Small businesses in Florida are crucial to the strength and growth of the local economy, providing new employment opportunities to the local community and serving as the essential building blocks of larger corporations that further bolster the economy. Small business are defined as proprietorships, limited liability companies, or corporations that employ fewer than 500 employees, and according to the U.S. Small Business Administration (abbreviated as the SBA), small business account for as much as 99.7 percent of employer firms, generating 64 percent of new jobs since 1995.
Small business further contribute to economic growth by providing new employment opportunities in local communities, bringing innovation and creativity to an area that may not benefit from employment in larger corporations. Even then, larger businesses often benefit from the presence of smaller business in the same community, as they will often outsource work to those smaller businesses, creating mutually beneficial economic partnerships that work for both businesses involved.
Because small businesses tend to be far more customer-oriented than their larger counterparts, they also tend to be far more adaptable to rapidly changing economic environments. In building a loyal local consumer base, small business are often able to weather economic downturns, as loyal customers will continue to use a locally-owned small business that they know they can trust. Small businesses' smaller revenue streams also often mean that they have less revenue to lose overall than larger corporations.
Thriving locally owned businesses pay higher taxes the more revenue they collect, including local taxes, meaning that their tax dollars benefit the local school system, police department, fire department, and other local community organizations that depend on tax revenues to continue functioning.