Florida Ranked No. 1 for Startup Success

The Volusia County Council declined to issue a moratorium on building pushed by Council Chair Jeff Brower but the more than seven-and-a-half hour special meeting earlier this month did produce some potentially positive results.

Brower introduced the idea of a moratorium this past November in response to severe flooding in the county in the wake of Hurricanes Ian and Milton. At that time the County Council agreed to hold a special meeting in January 2025 to discuss the issue. The meeting, held in the county’s Thomas C. Kelly Administration Center in DeLand, attracted an overflow crowd of residents with 87 speakers signing up to address lawmakers.

The first half of the meeting was devoted to staff presentations on stormwater management issues and legal questions surrounding the issuance of a moratorium on development.

“There are multiple variables about why we flood, and stormwater management is one of those,” said County Public Works Director Ben Bartlett.

Bartlett said the perception many residents have that the kind of flooding seen in the county recently is something new is correct.

“There’s not a stormwater management system in this county able to handle a rain event of more than 11 inches,” he said. “We’re seeing an increased amount of these occurrences.”

In addition to heavy rain events such as hurricanes, Bartlett said there has been an increase in the average annual rainfall in the region which also contributes to flooding problems. He said from 2006 to 2016 the county had below average rainfall, but since then “you can see the numbers jump,” which affects the groundwater table.

Bartlett said building code changes and new design standards are ways to combat the flooding issue.

Clay Ervin, director of growth and resource management, reviewed stormwater permitting and regulations, saying the county will have new stormwater regulations coming into effect this year.

On the legal front, Senior Assistant County Attorney Paola Soria said the “fundamental question” in issuing a development moratorium is it needs to be reasonable in scope and duration.

“There is no set rule of how long a moratorium can last,” he said. “You can definitely do it in the unincorporated areas of the county, however, the (county) charter does not support the issuance of a moratorium in the incorporated cities.”

During the public comment period, residents and representatives of a variety of community groups spoke for and against a moratorium,

Mike Disher, town manager of Ponce Inlet, said since 2020 the Town Council has issued a resolution that declared flooding and resiliency to be issues that needed to be addressed in the community.

“We want to make sure we are on the same page with you as you move forward with these new initiatives and new regulations,” he told the County Council. “We want to partner with you.”

Bella Schwarts, a student at DeLand High School,l told the Council she had a petition signed by more than 2,000 students and residents to end development.

“I did not encounter a single person who opposed a building moratorium,” she said. “Teenagers are still the most powerful group because we are the future of this county.”

Representatives of the business community also spoke at the meeting, including David Robinson, director of advocacy at the Daytona Regional Chamber of Commerce.

“We understand the difficulties of the discussion today,” he said. “We do believe that those who have experienced flooding need attention and need it immediately.”

Robinson warned that a development moratorium would have negative impacts.

“It is important to remember that a temporary prohibition on development through a moratorium will have significant consequences for our region, impacting even those who are not experiencing flooding. A moratorium will hinder economic growth, disrupt ongoing projects and create uncertainty for businesses and developers.”

Speaking for the Volusia Building Industries Association, immediate past president Tony Dinizo said the organization has been working to find solutions to the flooding issues. He said one key way to address the problem is to establish a Stormwater Roundtable to provide a space for dialogue.

“This initiative is not just about talking, it is about taking action,” he said. “We’re not asking for a halt to progress, but for a collective commitment to thoughtful and sustainable growth.”

Two Volusia County municipalities, New Smyrna Beach and Edgewater, have already instituted development moratoria.

At the same time of the County Council special meeting, New Smyrna Beach city commissioners approved an extension of a six-month moratorium on development of the Venetian Bay Phase II project.

Earlier this month the Edgewater City Council approved the Florida Shores Drainage Basin Moratorium and a citywide moratorium that will be imposed on the consideration of annexations, rezonings, comprehensive plan amendments, site plans, preliminary plats and final plats.

When the discussion returned to the County Council, Brower reiterated his reasons for seeking a development moratorium, saying the specific purpose of the measure was to find solutions to the current flooding issues.

“I am proposing (this) for the purpose of making changes to the way we are developing,” he said. “Continuing to add more flooding is a recipe for financial ruin for our cities, for our county and already for some of our residents.”

While saying he was opposed to a moratorium, Councilmember Troy Kent offered several possible solutions to the flooding issues including banning building on wetlands, not paying into a wetlands mitigation bank, clearing county and city canals, purchasing low-lying homes and land that flood, discussing county lands near flood areas that can be used to move water into retention ponds and having conversations with municipalities about construction of apartment complexes.

Expressing his opposition to the moratorium idea, Councilmember David Santiago made a motion to direct county staff to bring back to the County Council more information to incorporate Kent’s ideas into formal ordinances and regulations.

Kent made a motion of his own supporting a suggestion made by Brower to direct staff to study the feasibility of not allowing land to be raised for development, which can lead to flooding problems on adjacent properties and neighborhoods.

