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Investing in Phoenix Businesses Strengthens the Community

Phoenix is a buzzing location in Arizona, also popularly called the ‘Valley of the Sun.’ With an average of 300 days of sunshine and a temperature of 75 degrees, it’s easy to see why this narrative is sound. However, the location’s climate is not the only thing that makes it famous. Great Phoenix is also one of the most populous locations in the United States. It is a fast-paced and dynamic business location richly blessed with opportunities benefiting enterprises and its workforce. Its economic vibrancy has snowballed favorably, strengthening its community. What’s the direct link between its business vibrancy and thriving community? Let’s find out.

The Business Spotlight in Phoenix, Arizona

Phoenix, Arizona, recorded a population of 1.61 million people in 2022, securing its position as the fifth most populous city in the country. The growing population is one of the reasons it has become a beacon for businesses to grow and thrive. Over the last decade, the population has surged by 33%, and predictions are that it could move from its current position to the third-largest metropolitan area by 2040.

It’s common knowledge that companies and enterprises look for prime locations with high population densities to set up their businesses. Why? They want to access the labor required to produce goods and services while ensuring a high demand. 

Aside from the labor force and demand, Phoenix is also famous for its welcoming environment for businesses, particularly regarding taxes and incentives. Arizona offers a lot of incentives, including tax relief and other opportunities, which help grow and empower businesses to invest even more in the region’s infrastructure. The sales tax rate in Phoenix is at an average of 2.3%, ranking it the 14th best city in terms of low tax liabilities. Companies in the city enjoy these benefits because they lower operational costs, making the location an advantageous business environment. 

The positive of this is that as much as businesses are benefiting from this system, the community also has a lot more to profit from. The longevity and success of small businesses can help push growth in employment and livelihood and increase local revenue. Increasing the local revenue and ensuring a safe business environment helps redirect commercial investment toward building a friendly, more cohesive community. For example, a green grocer’s store that employs teenagers and young adults to fulfill various technical and management roles can set the standards of how a local business ought to operate but also enable a sense of community between the team, the store, and the wider community who shop there.

How Phoenix’s Business Climate Helps Its Community 

Employment

Unemployment in Phoenix lowered to 3.5% in 2024, which is a decent improvement from its long-term average of 5.38%. There has been constant employment growth in this location, there has been constant growth, which is a direct result of its evolving business environment and the opportunities it presents. A lot more of this was revealed in DataUSA’s geographic profile, which details insights on some of the leading employment sectors in the city, such as health care, social assistance, retail trade, and construction. The retail trade section alone had employed over 95,000 people at the time of publication. Some of the industries with the highest contribution under the section are finance startups like online trading, investment firms, insurance markets, accommodation, and local food services. 

This data shows that the idea of local businesses boosting employment is not only speculation but a fact. Growing enterprises are the easiest entry points to creating job opportunities — especially for locals — since most of them have lower barriers to entry and are more close-knit than bigger businesses. SimplyHired, a US-based employment website, publishes several job openings from small businesses in the city, some of which include Firecreek Coffee, King Wong, St Joseph Hospital, and Ace Hardware. Most of these businesses pay fairly and are labeled with the “quick apply” feature, backing up the claim of a lower entry barrier. Since most of these brands also have fewer workers, everyone knows each other, and there is room for improved employee relationships, and enough opportunities to scale. At the same time, the easy recruitment processes and accessibility to labor help businesses increase productivity and output.

Boosting the Economy

The role of small enterprises in economies can never be overstated, and those who benefit from better economic conditions are the people in the community. About 34 million are in the United States, representing 43.5% of the country’s gross domestic product. Their roles in job creation and innovation are vital to economic development, and they have succeeded over the years. Despite having fewer resources and numbers, it is commendable that they are credited with more of the new jobs created in recent times. The four main factors of economic growth in every location are land, labor, capital, and entrepreneurship — startups easily contribute to at least two of these elements. 

Increase in Local Revenue

Revenue from most businesses mostly finds its way back to the community. It’s a supply and demand chain system. They pay local taxes, purchase products, and hire community service providers. Local taxes are generally used to fund services like education and health, road maintenance, police and field departments, and other projects that directly benefit the community. So, by paying these fees, local businesses indirectly contribute to city developments. Revenues spent on hiring local services and purchasing raw materials are also retained, increasing the livelihood and earnings of citizens. 

Generating Ripple Effects Through Local Business Supports

The results from local business support extend far beyond the day-to-day transactions. It can ricochet, creating ripple effects like job empowerment, economic development, and community growth. Each daily purchase and production contributes to a cycle of reinvestment where businesses hire more workers, pay taxes, and become building blocks of a better system. This interconnected growth is important for every city and is one of the reasons Phoenix continues to expand as a leading business hub. 

 
 
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