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Arizona has worked to establish an inviting business climate, and entrepreneurs have taken note. Not only did Arizona post the fourth-best gross domestic product growth rate in the U.S. in 2018, it’s one of the fastest-growing states in the nation, with an unemployment rate that recently fell to 4.7%. Its low tax rates, business credits, and limited regulations, along with sunny weather and a low cost of living, have made it a draw for businesses. Small business owners across the state are encouraged by these healthy indicators, ready to seize new opportunities and pursue economic growth.
The primary drawbacks of business in Arizona are difficulties accessing startup and growth capital (a problem that plagues much of the nation) and the state’s generally low personal income per capita. While the cost of living is moderate in Arizona, personal income is lower than the national average, meaning the average Arizonan has less disposable income to spend on small businesses’ goods and services. Still, neither of these factors have dampened entrepreneurs’ optimistic outlooks in the Grand Canyon State.
The costs to operate a business in Arizona are lower than those of many of their neighboring states. For example, the Greater Phoenix Economic Council reports that operating costs in Arizona are as much as 40% lower than in California. Between the tax credits, lower tax rates, and minimal number of regulations, Arizona does its best to allow businesses to do what they do best; create jobs and contribute to the overall well-being of the community.
Lower cost of living, and investment in education
Cost of living is a major factor when attracting talented employees to make your business successful. To bring in the best talent, you need to be in an area where housing and other living costs are affordable. Arizona’s major cities have a lower cost of living than most major metropolitan areas of the country.
Arizona spends more per capita on public school students than most other states, with smaller class sizes and a better quality of education. A well-educated population produces a more skilled workforce, increasing the likelihood of your business being successful when you locate here.