The Arizona tech community has experienced significant growth, thanks to companies moving and expanding here. Startups are another big reason for a more vibrant tech scene, as many entrepreneurs are purposely coming to Arizona to start their tech companies.
The numbers support this growth. According to the recently revised U.S. Census Bureau’s 2018 Business Dynamics Statistics, the Phoenix metro area is ranked seventh for large metros with the most startup business activity. Phoenix, Mesa and Chandler have a 9.63% startup formation rate, with 6,108 startups formed annually.
These startups created 37,785 new jobs in 2018, which made up 14.02% of all new jobs.
In 2018, more than 420,000 startups were formed across the country, resulting in 2.2 million new jobs.
Historically, recessions and economic downturns hinder entrepreneurs from venturing into new businesses. Following the Great Recession in 2008, the overall startup formation rate dipped to 8% and stayed around that percentage over the next decade.
The Covid-19 pandemic represents another economic downturn for many industries. However, there seems to be potential in industries that focus on online settings, like e-commerce and online collaboration tools. And, like we covered in this story a few days ago, Arizona is expected to see an increase in jobs over the next 8 years, and the flourishing tech industry has a lot to do with that.
So, to all those with a startup idea, go for it. The Arizona tech community will support you in that. And, if you’re looking for funding, check out this pitch competition.