Analysis: Florida is a Sizzling Spot For the Self Employed, But Do Your Homework Before Taking That Plunge

When it comes to doing what you want, cities in Florida seemingly rock with people working for themselves.

Of the top 10 cities nationally with the most self-employed, six are in the Sunshine State, based on U.S. Census information compiled by the Chamber of Commerce, which dubs itself a “digital resource for small business owners and entrepreneurs.”

All told, the analysis revealed there are roughly 16 million self-employed workers among the more than 156 million U.S. workers. The figure for the self-employed has increased by almost one million — 988,418 — since 2016. The business advocacy group examined Census data in 170 of the nation’s most populated cities to conclude which cities have the highest percentage of self-employed in the workforce.

Entrepreneurship has been booming in recent years, including during the COVID-19 pandemic that struck more than three years ago. Many people like being their own boss as it can bring more flexible working hours, potentially more income, and other perks.

Moreover, women of color, including Black women owners, have been among the fastest growing segment of entrepreneurs in recent years and still are focused on that path. New research showed that 61% of female small business owners “worked a day job so they could save enough cash to open their business.” That figure was even greater for women of color at 71%.

Other key findings from the chamber report showed that the top three cities with the highest percentage of self-employed workers are in the Miami area. The areas are Hialeah, Miami, and Hollywood. It was disclosed that the average income nationally for self-employed workers is $54,232, some $107 less than the nationwide median income for all workers at $54,339.

At the same time, people considering self-employment should be mindful that taking the plunge could come with challenges and risks. For instance, many may experience erratic or no guaranteed income versus collecting regular pay from a salaried job.

Other potential setbacks could mean paying higher taxes, spending more time building a steady clientele to cater to, and being unable to have someone to cover your work while you are off.

Further, a major obstacle to self-employment could be not gaining the benefits that other jobs provide. For instance, health insurance for the self-employed can be costly and difficult to find. Plus, self-employment may also not provide pay for holidays, sick days, or vacations. Another hurdle could be a lack of access to a 401(k) contribution or match to help establish or build retirement savings.

Check out more discoveries from the chamber report here.