Starting a Small Business or Franchise in Arizona - Favorable Business Climate and Growing Population

Arizona offers fertile ground for small business operators and franchise owners due to its favorable business climate, growing population, and diverse economy. The state’s tax burden is notably low, with no state income tax and only a 5.6% sales tax. The Arizona Commerce Authority's "Arizona Innovation Challenge" is an outstanding resource for Arizonans, providing funding and support to the startup community. Arizona's population is growing rapidly, with a 1.3% increase between 2021 and 2022 along with a similar trajectory for the foreseeable future. This growing population can serve as a valuable customer base for small businesses now and in the future.

Arizona's economy is represented by a diverse mix of industries, including healthcare, technology, and tourism, which can provide a buffer for small businesses during economic downturns. The state also has a thriving franchising industry, with a variety of popular franchises such as McDonald's, Subway, and 7-Eleven peppered throughout. The International Franchise Association ranked Arizona as the 3rd best state in terms of franchise establishment growth in 2022. And what is the state motto of Arizona? "Ditat Dues", translating to "God Enriches". The motto kinda says it all.