SUMMER EDITION 2014 - Florida Department of Financial Services

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Small businesses are the backbone of Florida's economy, which is why we are focused on cultivating .... sector and profe
SUMMER EDITION 2014

MISSION To provide a one-stop-shop for the latest news and valuable insight on Florida's economy and financial health

RESOURCES Chief Financial Officer Jeff Atwater understands the importance of small businesses to Florida’s economic landscape and he is dedicated to providing information and resources to help them remain strong and continue to grow.

PARTNERS Florida’s Bottom Line is produced by the Florida Department of Financial Services in association with:

www.MyFloridaCFO.com

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www.MyFloridaCFO.com For daily Florida economic updates, please visit MyFloridaCFO.com/FloridaBottomline

CFO LETTER Dear Fellow Floridians: Small businesses are the backbone of Florida’s economy, which is why we are focused on cultivating an environment where they can continue to thrive. Florida is home to 2.3 million small businesses which constitute nearly 99 percent of our state’s employers. These businesses are truly the heart of Florida’s economic lifeblood, employing one-in-every three working Floridians and creating nearly two-thirds of net new private sector jobs statewide. This edition of Florida’s Bottom Line highlights why Florida’s small businesses must continue to grow, prosper and remain in our state for our economy to thrive. Inside, you will find keen insight from small business experts as well as a wide array of helpful resources for your small business. Running a small business is a daunting proposition. Figuring out how to keep the doors open and make payroll can be difficult enough, not to mention the extra burdens added by government. For many small business owners, the term “work-life balance” is simply not in their vocabulary. But despite all of the challenges and risks, small business owners persevere, and our state’s economy is better for it. These heroes of Florida give reassure me that our future is bright. By providing a business-friendly and stable economic environment, centered on removing excessive government regulation and fostering the entrepreneurial spirit, Florida can help these businesses continue to flourish and expand, which will create jobs in our communities and strengthen the state’s economy. I want to thank each and every small business owner for their dedication to making a meaningful life for their families through the creation of outstanding and valued products and services for the people of our state. I will remain committed to nurturing Florida’s small business community and encouraging the entrepreneurial spirit in our state. Sincerely,

Jeff Atwater Chief Financial Officer State of Florida

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INSIDE STORIES Florida's Economy SEE PAGE 1 3 Questions with… Michael Myhre SEE PAGE 3 State & Nation SEE PAGE 4 Science & Technology: 3D Printing SEE PAGE 5 Business & Finance: Startups SEE PAGE 6 Consumer Corner: Financial Literacy SEE PAGE 7 Small Business Resources SEE PAGE 8

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FLORIDA'S BOTTOM LINE

JOBS ANNUAL GROWTH (Private Sector Jobs)

FL

NY

TX

US

3.6%

1.6%

3.6%

2.1%

CA 2.7%

As of June 2014 Source: Bureau of Labor Statistics

HOUSING $300,000

Median Sales Price of Existing Home

$185,000

35,000

New Housing Starts

30,000

$250,000

Median Sales Price

25,000

$200,000

20,000

Annual Growth in New Housing Starts Authorized

$150,000 15,000 $100,000

10,000

$50,000

+20%

5,000

$2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 As of June 2014 Source: Florida Realtors & U.S. Census

GDP REAL GROWTH RATE -6.2%

2.2%

2009

1.8%

-2.7%

2013

2009

2013

POPULATION 19.5 Million 2014

21.2 Million 2020 (p)

Annual Growth

Source: Bureau of Economic Analysis

1.3 0.9

1.0

2011

2012

2013

1.4

2014

Source: Office of Economic & Demographic Research

Jeff Atwater | Chief Financial Officer

Florida’s Bottom Line

1

FLORIDA'S ECONOMY

Sunnier Times in the Sunshine State

After five years of economic recovery, Florida is now putting some daylight between where its economy was at the depths of the Great Recession and where it is headed today. Florida’s economy is now firmly back on track. Not only has employment and economic activity picked up across the state, but the mix of growth has evolved in a way that should produce much more durable economic gains well into the future.

