A recent study has found that Arizona is the hardest state to get occupational licensing in, which has led to a decrease in the number of low-income workers starting their businesses in the state.
YourWestValley.com, an Arizona online news source, reports that the study was conducted by the Goldwater Institute. The Goldwater Institute is an Arizona-based organization, sought to study the effects of licensing practices on small businesses in the state.
Overall, the Goldwater Institute found that the low-income entrepreneurship rate in Arizona is lower than the national average. Low-income entrepreneurs are defined as those who earn less that $36,657 annually.
The low-income entrepreneurship rate is 38% nationally, while it is only 36% in Arizona.
The issue is that occupational licensing is tough to acquire in Arizona. According to the report, the process can be pricey and time-consuming. Licenses can cost up to $209 and can require up to a year of training to obtain.
The problem here is that it’s these low-income entrepreneurs that help bolster a healthy economy — since they can create jobs in fields like landscaping and contracting.
Another issue is that the number of jobs in the United States that require licensing is on the rise. Forty years ago, only 10% of jobs required licensing; that figure is almost 30% today.
Hard-to-acquire licensing is just one more burden on small businesses these days, so it’s hardly surprising that fewer lower income entrepreneurs are starting their businesses in the state of Arizona.
Small businesses that do choose to open in Arizona should work to have a strong online presence, since much of Americans’ shopping habits are in some way impacted by the internet. Working with a local search company can help small businesses and entrepreneursstand out among competitors and big business.
So even if entrepreneurs do decide to weather Arizona’s rough licensing climate, the other elements of running a small business could be getting a little easier.