Once a frontier state specific to mining and agriculture, Arizona has since thrived over the decades, now home to over 400,000 registered small businesses in industries such as technology, medicine, finance, and industrial. Although we have travelled the rough road to recovery following the recession, Arizona has seen a sustained, gradual climb back to economic relevance, creating a much more stable economy from which to build.
With Phoenix ranked as 14th in start-up companies1 we are seeing more and more small business owners travel to Arizona to get their small businesses off the ground. Because of our transient population, small businesses have the opportunity to thrive in this great state with plenty of sightseers and tourists travelling to see the rich history of Arizona. We already know that big cities are profitable, but residents are beginning to learn that there is big revenue in small places as well. Arizona cities such as Wickenburg and Sedona are providing the perfect location for a start-up business as they are heavily travelled and business owners are unlikely to face big competition from other companies.
In recent years, we have seen Arizona make great strides in supporting and advocating for the small businesses that make up the foundation of our economy. Not only do we see a good tax structure for both small and large businesses as Arizona taxpayers only pay 8.8% (well below the national 9.9% average)2, but Arizona has a favorable climate from a policy and regulation standpoint. Passing Arizona’s first Balanced Budget since 20073 and the newest Crowdfunding bill just last year, the Legislature has been taking a much more supportive stance in not only improving the economic security of our state, but also in helping small businesses receive the funding they need while still protecting Arizona’s vital areas such as K-12, child safety, and public safety.
The Arizona Small Business Association (ASBA) focuses heavily on educating our small business owners about the opportunities available to help them best succeed. Knowing that our customers are no longer just in our neighborhood, ASBA has recently partnered with The Metro Phoenix Export Alliance (MPEXA) to help business owners learn about exporting and opportunities outside of Arizona. With prime business locations, new resources for funding, and now the possibility of exporting goods and services, ASBA is helping companies take their business to the next level.
80% of Arizona businesses are truly small businesses, clearly demonstrating that the support and opportunities for success are vital to Arizona’s economy. Known as the “entrepreneurial state,” Arizona has worked hard to educate and serve our business community. With such positive strides made in the last few years, we are sure to see Arizona go up from here. After all, it takes a state to raise a small business.
1 Metropolitan Area Rankings for Startup Activity (2015) Ewing Marion Kauffman Foundation
2 Tax Foundation: Arizona ranks low for tax burden (2016) Phoenix Business Journal
3 Year One Annual Report (2016) Governor Ducey’s Office