Job Growth Outpaces the Nation

Nonfarm employment is rising at a pace well in excess of the nation, and the unemployment rate is now back in line with the national rate. Florida’s unemployment rate has fallen 1.2 percentage points over the year to 6.2 percent as of June 2014. Nationally, the unemployment rate has fallen by 1.1 percentage points to 6.2 percent. Job growth in Florida has steadily gained momentum and continues to outpace the nation. Nonfarm employment increased 3.1 percent over the past year, which is more than a full percentage point higher than the 1.9 percent gain nationwide. Every other major industry category has added jobs over the past year, with the strongest gains coming in the state’s private sector and professional & business services, where employment increased 3.6 percent and 4.1 percent, respectively, over the past year. Not only has employment picked up across the state and the unemployment rate fallen in line with the national average, but the mix of growth has evolved in a way that should produce much more durable economic gains well into the future, which is evident in the mix of jobs being created. Employment in the professional, technical and scientific industries has risen 4.0 percent over the past year and has already exceeded its prerecession peak.

Housing Continues to Gradually Revive

Florida’s housing market has continued its deliberate, yet uneven recovery thus in far 2014. Over the past two years, Florida’s housing market has seen double-digit price appreciation and a shrinking inventory that ignited the construction sector. While those gains have moderated recently, the fundamentals are still strong. Home prices have made a strong upward movement from the depths of the recession, from a low of $122,200 in 2011 to a median price of $185,000 for a single-family home in June 2014, which is an increase of 52 percent. Statewide, median home

Jeff Atwater | Chief Financial Officer

prices are 5.2 percent higher than a year ago and overall sales growth continues to push ahead, with closed sales up 15 percent from a year ago. New home construction permits are still up 20 percent from a year ago on a 12-month moving average basis, which is well ahead of the national average (+10%). The road ahead may be a bit uneven. Investor demand has weakened as rising home prices reduce the return from such real estate investments, and as a result, cash sales are now down 9.2 percent from a year ago. The falling market share of cash transactions may suggest a diminishing role of investors in Florida’s housing market. As investor demand continues to cool off, traditional homebuyers will have to move back in to fill that void, which is happening and should continue. The transition is unlikely to be smooth, however, particularly with credit remaining tight and many would-be buyers still short of the equity needed to trade up or relocate.

Diversification is Leading Economic Growth

After a sluggish few years of growth upon emerging from the Great Recession, Florida’s economy is now growing faster than the nation as a result of improving consumer confidence, population growth, the housing market recovery, and continuing improvement in the labor market. In 2013, Florida’s economy totaled $800 billion in nominal Gross Domestic Product, the fourth largest state economy in the nation, and grew by 2.2 percent over the year, compared to 1.8 percent nationally. Florida’s economy is now less dependent on the continued inflow of new residents and tourists and more driven by internal forces. These forces include a reinvigorated defense and aerospace sector, a rapidly emerging life sciences & healthcare industry and a diverse mix of professional services, including an increasing array of higher-value added R&D facilities and corporate and regional headquarters. Florida’s economy is also more deeply integrated into the global economy and poised to benefit from the growth in international trade anticipated from the Panama Canal expansion. Improvements in the fundamental building blocks of Florida’s economy will stoke faster growth in the state’s Real Gross Domestic Product (RGDP) going forward. Over the next four years, Florida’s RGDP is expected to accelerate by 3.3%, 3.6%, 3.9%, and 3.8% in 2014, 2015, 2016, and 2017, respectively.

