Best Industries for Entrepreneurs in Arizona
Arizona’s diverse economy offers a wealth of opportunities for aspiring entrepreneurs looking to start an LLC in Arizona. Choosing the right industry can significantly impact your success. This guide explores some of the most promising sectors in the state of Arizona for starting a business.
The Thriving Technology Sector in Arizona
Arizona is quickly emerging as a competitive tech hub, drawing startups and established companies alike! With lower operating costs than California, and a growing supply of tech-minded graduates from local universities, Arizona is the ideal place to launch a tech-focused company.
Software and SaaS Companies
Software as a Service (SaaS) is a software distribution model where users can download or access online software applications for their home, school, or business. The provider typically requires the user to pay for access to the software via a subscription. Examples of SaaS companies are: Atlassian, Canva, Zoom, Mailchimp, and Dropbox.
A growing number of software and SaaS businesses are choosing Phoenix as their homebase. As the demand for cloud-based services continues to rise, Arizona is striving to attract these types of businesses to its cities with favorable business tax laws and advanced transportation and communications infrastructure. This focus on attracting the tech industry has led STEM based job postings in Phoenix to increase by 29% year-over-year as of December 2020. Arizona also saw a 4.3% increase in tech companies, according to Arizona Technology Council.
Lower operating costs and greater infrastructure, as well as a more favorable tax climate, make Arizona one of the most supportive states for tech-based business.
E-commerce and Digital Marketplaces
As more people turn to online shopping, Arizona businesses are succeeding with small online stores, shipping companies, and hand-crafted product shops. Arizona’s central location and intricate shipping networks make it the best area for homebasing your business and for shipping your goods worldwide.
The Greater Phoenix area is a major e-commerce hub and is host to big shipping facilities like Amazon, Chewy, and UPS. According to the Greater Phoenix Economic Council, this is in part to the operating costs being 12% lower in Arizona as compared to other competitor markets.
Tech Consulting and Services
In this digital age, all businesses need to branch out into the online marketplace to survive. So, if you have a background in cybersecurity, software or website development, an LLC in Tech Consulting and Services could be a great fit for you.
Tech consulting is also a growing field in Arizona. Businesses of all sizes look for local tech consultants to help them organize and optimize their systems and data storage to increase efficiency. Tech consultants are also hired to launch custom tech solutions to elevate a company’s client user experience for greater customer retention and to increase their client base.
Growth in the Healthcare and Biotech Industries
Arizona’s population is expanding and aging. Both of these trends create ongoing demands for healthcare products and services.
Whether you’re starting a home care-based business, or developing new medical devices or technologies, this state’s healthcare sector offers a strong customer base and lasting opportunities.
Medical Device Companies
Arizona offers a welcoming environment for medical device startups. Entrepreneurs designing diagnostic devices, surgical equipment, or new health monitors will benefit from this state’s many research hospitals and universities.
Biotechnology and Pharmaceutical Companies
Biotech firms in Arizona are actively engaged in everything from genetic research to drug development. The state provides research grants, lab space, and partnerships with major universities. Entrepeneurs in the life sciences will find a collaborative environment excited to develop and grow their business.
There are several foundations and nonprofits in Arizona that collaborate to improve healthcare opportunites. For example, in 2019 the Arizona Biomedical Research Centre (ABRC) issued $8.2 million in grants to support diverse biomedical research in Arizona. Many of those grants went to small businesses to support the research and development of their biotechnology innovations.
Healthcare Technology Solutions
Digital health is booming in Arizona. Telemedicine platforms, patient management software, and AI-driven diagnostics are in high demand. Starting a healthcare tech business here means you’re addressing real needs in a growing population.
The AHCCCS (Arizona’s Medicaid agency) actively promotes telehealth for its members who have transportation challenges or prefer remote healthcare visits. This makes healthcare more convenient and increases the demand for new healthcare tech and the businesses that provide it.
The Expanding Manufacturing Sector
Manufacturing is making a strong comeback in Arizona due to its pro-business policies and strong infrastructure. Entrepreneurs seeking to enter this sector will benefit from the supportive environment and the abundance of skilled workers in Arizona.
Advanced Manufacturing
The Arizona Commerce Authority is currently tracking 482 active business projects across the state, 336 of these are based in the manufacturing sector. Of those, 142 are focused on advanced manufacturing in the clean energy and other high-tech industries. Entrepreneurs with experience in 3D printing, precision tools, or robotics will find the space, educated workforce, and grants they need to establish their business in Arizona.
Aerospace and Defense
Arizona has a history of supporting the aerospace and defense industry, and it continues to offer unique opportunities in this sector. With companies like Raytheon and Honeywell operating in Tuscon and Phoenix, there’s a big demand for suppliers and logistics companies. Entrepreneurs with experience in aviation tech or component manufacturing will have no problem finding room to expand in Arizona.
The Growing Renewable Energy Sector
Arizona is one of the sunniest states in the union! It’s no wonder it has become a leader in renewable energy development. Entrepreneurs who are interested in sustainability and green technologies could make their mark in the state’s ever evolving green energy industry.
Solar Energy Companies
Residential and commercial solar installations are surging upwards in Arizona. Entrepreneurs will find great demand for businesses focused on solar panel installation and maintenance, and solar technology development.
There are many state and federal grants and incentives that make this industry even more enticing to green-energy focused start-ups.
Energy Storage Solutions
More energy means more energy storage is needed. As the energy grid grows, businesses that specialize in battery technology, grid integration, and backup power solutions are building up steam.
Arizona’s commitment to developing and support clean energy creates the perfect environment for entrepreneurs with a passion for clean energy storage solutions.
Start Your Arizona Business the Smart Way
Getting an introduction to these high earning potential industries is only the beginning! When you’re ready to move forward with your business, Arizona Statutory Agent Service is here to get your paperwork filed quickly, correctly, and affordably. Let us handle the busy work, while you make your business vision a reality.
Your Arizona LLC Journey Starts Here
