The Best States: #5 Texas, #6 Florida

In honor of National Small Business Week, Lendio announced the Top 10 Best States for Small Business Lending. Based on a calculation of several key indicators among thousands of Lendio’s customers, the findings show that not only did demand for small business loans increase significantly in the last year, but business owners borrowed significantly larger amounts to help grow their operations.

The Lone Star and Sunshine States rank No. 5 and No. 6 respectively on the list. Find out why Texas and Florida are prime places for small business to boom. (Read all about the No. 1 and 2 and No. 3 and 4 states here.)

#5 Texas

Coming in at number five on the top 10 best states list, this year marks the Lone Star state’s third consecutive ranking. With an affordable cost of living, little to no regulation for business owners to navigate, and no corporate or individual state income tax, Texas boasts one of the most business-friendly environments in the U.S.

Large corporations like Exxon Mobil, Dell, and AT&T have long called Texas home. But the state’s biggest wins come in the small business sector: 99.8% of Texas businesses are categorized as small, and those businesses employ 45.9% of working people of the state. Texas does have a weakness in the education of its labor force. Only 83% of adults have a high school diploma, the second-lowest percentage of any state. In spite of this, Texas continues to thrive as a premier small business locale.

Texas’s Small Business Statistics

Total number: 2.6 million
Total number of employees: 4.6 million
Percent of Texas businesses: 99.8%
Percent of Texas employees: 45.9%

Top 5 Industries for Small Businesses (by employment):

Other Services
Professional, Scientific, and Technical Services
Construction
Administrative, Support, and Waste Management
Retail Trade

Lendio franchises located in Frisco and Plano are making it easier for Texas’s small businesses to gain access to the funding they need.

Read about how a Texas couple turned their homemade pudding into a recipe for small business success.

#6 Florida

Florida has the fourth-largest GDP in the U.S., fueled mainly by tourism, transportation, and agriculture. Sunshine, beaches, amusement parks, and the Everglades delight millions of visitors every year. The Kennedy Space Center, Cape Canaveral Spaceport, and the Cecil Field Spaceport are big pieces of the Florida economy where aerospace and aviation-related activities account for an impressive $144 billion in revenue annually. The warm, humid climate is ideal for agriculture, and Floridian farmers grow oranges and winter vegetables in massive quantities.

The story of Florida’s economy in the last decade is that of an epic comeback. In 2008, the housing market crash all but paralyzed the state. Home prices sank by a whopping 47%. Showing its resilience, Florida’s economy has been steadily rebounding ever since. Now, with the help of 2.4 million small businesses employing 3.2 million people, the state is holding strong at number six on the top 10 best states list.

Florida’s Small Business Statistics

Total number: 2.4 million
Total number of employees: 3.2 million
Percent of Florida businesses: 99.8%
Percent of Florida employees: 42.8%

Top 5 Industries for Small Businesses (by employment):

Other Services (Except Public Administration)
Professional, Scientific, and Technical Services
Real Estate and Rental and Leasing
Administrative, Support, and Waste Management
Construction

Fun Facts:

• Miami installed the first bank automated teller machine especially for rollerbladers.
• Gatorade was named for the University of Florida Gators where the drink was first developed.
• Key West has the highest average temperature in the U.S.

A Lendio franchise located in Gainesville-Ocala is making it easier for Florida’s small businesses to gain access to the funding they need.

Read about the family hobby that became a booming small business in Florida.