In two recent studies, Arizona ranked 36th and 35th respectively on the list of Best States to Start a Business.
In WalletHub's report, they ranked North Dakota, Texas and Utah ranked the top 3. AZ down at 36.
Over at fitsmallbusiness.com’s study, AZ ranked 35th and North Carolina, Utah and Texas came in at 1, 2 and 3 respectively.
Note: If you look at the other states, these two studies differ tremendously. For instance, California ranked 15th in WalletHub's and 41st in fitsmallbusiness.com's. With CA's high taxes and cost of living, the seond one is more believeable.
Which goes to the quesitson, if you're thinking of opening a business in AZ, should you?
The second study chose these criteria:
- Access to Capital – Venture capital and small business loans
- Startup Activity – Rate of new entrepreneurs and survivability of business
- Taxes – Corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax
- Cost of Living – Grocery, housing, utilities, transportation, and health
- Labor Market – Location desirability, and bachelor degree attainment
- Quality of Life – Access to healthcare, education, and physical safety
- Cost of Starting a Business – Per capita income and commercial rent
Local experts think that it has to do with the difficulty in AZ to get funding. For an entrepreneur, that is one of the biggest challenges. (Read more in this article in the Phoenix Business Journal.)
If you're thinking of starting a business, you're in the right place. First, the Small Business Administration (SBA) has several sources of funding and they hold a free class every month on the First Wednesday in Phoenix on how to get an SBA loan.