Phoenix's small business climate received a mixed bag of grades from a California group that studies startups, but did well enough to finish in the top half of the ranking.
San Francisco-based Thumbtack said the Valley's overall landscape merited a "B-" grade, down from a "B+" in 2018, within its Small Business Friendliness Survey.
The rankings are based on surveys of 5,000-plus small business owners.
Thumbtack quizzed respondents on such categories as licensing requirements, tax regulations and the ease with which they can hire workers.