47.5%
United States
30.2 Million
Small Businesses
Of United States Businesses
Small Business Employees
Of United States Employees
99.9%
30.2 Million
EMPLOYMENT
1.9 million
Net New Jobs
Minority-Owned
Businesses
Small Business
Exporters
DIVERSITY
8.0 million
TRADE
287,835
Overall United States Economy
Employment
fewer than 20
20 to 99
100 to 499
more than 500
0
20M
40M
60M
80M
100M
120M
2000 2005 2010 2015
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet
dolore magna aliquam erat 1.1 million volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcor-
per suscipit lobortis nisl ut aliquip ex ea commodo consequat.
Lorem ipsum dolor sit amet, consectetuer adipiscing
elit, sed diam 58.9% nonummy nibh euismod tincid-
unt ut laoreet dolore.
(Source: SUSB)
Ut wisi enim ad minim veniam, quis nostrud exerci
tation ullamcorper 1.1 million suscipit lobortis nisl ut
aliquip ex ea commodo consequat.
(Source: SUSB)
Dolor sit amet, consectetuer adipiscing elit, sed diam
nonummy nibh 33.3% euismod tincidunt ut laoreet
dolore magna aliquam erat volutpat.
(Source: SUSB)
Dolor sit amet, consectetuer adipiscing elit, sed diam
nonummy nibh 47.5% euismod tincidunt ut laoreet
dolore magna aliquam.
(Source: SUSB)
2019 Small Business Profile
RESEARCH OUTREACHREGULATION
U.S. SMALL BUSINESS ADMINISTRATION
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore
magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut
aliquip ex ea commodo consequat.
Figure 1: United States Employment by Business Size
Consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat
volutpat. Consectetuer adipiscing elit, sed diam.
Arizona
571,495 Small Businesses 1.0 million Small Business Employees
99.4% of Arizona Businesses 43.7% of Arizona Employees
EMPLOYMENT
43,792
net new jobs
DIVERSITY
146,664
minority-owned
business employees
TRADE
6,462
small business
exporters
Overall Arizona Economy
In the third quarter of 2018, Arizona grew at an annual rate of 4.3%, which was faster than the overall US growth rate of
3.4%. Arizona’s 2017 growth rate of 3.1% was down from the 2016 rate of 3.2%. (Source: BEA)
In February 2019, the unemployment rate was 5.1%, up from 4.8% in February 2018. This was above the February 2019
national unemployment rate of 3.8%. (Source: CPS)
Employment
Figure 1: Employment by Business Size (Employees)
fewer than 20
20 to 99
100 to 499
more than 500
0.0
500.0K
1.0M
1.5M
2.0M
2000 2005 2010 2015
Arizona small businesses employed 1.0 million people, or
43.7% of the private workforce, in 2016. (Source: SUSB)
Firms with fewer than 100 employees have the largest
share of small business employment. Figure 1 provides
further details on firms with employees. (Source: SUSB)
Private-sector employment increased 3.4% during the 12-
month period ending in February 2019. This was above
the increase of 3.1% during the prior 12-month period.
(Source: CPS)
The number of proprietors increased in 2017 by 2.0% rel-
ative to the previous year. (Source: BEA)
Small businesses created 43,792 net jobs in 2016. Firms
employing fewer than 20 employees experienced the
largest gains, adding 25,045 net jobs. The smallest gains
were in firms employing 100 to 499 employees, which
added 9,187 net jobs. (Source: SUSB)
The Small Business Profiles are produced by the US Small Business Administrations Oice of Advocacy (http://advocacy.sba.gov). Each re-
port incorporates the most up-to-date government data to present a unique snapshot of small businesses. Small businesses are defined
for this profile as firms employing fewer than 500 employees. Net small business job change, employees of minority-owned businesses,
and exporter share statistics are based on the 2016 Statistics of US Businesses (SUSB), 2016 Annual Survey of Entrepreneurs (ASE), and
2016 International Trade Administration (ITA) data, respectively.
SBA Oice of Advocacy 13 Arizona Small Business Profile, 2019
Income and Finance
The number of banks decreased by 2 between June 2016 and June 2017 to 16 banks. (Source: FDIC)
In 2017, 131,014 loans under $100,000 (valued at $1.9 billion) were issued by Arizona lending institutions reporting
under the Community Reinvestment Act. (Source: FFIEC)
The median income for individuals self-employed at their own incorporated businesses was $50,801 in 2017. For indi-
viduals self-employed at their own unincorporated firms, this figure was $23,631. (Source: ACS)
Median income represents earnings from all sources. Unincorporated self-employment income includes unpaid family workers, a very
small percent of the unincorporated self-employed.
Employer Business Owner Demographics
Figure 2: Arizona Employees per Business by Owner’s Demographic, 2016
Male
Female
Nonminority
Minority
Nonveteran
Veteran
Some other race
Native American-Alaskan
Hispanic
Hawaiian-Pacific Islander
Asian
African American
All Firms
0 2 4 6 8 10 12
Figure 2 shows the average number of employees per employer business by owner’s demographic group according to the 2016 Annual
Survey of Entrepreneurs (ASE). Unshaded bars display US values; data were withheld because they do not meet Census Bureau publica-
tion standards or could disclose information regarding individual businesses.
