Business owners in Florida face many of the same challenges as their counterparts across the U.S. do. About a quarter of small business owners in the state reported this year that inflation is their biggest problem. It affects the cost of the materials and products they buy – and therefore the cost of the products and services they provide. Further, if their customers are changing their spending habits because of inflation, that can affect what they spend their money on.
Labor shortages are another challenge that’s not unique to doing business in Florida. More specifically, the challenge is a shortage of qualified applicants. A whopping 86% of small business owners cited this as an issue for them this year. A labor shortage only makes the effect of inflation worse. It’s too early to know just how much the incoming administration’s planned deportation actions will have on Florida’s labor force next year.
The economic impact of Hurricanes Helene and Milton
This year, Florida faced historic damage and loss from back-to-back hurricanes, Helene and Milton. They leveled some businesses and caused extensive and costly damage to many others – in addition to many business owners’ and employees’ homes.
The hurricanes also cut into the tourist industry. That, in turn, meant a sharp downturn in business for hotels and other hospitality venues as well as restaurants, stores and a multitude of other businesses. These effects are not short-term ones. For example, in the year after Hurricane Ian hit the Fort Myers area in the fall of 2022, the amount of money brought in by tourism dropped by 30%.
Even for businesses that are able to continue operations after a hurricane or other severe weather event, the effect of the larger community can lead to significant losses. People in the area who have lost their workplace and in many cases their homes won’t be able to spend as they previously have been.
Of course, the cost of the most recent hurricanes will likely increase the cost of insuring both residential and commercial properties. However, having the necessary insurance is critical to being able to recover and rebuild after a catastrophic event.
With all of this said, despite challenges, many businesses of all sizes call Florida home. More are starting up every year. There’s no way to predict with certainty what additional challenges may lie ahead. We help businesses dealing with the potential legal implications of all kinds of business challenges. Contact us for a consultation.