Both motions passed unanimously. The County Council tentatively scheduled a special meeting Feb. 11 to discuss stormwater management and related issues including the recommendations from Kent.

Realtors say the three most important things when buying property are “location, location, location.” But entrepreneurs thinking about starting a business should also be focused on where they plan to plant the seeds for success and Florida should be at the top of their list, according to a report from personal finance company WalletHub.

“Florida is the best state for starting a business in 2025, boasting the second-most startups per capita and the highest percentage of adults who engage in entrepreneurship,” the report said. “The number of small businesses in the state grew by nearly 16% between 2016 and 2022, the fourth-highest percentage in the country.”

The WalletHub compared 25 key indicators of success in all 50 states from financing accessibility to labor costs and office space availability. Florida topped the list, followed by Georgia, Utah, Texas and Idaho rounding out the Top 5.

The results came as no surprise to local economic development professionals, including Scott Maynard, senior vice president of economic development and public policy at the St. Johns County Chamber of Commerce.

“It always depends on the business, but St. Johns County has a tremendous draw for new residents,” he said. “We boast the No. 1 school district in the state as well as being voted the healthiest county in the state. St. Johns has a highly educated population and very low unemployment.”

Maynard said the availability of incentives to attract new business development can be an important part of success for entrepreneurs and the community as a whole.

“Every opportunity must be vetted and evaluated, but if the return on investment is there it is a good investment,” he said. “The other driving issue is we are in constant competition with other states to attract new businesses, and many of those are offering large incentives. We need to focus on our target markets and be aggressive in recruiting quality opportunities for our residents.”

Maynard said starting a business is only the beginning, and the St. Johns Chamber offers several programs and services to help startups as well as existing businesses succeed.

“Not only do we want new businesses to start, but we really want them to succeed,” he said. “The Chamber has a program called Pitch Factory that offers a seven-week program on starting a new business. We also work with the Small Business Development Center at the University of North Florida, which is a tremendous resource for entrepreneurs.”

In Palm Coast, Economic Development Manager Craig McKinney the WalletHub report confirms the growth potential for the state as a whole as well as in the region.

“Florida’s tax system ranks fourth overall on the Tax Foundation’s 2025 State Tax Competitiveness Index,” he said. “Additionally, Florida’s 0% personal income tax and 10th place ranking for lowest corporate taxes is highly attractive to individuals and businesses alike.”

Despite the conventional wisdom that the Sunshine State is a place just for retirees to enjoy their golden years, McKinney said workforce availability is a plus in the state. 

“WalletHub also noted that the working-age population (ages 16-64) is growing faster in Florida than in all but six other states,” he said. “This is a vital asset to companies looking for states with workforce availability.”

In addition, Palm Coast has the advantage of location and amenities to attract business development.

“Our strategic location on I-95 in northeast Florida offers a strategic advantage for all businesses, regardless of the industry,” he said. “Add that to an exceptionally high quality of life with 12 beautiful parks and over 130 miles of connecting trails and one of the longest continuous stretches of (State Road) A1A where drivers can enjoy uninterrupted views of the Atlantic Ocean, both are assets that sets Palm Coast apart.”

In Volusia County, Daytona Regional Chamber of Commerce President and CEO Nancy Keefer said quality of life combined with a business-friendly environment makes the area attractive for entrepreneurs looking to start a new business.

“The Daytona Beach region offers coastal living at an affordable price,” she said. “For businesses, this means that the quality of life is attractive to recruit workers and provide a great work, live and play environment.

Favorable tax policies also are a boon for startups and make Florida affordable for business growth, according to Keefer.

“A state with no income tax is attractive to companies and Florida is considered a tax-friendly state,” she said. “Sales tax is generated from a strong hospitality and tourism presence thereby spreading the revenue across a larger demographic that helps fund services, parks and amenities to name a few, keeping residential taxes fairly low in comparison to most other areas.”

Keefer said organizations and governments in Volusia County offer a range of programs and services to help businesses succeed, which only adds to the state’s appeal as a place to do business.

“With our universities and specifically, the number of incubators and support agencies working collaboratively to provide support to entrepreneurs and new startups, it’s very attractive to locate in the Daytona Beach, Volusia County area,” she said. “Volusia County Economic Development also leads a community stakeholder collaboration hub, Volusia Business Resources, to assist with businesses at any stage of their business. Their resource directory combines access to all partners in economic and business development making it easy to connect.

Keefer said the Chamber also offers services tailored to the needs of all types of businesses.

“Networking is still one of the most often used benefits of a chamber of commerce,” she said. “Entrepreneurs need a space to collaborate, and access to professionals who can guide them to success. We like to provide unique and customized approaches for entrepreneurs as each business is different and often in different stages of their business journey. Our new office space has also been attractive to startup businesses as well as established businesses with ample collaboration and gathering space for small- and medium-sized meetings.”