Starting a Small Business in Arizona

Welcome to the Small Business Startup Arizona Franchise Directory! Here, you’ll find everything you need to begin your journey to business ownership in The Grand Canyon State. If you’re thinking about starting a small business in Arizona, read on for an overview of the state economy. Afterward, explore business opportunities and franchises for sale with our Arizona Franchise Search Tool.

Arizona Industry Trends

If an industry is performing well, business opportunities within it are often worth exploring. Begin your market research with this list of the Arizona economy's largest industries in 2022. Afterward, take your research one step further by investigating niche markets and B2B opportunities within one of these top revenue-generating industries.

1. Tourism (Revenue: $146.2 billion)
2. E-Commerce & Online Auctions (Revenue: $34.4 billion)
3. Property, Casualty & Direct Insurance (Revenue: $30.4 billion)
4. New Car Dealers (Revenue: $30.2 billion)
5. Commercial Banking (Revenue: $26.5 billion)
6. Health & Medical Insurance (Revenue: $23.7 billion)
7. Hospitals (Revenue: $23.6 billion)
8. Public Schools (Revenue: $20.8 billion)
9. Real Estate Loans & Collateralized Debt (Revenue: $19.6 billion)
10. Supermarkets & Grocery Stores (Revenue: $17.4 billion)

Arizona Sector Statistics

When starting a small business in Arizona, gross domestic product (GDP) is another tool that entrepreneurs can use to make investment decisions. Generally, a steadily rising GDP means that people are spending more money and more jobs are being created.

The three sectors that contributed most to Arizona’s GDP in 2022 were Real Estate, Rentals & Leasing; Manufacturing, and Healthcare and Social Assistance. Combined, these three sectors represented 36.7% of the state’s GDP. In 2022, the sectors that contributed most to Arizona’s GDP included:

1. Real Estate & Rental and Leasing (Value: $50.6 billion* | Annual growth: 2.4%)
2. Manufacturing (Value: $34.1 billion* | Annual growth: 3.7%)
3. Healthcare & Social Assistance (Value: $30.3 billion* | Annual growth: 2.6%)
4. Retail Trade (Value: $26.1 billion* | Annual growth: 2.1%)
5. Finance & Insurance (Value: $24.8 billion* | Annual growth: 8.0%)
6. Professional, Scientific & Technical Services (Value: $23.3 billion* | Annual growth: 6.7%)
7. Wholesale Trade (Value: $20.1 billion* | Annual growth: 4.2%)
8. Information (Value: $19.6 billion* | Annual growth: 8.5%)
9. Administration, Business Support & Waste Management Services (Value: $17.6 billion* | Annual growth: 7.5%)
10. Construction (Value: $15.0 billion* | Annual growth: 2.9%)
11. Accommodation & Food Services (Value: $11.2 billion* | Annual growth: 6.7%)
12. Transportation & Warehousing (Value: $8.6 billion* | Annual growth: -1.6%)
13. Management of Companies & Enterprises (Value: $6.4 billion* | Annual growth: 13.3%)
14. Utilities (Value: $6.0 billion* | Annual growth: -1.3%)
15. Other Services (except Public Administration) (Value: $5.7 billion* | Annual growth: 1.7%)

*Approximately

Arizona Population Statistics

A growing population often means greater demand and a steady flow of new customers. If you are undecided about the location of your new business, start by investigating population statistics. Afterward, take your research a step further by exploring population demographics. By doing so, you can decide whether a location is a good match for your target market.

In 2022, counties with the highest populations in Arizona included:

1. Maricopa (Population: 4.8m | Annual growth rate*: 1.9%)
2. Pima (Population: 1.1m | Annual growth rate*: 1.1%)
3. Pinal (Population: 517,000 | Annual growth rate*: 3.7%)
4. Yavapai (Population: 248,300 | Annual growth rate*: 1.7%)
5. Yuma (Population: 224,000 | Annual growth rate*: 1.4%)
6. Mohave (Population: 223,500 | Annual growth rate*: 1.4%)
7. Coconino (Population: 142,200 | Annual growth rate*: -0.1%)
8. Cochise (Population: 128,200 | Annual growth rate*: 0.3%)
9. Navajo (Population: 114,000 | Annual growth rate*: 0.8%)
10. Apache (Population: 72,000 | Annual growth rate*: 0.1%)
11. Gila (Population: 54,800 | Annual growth rate*: 0.4%)
12. Santa Cruz (Population: 47,000 | Annual growth rate*: 0.2%)
13. Graham (Population: 40,100 | Annual growth rate*: 1.1%)
14. La Paz (Population: 21,900 | Annual growth rate*: 1.0%)
15. Greenlee (Population: 9,200 | Annual growth rate*: -0.7%)

*From 2017 to 2022.

Arizona Business Opportunities

We hope this snapshot of the Arizona economy helps as you investigate business opportunities in The Grand Canyon State! Starting a small business in Arizona is an exciting journey, and we know you’re probably eager to get started. But remember, take your time to explore all your options. While you’ll always have the “opportunity” to start your own business, sometimes, it makes more sense to invest in an opportunity that already exists. These are called “Franchise Opportunities,” and they offer several benefits, including the recognition of a well-established brand and a proven track record of success.

To learn more, start by exploring franchise opportunities in Arizona, below!