Florida’s Bottom Line 2

3 QUESTIONS WITH…

MICHAEL MYHRE

CEO and Network State Director, Florida SBDC Network 1. What is the SBDC and who do you serve? The United States Congress established the national Small Business Development Center (SBDC) program in 1980 following the success of a three-state pilot effort launched in 1976, in which Florida participated. SBDCs foster local, regional and state economic prosperity by providing small and mediumsized businesses with access to professional business assistance to support continued growth. The goal of the Florida SBDC is to provide small businesses, our state’s primary economic and job contributor, with access to professionally certified and credentialed business consultants to help mitigate the common entrepreneurial pitfalls, thus yielding higher success rates and contributing positive economic growth for Florida. State designated as "Florida's Principal Provider of Business Assistance" [§ 288.001, Fla. Stat.], the Florida SBDC Network serves all 67 Florida counties—from Pensacola to Key West. As the only statewide provider of entrepreneurial and business development services, the Florida SBDC Network plays a vital role in our state's economic development initiatives and prosperity. Headquartered at the University of West Florida in Pensacola, the Florida SBDC Network partners with Florida's state universities, colleges, and other economic development organizations to assist small and medium-sized businesses, regardless of industry or stage of business. The synergistic effect of this partnership has resulted in a long history of positive revenue and economic growth for Florida and invaluable support to more than 1.1 million existing and emerging small business owners. 2. What are some of the most important issues facing small businesses today? Our vision is to be Florida's principal resource and thought leader for Florida's small and medium-sized businesses. To achieve success in this effort, it is essential that we remain cognizant of the current and future challenges, barriers, and issues Florida businesses face. The Florida SBDC’s most recent survey of nearly 20,000 entrepreneurs and small business owners revealed that the top three issues facing Florida's small businesses are access to capital, development and expansion of markets and revenues, and access to business intelligence and advisors. Surprisingly, is that the order of these issues varied depending on the stage and size of the business—access to capital was the top issue for early-stage businesses (less than three years and fewer than five employees), while market development and expansion was the top issue for small to medium-sized businesses (more than three years in business and five to 50 employees). To help businesses overcome these challenges, the Florida SBDC Network employs certified and credentialed specialists in these areas. As a result, in 2013 the Florida SBDC Network helped its client businesses gain access to nearly $200 million in investment capital and generate $5.5 billion

Michael W. Myhre is the Chief Executive Officer and Network State Director for the Florida SBDC, leading Florida's largest provider of hands-on business assistance for small and medium-sized businesses.

in revenues, including new revenues in international markets. As economic conditions continue to improve, it is critical now more than ever that small businesses think and act strategically. We encourage each of our client businesses, regardless of size or number of years in business, to work with their local SBDC to plan for growth. 3. What can SBDCs do for small businesses? Where do we go for more information? Owning and operating a business can be one of the most rewarding experiences in life. What comes with a sense of enrichment and excitement, however, is a sense of isolation. Being an entrepreneur ultimately means taking all the risk and making the difficult decisions that could potentially make or break a business. This is where SBDCs help. Think of an SBDC as a business owner’s unbiased partner or board committed to making their dream a reality. At no cost to the business, the Florida SBDC Network provides access to one-on-one professional business consulting specifically targeted to help businesses succeed. Our professional expertise is focused on areas vital to accelerating business growth, including business and strategic plan development, access to capital, and strategic market research and market growth development—including expanding internationally and doing business with the government. Our stakeholders envision and expect that our services help Florida's small and medium-sized businesses improve market competitiveness, grow revenues, and improve profits—thus significantly contributing to new jobs for Floridians while improving Florida's tax base. Most people may be familiar with their local SBDC office; however, what they may not be familiar with is the depth and breadth of professional expertise available. No matter if a business has been in existence for a hundred years, or is just starting out, the Florida SBDC Network has the right tools and specialized expertise to help them achieve business success.

FOR MORE INFORMATION, PLEASE VISIT WWW.FLORIDASBDC.ORG Jeff Atwater | Chief Financial Officer

Florida’s Bottom Line 3

STATE & NATION

Fostering a Favorable Small Business Climate

1st

Texas

11th

2nd

Florida

5th

49th

New York

50th

50th

California

48th

Source: Chief Executive Magazine and Tax Foundation

The federal government could learn from Florida’s example. While the state is receiving international interest for its economic reforms, the nation’s competitiveness in the global economy is slipping. According to an annual KPMG study, the United States’ effective corporate tax rate is 40 percent, the highest among industrialized countries, and even higher than countries such as Spain (30%), France (33.3%), and the United Kingdom (21%). Despite imposing some of the highest tax rates on economic activity in the world, the federal government has still managed to increase national debt. Currently, federal debt held by the public is worth 74 percent of total U.S. GDP, up from 36 percent ten years ago in 2004. Unfortunately, this figure is expected to continue rising over the coming years, projected to be 88 percent of total GDP by 2030.

