South Florida is witnessing a contradiction, in a sense, where its entrepreneurial segment is concerned. Efforts made over the past years are paying off and a number of new businesses are starting up. There is really no doubt about that. The financial effort put in by non- profit groups many educational institutions and private players to give a boost to new business start- ups here has paid off handsomely. However, not all of these businesses are able to sustain themselves. This results in a serious issue because when businesses fail, the resources that have been invested in them have essentially gone to waste and could have been used elsewhere.
The other side of the coin
The problem is that more than half the new businesses in South Florida fold up before their fifth year is complete. Also, the ones that do remain in the race keep running with a very slow pace of growth. Statistics show that only about 45% of the businesses that come up in South Florida stay in business after their fifth year.
The key problem
One of the main reasons for this less than desirable state of affairs is that capital is not easy to come by here. Look at the total venture capital invested in the U.S. and you see that just 1% comes into Florida. Lack of capital is a serious limitation for entrepreneurs here and this state of affairs has continued this year too. Not even $200 million dollars have flown into the Sunshine state over the first three months since the year began.
The Rokk3r Labs initiative
In more positive news, the Rokk3r labs initiative is aiming to make a difference to this unhappy state of affairs. They have announced their own venture fund now, known as the Rokk3r Fuel Venture Fund. The objective of the fund's owners is to raise $150 million which will then be invested in businesses that the Rokk3r lab generates. In effect, Rokk3r Labs founder Nabyl Charania wants to solve South Florida's problems in- house without waiting for someone outside to give a helping hand.
The initiative is a good one because it reduces the region's dependency on outside sources that may not be aware of the intrinsic advantages of setting up businesses here. Plus it will also encourage more entrepreneurs to set foot in the space because of the availability of capital.