Arizona cities are not among the best in the country for starting a business according to WalletHub’s in-depth analysis of 2016’s Best Cities to Start a Business.
While Tucson residents will not be surprised to discover that their community is ranked 140 out of the 150 cities, and ranked 148 for business environment, many will be surprised to find that none of Arizona’s communities ranked higher than 109.
The Arizona cities ranking in the largest 150 cities in the USA
| Rank | City | Score | ‘Business Environment’ Rank | ‘Access to Resources’ Rank | ‘Costs’ Rank |
| 109 | Scottsdale, AZ | 40.17 | 95 | 54 | 111 |
| 115 | Tempe, AZ | 39.54 | 143 | 79 | 63 |
| 120 | Phoenix, AZ | 39.24 | 103 | 145 | 69 |
| 121 | Mesa, AZ | 39.11 | 113 | 143 | 52 |
| 130 | Glendale, AZ | 38.68 | 112 | 148 | 62 |
| 136 | Chandler, AZ | 37.79 | 102 | 123 | 97 |
| 138 | Peoria, AZ | 36.95 | 118 | 140 | 86 |
| 140 | Tucson, AZ | 36.89 | 148 | 92 | 39 |
| 144 | Gilbert, AZ | 35.98 | 117 | 129 | 107 |
In order to help aspiring entrepreneurs maximize their chances for long-term prosperity, WalletHub’s analysts compared the startup viability in the 150 most populated U.S. cities. They did so using 16 key metrics such as business competition, financing accessibility and availability of human capital. The top 20 cities in the survey are listed in the table below:
| Best Cities to Start a Business | |||||
| 1 | Sioux Falls, SD | 11 | Winston-Salem, NC | ||
| 2 | Grand Rapids, MI | 12 | Durham, NC | ||
| 3 | Oklahoma City, OK | 13 | Madison, WI | ||
| 4 | Lincoln, NE | 14 | Boston, MA | ||
| 5 | St. Louis, MO | 15 | Lubbock, TX | ||
| 6 | Salt Lake City, UT | 16 | Kansas City, MO | ||
| 7 | Charlotte, NC | 17 | Raleigh, NC | ||
| 8 | Springfield, MI | 18 | Shreveport, LA | ||
| 9 | Tulsa, OK | 19 | Omaha, NE | ||
| 10 | Amarillo, TX | 20 | Austin, TX | ||
Comparing the Best & Worst:
- Toledo, Ohio, has the lowest average annual rent per square foot of commercial office space, $11.63, which is nearly nine times cheaper than in San Francisco, the city with the highest, $99.42.
- Detroit has the lowest labor costs per employee, $26,095, which is about four times lower than in Fremont, Calif., the city with the highest, $103,591.
- Laredo, Texas, has the lowest cost-of-living index, 75, which is nearly three times lower than in New York, the city with the highest, 200.3.
- Irvine, Calif., has the highest percentage of college-educated workforce, 65.6 percent, which is nearly six times higher than in San Bernardino, Calif., the city with the lowest, 11.7 percent.
- Miami has the most startups per 100,000 residents, 246, which is nearly 12 times more than in Columbus, Ga., the city with the fewest, 21.
For the full report and to see where cities rank click here