Turnover among Establishments with Employees
Figure 3: Arizona Quarterly Startups and Exits
Startups
Exits
Net New Establishments
-4,000
-2,000
0
2,000
4,000
1995 2000 2005 2010 2015
In the third quarter of 2017, 4,661 establishments started
up, generating 18,394 new jobs in Arizona. Startups are
counted when business establishments hire at least one
employee for the first time. (Source: BDM)
In the same period, 4,027 establishments exited resulting
in 13,360 jobs lost. Exits occur when establishments go
from having at least one employee to having none, and
then remain closed for at least one year. (Source: BDM)
Figure 3 displays quarterly startups and exits from 1993 to
2017. Each series is smoothed across multiple quarters to
highlight long-run trends. (Source: BDM)
The BLS data covers only business establishments with employees.
BLS refers to startups as births and exits as deaths. These terms are
distinct from the BLS openings and closings categories. Openings
include seasonal re-openings and closings include seasonal shut-
terings. Quarterly startup and exit values may not align with Figure
3 due to smoothing.
SBA Oice of Advocacy 14 Arizona Small Business Profile, 2019
International Trade
A total of 7,405 companies exported goods from Arizona in 2016. Of these, 6,462, or 87.3%, were small firms; they
generated 24.7% of Arizona’s $19.6 billion in total exports. (Source: ITA)
Small Business Employment by Industry and Self-Employment by County
Table 1: Arizona Employment by Industry, 2016
Industry
Health Care and Social Assistance
Accommodation and Food Services
Construction
Retail Trade
Professional, Scientific, and Technical Services
Administrative, Support, and Waste Management
Other Services (except Public Administration)
Manufacturing
Wholesale Trade
Educational Services
Real Estate and Rental and Leasing
Finance and Insurance
Arts, Entertainment, and Recreation
Transportation and Warehousing
Information
Management of Companies and Enterprises
Utilities
Mining, Quarrying, and Oil and Gas Extraction
Agriculture, Forestry, and Fishing and Hunting
Industries not classified
Total
Small Business
Employment
163,158
161,202
115,559
83,493
82,386
78,313
74,969
65,118
46,866
29,971
28,924
28,118
28,017
26,208
12,965
7,984
2,437
1,776
1,367
397
1,039,228
Total Private
Employment
359,183
290,496
141,740
320,561
148,267
270,730
89,232
144,208
93,790
60,892
46,609
147,682
47,840
89,655
48,161
54,879
12,388
11,178
1,521
397
2,379,409
Small Business
Employment Share
45.4
55.5
81.5
26.0
55.6
28.9
84.0
45.2
50.0
49.2
62.1
19.0
58.6
29.2
26.9
14.5
19.7
15.9
89.9
100.0
43.7
Figure 4: Arizona Self-Employment Rates by County, 2017
Self-Employment
(%)
5.0 up to 7.6
7.6 up to 9.1
9.1 up to 10.2
10.2 to 14.9
SBA Oice of Advocacy 15 Arizona Small Business Profile, 2019
Small Businesses by Industry
Table 2: Arizona Small Businesses by Industry and Firm Size, 2016
Industry 1–499 1–19 Employees Nonemployer Total Small
Employees Firms Firms
Professional, Scientific, and Technical Services 15,771 14,701 66,495 82,266
Other Services (except Public Administration) 9,968 9,163 67,540 77,508
Real Estate and Rental and Leasing 7,249 6,918 61,422 68,671
Construction 11,618 10,265 39,010 50,628
Health Care and Social Assistance 13,430 11,852 36,753 50,183
Retail Trade 9,440 8,448 39,782 49,222
Administrative, Support, and Waste Management 6,840 5,949 40,649 47,489
Transportation and Warehousing 2,566 2,155 33,654 36,220
Arts, Entertainment, and Recreation 1,619 1,304 24,449 26,068
Finance and Insurance 4,786 4,462 14,563 19,349
Educational Services 1,809 1,395 13,097 14,906
Accommodation and Food Services 8,431 6,055 6,312 14,743
Wholesale Trade 4,667 3,791 7,759 12,426
Manufacturing 3,768 2,872 7,289 11,057
Information 1,167 971 6,006 7,173
Agriculture, Forestry, and Fishing and Hunting 204 185 2,366 2,570
Mining, Quarrying, and Oil and Gas Extraction 143 110 344 487
Utilities 132 109 325 457
Total 103,680 91,032 467,815 571,495
Tables 1 and 2 display data from the 2016 SUSB. Table 2 includes additional data from the 2016 Nonemployer Statistics (NES). Figure 4
provides estimates of the rate of self-employment among employed civilians, 16 years and over, including both incorporated and unin-
corporated businesses, from the 2017 American Community Survey (ACS).
References
The Small Business Profiles, source data, and methodology are available at https://go.usa.gov/xmb5R.
ACS American Community Survey, US Census Bureau
ASE Annual Survey of Entrepreneurs, US Census Bureau
BEA Bureau of Economic Analysis, US Department of Commerce
BDM Business Employment Dynamics, BLS
BLS Bureau of Labor Statistics, US Department of Labor
CPS Current Population Survey, BLS
FDIC Call Reports, Federal Deposit Insurance Corporation
FFIEC Federal Financial Institutions Examination Council
ITA International Trade Administration, US Department of Commerce
NES Nonemployer Statistics, US Census Bureau
SUSB Statistics of US Businesses, US Census Bureau
SBA Oice of Advocacy 16 Arizona Small Business Profile, 2019