Arizona small businesses are doing something right, at least according to the Phoenix Business Journal. The Journal reported on a study comparing the national average of small business responses to questions about small business profitability, employment change, and revenue change from the Federal Reserve’s Small Business Credit Survey with local answers from Local First Arizona.
Local small businesses beat the national average on several of the criteria, with only 18 percent of local businesses operating at a loss compared to 27 percent nationally; and 61 percent of local businesses operating at a profit compared to 53 percent nationally.
The comparison also showed that Arizona small businesses had fewer hiring decreases at 12 percent versus 18 percent nationally, and had more hiring increases, with 38 percent of Arizona businesses hiring more employees compared to only 35 percent nationally.
Local First attributed this strong growth of local small businesses to increased capital and support from local banks.
“For Local First Arizona, we have maintained that the solution to increasing access to capital has been through support of local banks and credit unions, as they are more likely to lend to local businesses,” communications director for Local First Arizona Erica Fetherston told the Phoenix Business Journal.