US BUSINESS TAXES AMONG HIGHEST IN THE WORLD 40.0% 33.3%

35%

30.0%

30%

29.6% 26.5%

25%

15% 10% 5%

Canada

20%

21.0%

20.0%

Russia

40%

United Kingdom

45%

Germany

Ultimately, these efforts are likely to yield economic dividends to all Floridians through job creation, better wages, and higher standards of living. In comparison, similarly situated states such as California and New York, which are consistently ranked as the worst place to do business in the country, are watching businesses flee and government debt balloon.

Business Tax Climate

Spain

Florida is fortunate to have a healthy state business tax climate – currently ranked 5th best in the nation, which helps provide the conditions for small businesses in Florida to thrive and prosper. State leaders have contributed to this initiative by providing tax and regulatory relief for small businesses over the past four years. This includes changes to the corporate income tax that have spared thousands of firms, an assortment of tax and fee reductions, expedited permitting, and streamlining of the regulatory environment. Further, Florida has lowered the potential for future tax increases by reducing its total outstanding debt by $4.0 billion since 2010.

State

France

Taxes matter to all businesses as they affect business decisions, job creation and retention, site location, competitiveness, and the long-term health of a state’s economy. Most importantly, taxes take revenue directly out of the economy. If taxes take a larger portion of profits, that cost is passed along to either consumers (through higher prices), employees (through lower wages or fewer jobs), or shareholders (through lower dividends or share value). Thus, states with lower tax costs are more attractive to business investments and experience more economic growth.

Best & Worst States for Business

United States

The economic recovery has doubled as a strategic opportunity for the state to pave the way for future prosperity by diversifying its economy and investing in homegrown entrepreneurs. A healthy and competitive business climate is a catalyst for encouraging these developments. Florida is now the second best state for doing business in the nation, according to Chief Executive Magazine’s annual “Best & Worst States for Business” survey. The 2014 survey, which polled more than 500 CEOs across the country, again ranked Florida just behind Texas, which maintained the top ranking. However, Florida is edging up and even surpassed Texas in its quality of living environment in the 2014 survey.

0%

Source: KPMG International Tax Rate Survey 2014 (corporate tax rates)

CLICK GRAPH TO SEE SOURCE DATA Jeff Atwater | Chief Financial Officer

Florida’s Bottom Line 4

SCIENCE & TECHNOLOGY

Florida Getting Ready for 3D Printing/Additive Manufacturing 3D printing and additive manufacturing are frequently discussed in the news media as revolutionary technologies, which will change lives in the future. By creating customized, consumer products on demand, 3D printing and additive manufacturing have captured the imagination of many Americans. In addition to faster and more convenient products, this evolving technology is poised to create new products, which were not possible before. Recognizing these trends, Floridians are getting ready for future opportunities in this field. “3D printing” is a process of adding material in successive layers to build an item, ranging from small plastic objects to complex metal jet engine parts. The 3D printing machine works like a traditional printer, adding a small amount of material one layer at a time to eventually produce a multi-dimensional object. This process is different from many traditional manufacturing processes (e.g. machining) where parts are made by removing material from a block of metal. In addition, 3D printing only uses enough raw material to make the object so there is little to no waste in the manufacturing process unlike traditional machining.

