Small business owners gave Phoenix a B- for its business friendliness, ranking it in the top 50% of cities nationwide, according to Thumbtack’s annual Small Business Friendliness Survey. Complete results for Phoenix are published at

Nearly 18,000 U.S. small business owners responded to this year’s survey, including 476 in Phoenix and 597 in Arizona. The study asked respondents to rate their state and city governments across a broad range of policy factors. Thumbtack then evaluated states and cities against one another along more than a dozen metrics.

“Small business owners on Thumbtack have consistently told us that they welcome support from their governments but are frequently frustrated by unnecessary bureaucratic obstacles,” said Jon Lieber, Chief Economist of Thumbtack. “Small businesses in Phoenix gave the city solidly average grades across the board for its regulatory environment.”

“Arizona makes it very easy to start a business,” commented a residential cleaning service owner in Phoenix. “The state has many programs to assist you on your path.”

Key Findings for Phoenix:

  • Phoenix earned a B- overall for small business friendliness, ranking #42 out of 95 cities ranked this year.
  • Phoenix’s overall grade slipped slightly from last year’s rating, when it earned a B.
  • Phoenix’s best grade was a composite B for its regulatory environment, which included licensing, tax, and labor regulations.
  • Arizona’s best grade was a B+ for its zoning regulations, which contributed to a composite B for its overall regulatory environment.
  • The worst score for Phoenix was C for training and networking programs.
  • Tucson earned an overall friendliness score of a C-, coming in behind Phoenix’s B- overall.