15 Fascinating Arizona Small Business Statistics

Arizona is the sixth largest and 14th most populous state in the US and, with a gross state product of around $321 billion, the Grand Canyon state has a larger economy than countries like Ireland and New Zealand.

The state has been one of the fastest-growing states in the nation. Its low tax rates and limited regulations along with sunny weather and a low cost of living have made it a draw for businesses, particularly small businesses (SMB).

Micro-enterprises or small businesses make up a large percentage of businesses in Arizona. They are crucial to the continuous growth of the state’s GDP.

Here are some fascinating statistics about small businesses in Arizona:

  1. There are 592,485 SMBs, an incredible 99.4% of all Arizona businesses.
  1. Micro-enterprises employ a total of 1.1 million people, that’s 43.5% of all employees in the state.
  1. There are 122,590 self-employed minorities, that’s 1.68% of the general arizona population.
  1. The major disadvantages of making a real success of a small business in Arizona are the difficulties of accessing startup and growth capital and the state’s low personal income per capita.
  1. The tax burden on Arizona’s small businesses is generally manageable. The state sales tax is capped at 5.96%, the corporate income tax rate is 6.9% and the personal income tax rate is between 2.59% and 4.5%.
  1. If an SMB sells physical goods to Arizona residents, the business owner needs to apply for a transaction privilege tax which is another irritating, minor barrier to entry.
  1. Arizona’s micro-retailers rank 2nd nationally for foot traffic.
  1. SMBs generated 27% of Arizona’s $21 billion in total exports. Most of these exports include storage units, furniture, potato chips, peanut butter and nail polish.
  1. Self-employed individuals running their own incorporated businesses have an average median income of $51,000.
  1. The healthcare and social assistance sectors have the lion’s share of SMB employment with a total of 167,165 employees. 
  1. Arizona state law requires that every new Arizona LLC designates an Arizona registered agent that will be available during regular business hours at a physical address within the state’s borders.
  2. Small firms in mining, quarrying, oil and gas extraction have a pretty low number of SMB employment with only 1,594 employees.
  1. But the winner are the mining, quarrying, and oil and gas extraction sectors with only 1,254 SMBs. 
  1. Not surprisingly, there are 84,588 SMBs engaged in the professional, technical and scientific services sectors. These are by far the largest industries in Arizona.
  1. SMBs created 44,301 new jobs in 2019. Firms with fewer than 20 employees account for 25,320 of these new jobs.

Sources

  1. US small business administration – small business profiles
  2. Business Daily News
  3. Making Action Possible

Small Business Statistics By State