A Changing Market

The traditional role of 3D printing for the past 20 years has been to construct prototype products. Companies have typically used 3D printers to build one, or a small number, of prototype parts for evaluation and testing; however, when test parts became a part of production, traditional manufacturing processes built them. As a result of low production volume and relatively higher expense, 3D printers worked in relative obscurity for many years. Today, 3D printing is stepping out from making prototypes to manufacturing high value, high precision finished products. Recent technological advancements have also made 3D printing more cost effective and, therefore, more attractive to manufacturers. One of the most important changes is expanding the types of materials that can be used for 3D printing. In addition to traditional plastics, a wider variety of metals can now be used, expanding the types of products, which can be created using 3D printing, such as aerospace components. Even biological materials, such as cells and tissues, can be produced using 3D printing processes. This advance allows researchers to build blood vessels and potentially full working organs for future transplants using 3D printing.

3D printers costs $1,000, some even less. Only a few years ago, similar machines would have cost several thousands more. In the future, consumers will be able to build some of the products they buy today. A person who owns a 3D printer could make either a replacement part for an item he or she owns or could make a new product at home rather than purchasing it in a store or on the internet. For example, a seller would send the buyer an electronic file to build a smart phone case. The customer would manufacture the case at his or her home and have the added benefit of no transportation or shipping costs.

Florida’s Role

Florida is a contributor to the advancement and development of 3D printing technology. Several Florida universities have developed programs to use 3D printing in innovative ways. For example, The University of Florida uses 3D printing to create models of human structures, such as spines and skulls, for teaching and practicing surgical techniques. Utilizing live x-ray equipment (fluoroscopy), the surgeon and students watch practice procedures from different angles using the 3D printed anatomy as the test subject. In contrast, the University of South Florida uses 3D scanners and 3D printers to recreate archaeological artifacts for study. Recreating artifacts in complete detail allows researchers and students to study items locally in Florida, without needing to travel to the artifact’s original location. In addition, a number of universities in Florida have made 3D printers available to students to develop their own projects at little or no cost. As the 3D printing market matures and innovates and manufacturing costs decease, more and more products will be created utilizing this manufacturing process. It is a technology for Floridians to watch and take advantage of in the future.

3D PRINTING

The impact of 3D printing advancements is not limited to manufacturers and medical scientists. Recent developments have reduced the cost and increased functionality of 3D printing equipment, making the process more accessible to the average person or business. Today, most entry-level plastic forming

Jeff Atwater | Chief Financial Officer

Florida’s Bottom Line 5

BUSINESS & FINANCE

ACCELERATING GROWTH THROUGH INNOVATION By Jane Teague, COO of FICPR

We know that small businesses historically have been the backbone of Florida’s economy and critical to the recent economic recovery. According to the Florida Chamber of Commerce, four out of five new jobs in Florida will be created by small businesses. But what may not be as well-known is the role that universities can play in spawning new business opportunities, and what a typical growth path looks like for these innovationbased businesses. Companies that are commercializing advances in industries such as life sciences and clean technology solve serious issues that affect millions of people worldwide and have the potential to pay significant economic development dividends statewide. The Florida Institute for the Commercialization of Public Research is committed to ensuring that critical resources are in place to support their growth and success, so that they may remain in Florida and drive economic prosperity for generations to come.

Time to Market – The Greatest Challenge

Companies must bring products to market quickly, not only to improve and save lives, but also to achieve a competitive advantage and reach revenue and profitability. Delays in product development and launch allow competitors, both domestic and international, to get to market quicker, thus closing the window on commercial opportunity. Click here for a chart depicting the typical product development and funding life cycle of an innovation business, and public resources that are available to support growth.

Key Elements for Success – The Power and Promise of Angel Investing

There are two key areas that, if addressed, could shorten the length of time it takes to bring new products to market: management and capital. Attracting and retaining management talent is key to starting, growing, and keeping great companies in Florida. The Florida Institute’s CEO Council and other talent identification and engagement activities such as Startup Quest™ help support new product commercialization and company growth. Additionally, access to seed and early stage funding is critical if young companies are to cross the “Valley of Death” successfully, and the funding process must be short and efficient. The Institute’s Florida Technology Seed Capital Fund provides funding to qualified university spinout companies and requires entrepreneurs to match funds with private investment capital. However, more must be done to leverage the vast wealth that exists in Florida to encourage angel investment at the local level and fill funding gaps along the entire company development continuum.

