Arizona Small Businesses Face Federal Budget Cuts

Categories: Arizona Business NewsArizona State News

A community gathering to support local Arizona businesses.

News Summary

Arizona’s small business community is at risk due to impending federal budget cuts that may eliminate vital support programs. Local First Arizona is encouraging shoppers to focus on supporting local businesses during events like Amazon Prime Days. Additionally, the National Federation of Independent Business is working to preserve the Small Business Tax Deduction, which could significantly impact job creation and economic growth in the state. Collaborative efforts by organizations such as ASBA and ACA through the SCALE program aim to provide essential resources and support for local entrepreneurs navigating these challenges.

Arizona is facing potential challenges for its small business community due to anticipated federal budget cuts that threaten long-standing support programs. Industry insiders are voicing their concerns, highlighting the critical nature of these resources for local entrepreneurs who rely on them to flourish.

Among the organizations advocating for these businesses, Local First Arizona is urging Arizonans to prioritize small, local enterprises, particularly during the upcoming Amazon Prime Days, set to begin on Tuesday. In a proactive measure to support local shopping, Local First Arizona has published a comprehensive directory featuring thousands of Arizona-based businesses, emphasizing the impact consumer choices can have on the local economy, according to its leadership.

The small business sector traditionally experiences a slowdown during the summer as many residents leave the Valley to escape the heat. Despite this, businesses like Zia Records, which has been a staple in Arizona for 45 years, continue to provide vital employment opportunities, employing up to 180 people and allowing customers to sell pre-owned goods. This engagement is significant in fostering a vibrant community and local economy.

In response to the ongoing challenges faced by small businesses, the National Federation of Independent Business (NFIB) has introduced two digital tools aimed at showcasing the economic impact of the 20% Small Business Tax Deduction in Arizona. These tools include an interactive map that illustrates potential job creation and a tax calculator designed for small business owners. Research suggests that if the tax deduction is preserved, Arizona could see the addition of 49,404 jobs and an increase of $2.9 billion in its GDP over the next decade. Furthermore, a small business owner who has a personal income of $75,000 and qualified business income of $150,000 could be at risk of facing a tax increase exceeding $13,000 if the deduction were to lapse.

To bolster support for local businesses and entrepreneurs, the Arizona Small Business Association (ASBA), in partnership with the Arizona Commerce Authority (ACA), has initiated the SCALE program. This program stands for Strategic Coaching for Advancing Local Entrepreneurs and is designed to provide expert-led education and tailored coaching to small businesses.

SCALE offers two key components: the Business Roadshow, which conducts workshops aimed at underserved communities to build foundational skills, and SCALE to Profitability, which delivers in-depth coaching over a six-month period. A highlight of the initiative includes a Pitch Day event where entrepreneurs can present their refined business models to secure funding from investors and banking institutions, providing critical support for their operations.

Aiming to enhance the impact of the SCALE program, ASBA is actively seeking community hosts and industry experts to get involved in this initiative. The association remains dedicated to advocating for small businesses in Arizona and providing essential networking opportunities, education, and resources necessary for their success.

Overall, these developments underscore the precarious landscape for small businesses in Arizona as they navigate potential federal budget cuts, seasonal challenges, and the necessity for ongoing support and education. The collaborative efforts of organizations like Local First Arizona, NFIB, and ASBA are critical in mobilizing resources and promoting a resilient business environment for local entrepreneurs.