News Summary
Arizona has secured the No. 12 position in CNBC’s Top States for Business 2025 rankings, despite experiencing slight declines in some metrics. The Greater Phoenix area continues to showcase entrepreneurial strength with cities like Scottsdale and Chandler ranking high for business opportunities. However, Arizona’s standing has dropped in other assessments like the Chief Executive rankings. The state remains a vital hub for business activity with numerous cities recognized as suitable for startups, despite facing challenges.
Arizona Maintains Strong Business Rankings Despite Slight Declines, Remains in Top Echelons for 2025
Arizona secured the No. 12 position in CNBC’s America’s Top States for Business 2025 rankings, released on July 10. The rankings evaluate crucial factors companies consider when selecting a site for operations. This assessment incorporates 135 metrics grouped into 10 categories: economy, infrastructure, workforce, cost of doing business, business friendliness, quality of life, technology and innovation, education, access to capital, and cost of living.
In addition to the CNBC rankings, Arizona’s Greater Phoenix area displayed strengths in entrepreneurial opportunities, with six cities ranked among the top 25 best large cities in the United States to start a business, according to WalletHub. Scottsdale emerged as the highest-ranked Arizona city at No. 14, followed closely by Chandler at No. 17, Glendale at No. 18, Mesa at No. 20, Phoenix at No. 21, and Gilbert at No. 24. Tucson, however, was the lowest-ranking Arizona city on the WalletHub list, landing at No. 50.
City Rankings and Metrics
Scottsdale excelled in several metrics, ranking 5th in access to resources, 12th in business environment, and 78th in business costs. Phoenix’s rankings included 25th in business environment, 40th in business costs, and 52nd in access to resources. On the other hand, Tucson, while ranking 10th nationally for business costs, fell short in 81st place for access to resources.
The WalletHub report identified all top five cities for starting a business as being located in Florida, with Orlando leading that list.
Changes in Business Environment Rankings
Despite its relative strength in business metrics, Arizona’s business climate saw some declines in other rankings. The Chief Executive Best & Worst States for Business rankings indicated that Arizona fell from No. 4 to No. 10 in their 2025 assessment. This drop was noted as a significant decrease, with Arizona recording the second-largest dip among the states surveyed, which involved over 650 CEOs.
Continued Opportunities for Business Growth
Nevertheless, Arizona remains a prominent player in terms of business opportunities, with nearly two dozen small cities marked as some of the best in the nation. Notably, Prescott was ranked the highest among these small cities at No. 49. Other small cities achieving recognition include Prescott Valley at No. 86, Flagstaff at No. 190, Florence at No. 196, and Buckeye at No. 212.
In contrast, St. George, Utah, claimed the top spot nationally, achieving a significantly higher score of 64.61 compared to Arizona’s small cities’ scores.
Conclusion
Overall, while Arizona faced some challenges in its business environment, it continues to hold a strong position nationally, especially within the Greater Phoenix area. The state’s rankings showcase a mixed landscape but reaffirm its commitment to fostering a vital business climate.
Deeper Dive: News & Info About This Topic
- ABC15: Arizona Holds Steady in CNBC’s Top States for Business Ranking
- Wikipedia: Business in the United States
- ABC15: Arizona Slips in CEO Ranking of Best States for Business
- Encyclopedia Britannica: Business
- KTAR: Best Places to Start a Business in Arizona
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