Jane Teague is Chief Operating Officer of the Florida Institute for the Commercialization of Public Research (FICPR), a statewide agency that supports new company and job creation based on publiclyfunded research.

Structured angel investment groups such as New World Angels and funds such as the Tamiami Angel Funds have led the effort to organize early investment activity in Florida. More recently, after regional success in Central Florida, the Florida Angel Nexus (FAN) launched a statewide initiative to unite Florida’s investment community by creating a network of investors and investment groups and connecting them to qualified companies. FAN will also provide a robust investment infrastructure to streamline the process from application to due diligence and funding, to expedite the flow of capital to early-stage companies. Sophisticated angel groups and networks provide investors with access to quality deals and best practices, opportunities to collaborate with like-minded yet diverse investors, and assistance with due diligence, investment paperwork, and post-investment monitoring and support. Many investors also contribute their time, experience and contacts to help accelerate company development and minimize roadblocks often encountered by entrepreneurs. Some will ultimately join the company to manage future growth, bringing the capital attraction and talent retention dynamic full circle. Regional investment groups such as Accelerated Growth Partners in Miami and others are forming and are vital to a healthy innovation ecosystem. In order to develop Florida’s innovation economy further, we must continue to attract and retain talent, as well as identify, educate and engage angel investors to pave a smoother, quicker path towards company profitability and success. A list of additional resources may be found here.

FOR MORE INFORMATION, VISIT WWW.FLORIDA-INSTITUTE.COM Jeff Atwater | Chief Financial Officer

Florida’s Bottom Line 6

CONSUMER CORNER Financial Literacy and Your Small Business

In the business world, the importance of financial literacy cannot be overstated. A business owner’s decisions can either make or break the company. Even businesses who sell their products and services with great success can fail if they do not properly manage their finances. This is particularly true for small business owners who must routinely make significant financial decisions for their organizations that have long-term effects on their business’ bottom line. According to The Bureau of Labor Statistics, nearly 50 percent of all small businesses close their doors within the first five years of operation. One reason for this low rate of success can be attributed to poor financial decisions made by those with inadequate levels of financial literacy, which is why it is important that all small business owners take the necessary steps to learn the financial terms and concepts that are integral to running a business. A financially literate business owner is one who understands basic financial terminology and concepts and can use them to evaluate the business’ performance. Such a business owner is in a better position to make informed decisions and has a greater chance of making and running a successful business. Becoming financially literate may seem like a daunting task with an entirely new language of financial terms and concepts to learn. Indeed, finance has terminology of its own, but a person can start small and work to become “financially literate." As a starting point, it is important to understand and utilize income statements and balance sheets because they provide key indications of a business’ health.

The income statement, also known as the profit and loss statement, focuses on money flowing in and out of the business. A key indicator of financial health on an income statement is “net income”, which is the profit the business has generated after expenses are taken into consideration. The balance sheet is another important financial tool for small businesses. Where the income statement focuses on cash flow, the balance sheet records a business’ assets (current and fixed), liabilities (current and long-term) and owner equity. Understanding how to utilize balance sheets and comparisons of business assets to liabilities is imperative in evaluating the long-term health and sustainability of a small business. With an understanding of these documents and key ratios, small business owners can properly evaluate the financial health of their businesses and gain insight into the performance of their business not seen on the surface. Armed with such information, small business owners can get ahead of the competition, plan strategically, and work more effectively toward the long-term success of their business. For additional information on financial literacy and other small business issues, please visit the the Department of Financial Services’ Your Money Matter$ website and the U.S. Small Business Administration’s Money Smart website.

