With its robust employment growth rate, lower labor costs, and other advantages, the Phoenix metro was ranked as one of the top cities in the nation to launch a startup.
The Valley came in at No. 7 on the 2022 Best Cities to Start a Business list from Real Estate Witch.
The real estate website analyzed data for 50 cities from the U.S. Census Bureau, Bureau of Economic Analysis, Bureau of Labor Statistics, UpCounsel, Google Trends, U.S. Patent Office and the American Legislative Exchange Council Center for State Fiscal Reform. The data was weighted to emphasize new business applications over the past five years and employment growth in the past 12 months.
Other key criteria included average annual income, filing fees for LLCs and incorporation, corporate tax rate and per-capita number of chief executives.
In Phoenix, employment has been growing at 5.6%, above the national average of 3.90%, and the average annual income of $51,851 came in 18% below the national average of $63,363.
“Such low operation costs allow funding to last longer, giving businesses more time to get off the ground,” the report said.