Best Cities for Small Business in Arizona
Arizona ranks #30 of 50 for small business, with a small business score of 52.2. Queen Creek is its best city for small business at 76.4.
- Arizona, all states
- #30 of 50
- Population
- 71,867
Arizona for Small Business: The Full Picture
Arizona ranks #30 out of 50 for small business owners and entrepreneurs, with a mixed set of conditions for entrepreneurs. The state's fiscal health score of 59/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Arizona's overall tax burden is 8.22% of income, with a 2.5% income tax rate that applies to both personal and pass-through business income. The 8.52% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 43/100) with 4.3% unemployment shows healthy labor availability.
Population growth of 0.89% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. Workforce quality may require investment in training — the education score of 33/100 suggests gaps in preparation. A typical home value of $417,990 is expensive enough that employee compensation expectations may be higher.
All 23 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Queen Creek | A | 76.4 | 66.2 | 95 | 85 | 93 | 71,867 |
| 2Marana | A | 71.9 | 65.9 | 80 | 71 | 93 | 56,938 |
| 3Catalina Foothills | B+ | 68.7 | 62.9 | 82 | 70 | — | 52,593 |
| 4Goodyear | B+ | 66.8 | 60.2 | 76 | 64 | 91 | 107,645 |
| 5Gilbert | A | 65.2 | 63.8 | 84 | 78 | 45 | 280,262 |
| 6Surprise | B+ | 63.9 | 60.2 | 67 | 63 | 88 | 154,948 |
| 7Buckeye | B | 63.8 | 58.4 | 69 | 60 | 89 | 104,923 |
| 8Scottsdale | B+ | 59.9 | 61.0 | 75 | 72 | 36 | 243,821 |
| 9Avondale | C+ | 59.9 | 55.6 | 58 | 57 | 86 | 92,477 |
| 10Maricopa | C+ | 59.9 | 52.6 | 69 | 60 | 86 | 67,163 |
| 11Chandler | B+ | 59.7 | 61.0 | 73 | 70 | 38 | 280,136 |
| 12Peoria | B | 58.6 | 58.2 | 66 | 64 | 53 | 196,906 |
| 13Casas Adobes | C+ | 54.5 | 53.6 | 65 | 42 | — | 72,059 |
| 14Tempe | B | 53.5 | 57.4 | 46 | 57 | 48 | 188,065 |
| 15Mesa | C+ | 53.0 | 54.7 | 57 | 58 | 40 | 511,764 |
| 16San Tan Valley | D | 52.0 | 45.8 | 68 | 54 | — | 109,189 |
| 17Casa Grande | D | 51.6 | 48.5 | 46 | 46 | 77 | 60,905 |
| 18Glendale | C | 51.0 | 52.1 | 44 | 52 | 56 | 252,833 |
| 19Phoenix | C | 50.9 | 51.3 | 50 | 57 | 44 | 1,642,323 |
| 20Flagstaff | C+ | 47.1 | 53.3 | 38 | 51 | 40 | 76,445 |
| 21Lake Havasu City | C+ | 46.8 | 53.0 | 45 | 48 | 38 | 58,359 |
| 22Tucson | C | 43.5 | 50.0 | 30 | 43 | 36 | 547,073 |
| 23Yuma | D | 39.1 | 46.1 | 40 | 13 | 31 | 100,139 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Arizona for Other Lifestyles
Frequently Asked Questions
Is Arizona a good state for small business?
Arizona ranks #30 out of 50 for small business with a persona-weighted score of 52.2/100. Its strongest relevant category is Safety (63/100) and its weakest is Livability (24/100).
What is the best city for small business in Arizona?
Queen Creek ranks #1 in Arizona for small business with a score of 76.4/100, followed by Marana and Catalina Foothills.
What factors are most important for small business in Arizona?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.