth.

Photos used:

https://pixabay.com/photos/city-miami-architecture-skyscraper-574236/

https://www.pexels.com/photo/drone-shot-of-a-cruise-ship-docked-on-the-port-8574513/

https://www.pexels.com/photo/man-in-blue-denim-jacket-with-sticky-notes-7550305/

https://www.pexels.com/photo/wood-people-coffee-creative-6774944/