7 Financial Ratios Every Small Business Owner Should Know RATIO

FORMULA

LOCATION

Gross Profit Margin

= (Sales-Cost of Goods Sold) / Sale

Income Statement

Net Profit Ratio

= Net Income / Sales

Income Statement

Current Ratio

= Current Liabilities / Current Assets

Balance Sheet

Debt Ratio

= Total Liabilities / Total Assets

Balance Sheet

Days In Accounts Receivable

= 365 / [(Costs of Sales / Avg. Accounts Receivable)]

Both

Days In Accounts Payable

= 365 / [(Costs of Sales / Avg. Accounts Payable)]

Both

Return on Investment

= Net Income / Owner’s Investment

Both

Source: U.S. Small Business Administration

Jeff Atwater | Chief Financial Officer

Florida’s Bottom Line 7

SMALL BUSINESS RESOURCES BRINGING PHYSICAL AND FINANCIAL HEALTH TOGETHER FOR SMALL BUSINESSES By Florida KidCare As the guardians of their children’s health, many parents would do anything to ensure the safety of their little ones. However, not all small businesses can afford to provide their employees with health insurance—let alone children’s health insurance. As a result, these children can remain uncovered and vulnerable when the unexpected happens. The Florida KidCare program provides employees of small businesses that are unable to provide children’s health insurance an option that is both comprehensive and affordable. Those that have access to children’s health insurance through their employer (but at a higher cost) can still find peace of mind through a more financially feasible program. Florida KidCare covers children from birth through 18 years of age —even if one or both parents are working. Many families pay as little as $20 a month, and most pay nothing at all. A full-pay option is available to those families that do not qualify for subsidized coverage. This is comprehensive health care coverage that includes immunizations, check-ups, dental, emergencies, prescriptions and much more.

What sets Florida KidCare apart is that enrollment is open year-round. That means that with an ever-evolving health care landscape, families can apply at any time. The majority of families (90 percent) apply online, and there is also a paper application that can be mailed directly to an interested family. The health benefits, both physical and financial, of this coverage are significant. Children who have health coverage not only live more fulfilling childhoods, but they also miss less days in school, on average. As a result, they experience higher levels of success and productivity in the classroom. More days in the classroom equates to more work days and productivity for parents, too. And since small businesses now account for three-quarters of all new jobs in this country, it’s clear that together, we can make an impact. For more information, visit www.floridakidcare.org or call 1-888-540-KIDS (5437).

FOR MORE INFORMATION, PLEASE VISIT WWW.FLORIDAKIDCARE.ORG

Jeff Atwater | Chief Financial Officer

Florida’s Bottom Line 8

FLORIDA

Small Business & Entrepreneurs DRIVING FLORIDA’S ECONOMIC ENGINE

96%

THERE ARE

2.MILLION3

Employ Less Than 50 EMPLOYEES

1 OUT OF EVERY 3 WORKING FLORIDIANS

ARE EMPLOYED BY A SMALL BUSINESS WITH LESS THAN 50 EMPLOYEES

SMALL BUSINESS ESTABLISHMENTS IN FLORIDA

16X

2/3

rds

CREATE NEARLY OF NET NEW PRIVATE SECTOR JOBS IN FLORIDA

PRODUCE MORE PATENTS THAN LARGE FIRMS

FLORIDA’S SECRET IS OUT!

#1 Most Innovative State - Fast Company #2 Best Place to do Business - CEO Magazine #2 Highest Business Birth Rate – US Chamber of Commerce #5 Best State Business Tax Climate in 2014 - Tax Foundation #5 Best Small Business Policy Climate in 2013 - SBEC Index #5 Best State for Future Job Growth – Forbes

4.6 MILLION FLORIDIANS ARE EMPLOYED BY A SMALL BUSINESS

JEFF ATWATER

200,000 NEW SMALL BUSINESSES HAVE OPENED THEIR DOORS IN FLORIDA

200,000 2009

2.1 Million

Jeff Atwater | Chief Financial CHIEF FINANCIAL OFFICEROfficer

2013

2.3 Million

FLORIDA’S PRIVATE SECTOR GDP

46%

54%

SMALL FIRMS LARGE FIRMS

For more information about Florida’s economy, please visit

Florida’s Bottom Line 9 www.MyFloridaCFO.com/ FloridasBottomLine/