In 2011, Arizona had the highest rate of entrepreneurial ventures compared to any other state in the country, according to CNN Money. While fewer Americans started their own businesses nationwide, 520 out of every 100,000 adults in Arizona had startup businesses that needed an office for rent. Phoenix alone ranks third in the country for entrepreneurs per 1,000 people and is home to nearly a dozen business incubators and accelerators. Here’s why:
1. Low business and property taxes: Arizona’s business and property tax rates are relatively low compared to nearby states. Its corporate income tax rate is 6.97 percent compared to California’s rate of 8.84 percent. It ranks 6th in most business-friendly state property tax rankings and has one of the nation’s lowest combined state and local tax burdens for those looking for an office to rent. Phoenix and Mesa have among the lowest property tax obligations in the nation, according to the Phoenix Business Journal.
2. Low workers’ compensation costs: Arizona is considered to be one of the most cost-effective states for purchasing a workers’ compensation policy. Arizona ranked 38th in average premium rates, making it the 13th cheapest state in the country according to a recent study.
3. Highly educated labor pool: With schools like Arizona State University and the University of Arizona nearby, there is no shortage in the labor force of young graduates, especially in the fields of business, science and technology. At ASU alone, there are 11,000 students enrolled in any of 110 entrepreneurship courses.
Entrepreneurism is the future; new start-ups and original ideas are cropping up every day that will change the business landscape of tomorrow. With so many incentives for entrepreneurs, operational costs 40 percent lower than in California, and more than 300 days of sunshine, it’s no wonder so many entrepreneurs are in the market for a Phoenix commercial office.