Why Tampa is One of the Best Places to Start a Business in Florida
Tampa is a rapidly growing startup hub crowned one of the top emerging US tech cities for businesses and workers within the industry. We’re going to explore why Tampa is one of the best places to start a business in Florida by going over the incentives, tech industry talent in the area, and the pros of cons of living in Tampa, so you can decide whether it is the best location for your business.
Pros of Starting a Business in Tampa
When it comes to starting a business in Florida, your business has an array of resources along with a strategic location to ensure you ‘make it’ in Tampa.
Location and Tampa Business Incentives
Tampa offers a strategic location for businesses, especially when trading with Latin America. Not only is the Tampa’s location beneficial for businesses, but so are the business incentives up for grabs. Let’s go through them!
Internationally connected – Tampa has three airports you can choose from, one of which is international to help keep your businesses well connected.
Tax benefits in Tampa - If you’re considering moving your business to and living in Tampa, Florida charges 0% state personal income tax, so you and your employees will have a larger disposable income to work with. In addition to the lack of state personal income tax, your business will be liable to pay 5.5% Florida corporate tax.
Embarc Collective is a startup hub that supports nearly 150 tech startups in Tampa.
Tampa Bay Innovation Center is a program in Tampa that provides mentors, network opportunities, and business plan education to tech businesses.
First Wave Accelerator is another program that aims to help startups build, launch and grow. So far, it has helped startups reach $1 million in revenue or investment.
Relocate Tampa Bay is an organization that specializes in helping new residents settle into the area by offering services for individuals, families, and employees relocating to Tampa Bay.
Tech industry and talent in Tampa
The tech scene in Tampa is one of the main contributors as to why it is quickly becoming one of the best places to start a business in Florida. Having topped US tech hub lists, if you’re business operates within the tech industry, Tampa could be the next stop for you.
Tampa was voted the number one emerging US tech city in 2021 - The one metro Miami couldn't surpass in Forbes list of emerging US tech cities? Tampa. If you’re debating on whether to open an office in Tampa or Miami, if tech is your priority, Tampa may be the best choice for you.
Big companies in Tampa – Notable big tech companies such as JetBridge and cryptocurrency platform Celsius relocated to Tampa recently, with more on the horizon including Pfizer and Genesis Systems. These large companies not only attract investment to the Tampa area, but high-quality talent, a win-win for businesses located there.
Access to tech talent – Tampa is home to over 25% of Florida's tech jobs. LinkedIn proved the Tampa Bay area is a top US destination for relocating tech workers, at number 6. According to LinkedIn data, the Bay area had approximately 128 employees per every 10,000 LinkedIn users relocate to the region between May 2020 and April 2021. For these reasons, Tampa should be an area on staffing agencies radar, when sourcing tech talent within the US for clients.
University Graduate Talent – Tampa is home to the University of Tampa and University of South Florida, famed for its engineering, medical, and technology programs. The steady stream of highly educated graduates hailing from these universities, make Tampa one of the best places to start a business in Florida.
Tech investment in Tampa – High profile investors like Bill Gates and Jeffrey Vinik have invested $3.5 billion in real estate geared toward tech in the Tampa area, signifying that it is an up and coming area for businesses in the US.
High tech salaries – According to the US BLS. the annual mean wage in Tampa was $53,270 for all occupations. If you dive deeper into specific roles and industries within Tampa, average salaries in tech roles are relatively higher. A pro for staffing agencies placing tech talent in the US, and for tech employees seeking higher wages. The average annual wages for popular tech roles in Tampa include:
Computer Systems Analysts - $89,810
Software developers- $104,790
Computer Programmers - $81,140
Database Administrators - $96,660
Pros of Living in Tampa
Cost of living is a lower cost alternative to Miami – If you want to live in Florida but Miami is out of your budget, why not try Tampa where you can stretch your salary a little further? The cost of living in Tampa is 5% less than the US national average, with housing 11% lower. According to payscale, the median monthly rent in Tampa is $1,078 vs $1,699 in Miami. Additionally, buying a home in Miami will set you back $556,157 vs the median home prices in Tampa at, $352,976, considerably cheaper.
Yearlong warm weather – Tampa is relatively close to the equator which provides consistently high temperatures, so if you’re hoping to escape more gloomy areas in the US, a sunny lifestyle is guaranteed in Tampa.
Annual festivals – If you’re after a fun and vibrant lifestyle Tampa has you covered. Tampa is packed with festivals including one of the most popular, Sunset Music Festival, which attracts over 50,000 people.
A top location for sports fans – If you’re a sports fan, you can take your pick on the variety of pro sports played in the area. From football, baseball, and much more you and your employees can cheer on the Tampa Bay Buccaneers or other major teams right on your doorstep. Team activities sorted.
Outdoor lifestyle – If walking is your hobby, you’re in luck in Tampa. Home to the largest sidewalk in the word, Bayshore Boulevard, you can run or walk the 7.25km distance to encounter historic mansions and famous Tampa food trucks along the way. This isn’t even touching on the beautiful beaches on your doorstep.
Cultured food scene – If you are a foodie, you’re in for a treat in Tampa. On top of the popularity of food trucks, did you know the Cuban sandwich is Tampa’s signature sandwich? With all these options, you and your employees won’t be stuck for lunch choices when starting a business in Tampa.
Cons of Starting a Business in Tampa
Limited accommodation – As the population is growing rapidly in Tampa, accommodation supply is struggling to keep up with demand, despite regular construction in the city. For businesses hoping to relocate and find office space quickly, or transfer employees, the lack of accommodation may limit the ability to secure suitable properties.
Salaries are not as high as traditionally popular US cities – Salaries in Miami and New York are reasonably higher than Tampa. However, this may be outweighed by the fact there is no state personal income tax in Florida and lower property costs in Tampa which means wages can go further.
Public transportation not advanced as other major US cities – The rising population in Tampa has contributed towards longer traffic times. As Tampa is missing a rail system, it is challenging to travel to Tampa without a car, or you will be dependent on buses. According to the last available data from TomTom Traffic Index, drivers in Tampa spent an average of 48 hours in traffic in 2021. Within this index, it was scored as the 6th most congested city in the US, tied with New Orleans, Washington, and Atlanta. So, if you’re regularly in a rush to business meetings, living in Tampa will force you to leave plenty of time for your journey.
Tampa Hurricane season – Tampa is prone to hurricanes from June to November annually, which may cause disruption to not only your office, but employees, and opening hours during times of turbulence.
The lightning capital of North America – Summer storms are common in Tampa; it is called the lightning capital for a reason. Again, this may cause disruption to business operations, and with climate change intensifying, may be a major con to opening an office in Tampa.
You’re sure to see an alligator - Florida is home to the second-highest number of alligators in the US, at an estimated number of 1.3 million. Found in near every type of the water in Tampa; if you’re by lakes, ponds, and rivers, you risk encountering an alligator.
Ready to Start a Business in Tampa?
If you’ve weighed up the pros and cons of starting a business in Tampa and consider it one of the best places to start a business in the US, often, the first step is hiring local employees. That’s where PGC come in. As an employer of record, we can compliantly engage and payroll your Tampa employees on your behalf, with or without a local entity. So, all you have to do is focus on growing your business.
Why not schedule a free US market opportunity session with one of our US expansion consultants? You can find out more about the top states to do business in the US, and how you can easily start hiring employees in any of them with our help.
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.