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01 Overview
02 Talent Pipeline
03 Industry Ecosystem
04 Labor Analysis
05 Competitive Operating Costs
06 Lifestyle & Livability

Startups thrive in  

Greater Phoenix

A top national hub for startups

Greater Phoenix is a top market in the nation to locate, relocate, or expand your business operations. In fact, the region’s startup sector is one of the largest in the nation.

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Contents

1
Overview
2
Talent
Pipeline
3
Industry
Ecosystem
4
Labor
Analysis
5
Operating
Cost Analysis
6
Statutory
Incentives
1

Overview

Greater Phoenix is exceptionally positioned to absorb both new-to-market and the expansion of existing startup companies.

Value Proposition

Industry Analysis

Greater Phoenix has a substantial cluster of startups with a strong community that provides mentorship, peer support and funding opportunities. The Greater Phoenix ecosystem is made up of homegrown companies and startups expanding into the region.

Support Network

Greater Phoenix offers a vast network of industry support, mentorship opportunities and access to capital. The Valley offers robust options for varied workspace needs such as coworking spaces, incubators and accelerators to help startups grow.

Workforce Ecosystem

Specialized training programs are offered at universities and community colleges across the state of Arizona. Greater Phoenix offers university alignment and partnerships to create job-ready students. The number of coding schools and bootcamps continues to grow year-over-year in Phoenix.

Lifestyle and Livability

Greater Phoenix offers a significantly lower cost of living compared to competitive markets. The valley offers an abundance of craft breweries and coffee houses throughout the region. Phoenix has more than 300 days of sunshine annually, making it the perfect location for outdoor fun and exploration.

Competitive Operating Costs

Greater Phoenix offers startups more affordable real estate and benefit costs compared to peer markets. The state also offers several quality incentives and programs to further decrease operating costs.

2

Talent Pipeline

Startups located in Greater Phoenix can feel confident knowing that Arizona offers exceptional education programs through a number of different universities, community colleges and technical schools with programs built to help support specific industries in the valley.

Arizona State University, Northern Arizona University and University of Arizona each have a full range of business, healthcare, engineering and computer-related programs. University alignment is a key component of Arizona’s economic development and expansion. Universities, community colleges and technical schools continue to grow their educational offerings to help support the startup community in Greater Phoenix.

Nationally Recognized Programs to Support the Startup Industry in Phoenix

3

Industry Ecosystem

Startups thrive in Greater Phoenix. Greater Phoenix’s business environment makes it the ideal place for businesses to start and grow.

With support coming from all angles, startups in the region are given the chance to grow and expand their business. No matter the industry, startups from across the country are relocating to and expanding in Greater Phoenix.

Below are just a few of the startups that have expanded their footprint here and found success in the Valley.

4

Labor Analysis

Greater Phoenix is home to a large and diverse supply of talent making it the perfect location for startups in any industry.

Greater Phoenix offers competitive numbers for talent in all industries compared to peer markets. The table below shows the number of jobs in each occupation category for Phoenix, Atlanta, Austin, Denver, Los Angeles and Salt Lake City. As you can see, Phoenix’s supply of talent far surpasses most other markets in all industries.

Occupation Phoenix Atlanta Austin Denver Los Angeles Salt Lake City
Advertising, Marketing, Promotions, Public Relations, and Sales Managers 14,043 21,430 5,870 7,616 47,323 5,485
Operations Specialties Managers 33,256 47,070 16,415 17,417 101,781 13,890
Business Operations Specialists 92,668 124,963 46,902 95,946 262,946 33,437
Financial Specialists 45,732 65,559 25,955 45,002 127,273 18,167
Computer Occupations 75,765 119,046 62,228 80,241 166,238 33,051
Mathematical Science Occupations 3,465 4,787 2,176 2,141 6,453 1,979
Engineers 22,536 29,287 17,031 26,225 74,516 8,815
Drafters, Engineering Technicians, and Mapping Technicians 13,633 8,774 7,297 7,698 27,522 5,084
Life Scientists 1,779 4,252 2,179 2,323 12,965 1,873
Physical Scientists 1,797 3,120 2,717 4,491 8,856 1,615
5

Competitive Operating Costs

Startups in Greater Phoenix can benefit from real estate rates that are far more affordable and competitive with peer markets.

Low Real Estate Costs For Startups, Relocation, or Expansion in Phoenix

Greater Phoenix’s affordable and competitive real estate rates beat out peer markets. The table below shows office and industrial lease rates in the following regions.

 

Labor analysis for startups in Phoenix

Tax Incentives for Startups in Phoenix

Even with the highly competitive tax environment in Greater Phoenix and Arizona, there are several tax incentives that can be utilized to mitigate operating costs. The list below includes the most relevant to the A&D industry and is not a comprehensive list of all incentives available within the state of Arizona. Additionally, it should be noted that this document is only a guide for potential incentives. Actual incentives will depend on project parameters and varying program qualifications and requirements as determined by the Arizona Commerce Authority. The Quality Jobs Tax Credit program awards $9,000 of tax credits over three years for qualifying companies. The chart below highlights the minimum qualifying capital expenditure and wage rate in an urban area, while the texts describe additional program parameters.

  • $9,000 corporate income tax credit per job ($3,000/employee/year)
  • Capped at 10,000 jobs per year
  • Employer must offer to pay at least 65% of employee health insurance premium
6

Lifestyle and Livability

With over 300 days of sunshine, Greater Phoenix offers an environment perfect for those who love to explore the great outdoors with hundreds of parks and hundreds of miles of hiking, biking and walking trails.

 

A Life Worth Living

Greater Phoenix is home to an exciting and diverse music scene that includes some of the nation’s iconic events and boasts a culture all its own. The craft beer and coffee scene is creative, dynamic, and growing into one of the unique offerings that set the valley apart. Living in Greater Phoenix gives locals the opportunity to experience new and exciting things on a daily basis while also offering an extremely low cost of living compared to peer markets.

 

Greater Phoenix is more affordable for companies and the people that make them successful. Across all major buckets of expenses, Greater Phoenix is less expensive than almost all peer markets.

Cost of living in Phoenix compared to peer markets

Want to see a full list of companies in Greater Phoenix? Download the complete report.