Startups and entrepreneurs have been flocking to Tucson over the last decade.
The city has received accolades like being among the top-five entrepreneurial hubs in the US and has topped the list of the next 25 up-and-coming tech markets.
And, looking to the future, Arizona is projected to be in the top five states for tech occupation growth between 2020 and 2030–a trend being fueled, in part, by its rapid projected growth in venture capital deals.
But what are the factors that’s historically made Tucson an appealing city for startups and continues to do so?
In this article, we’ll answer those questions and provide real-world examples of startups that have thrived in the city.
7 Reasons Why Tucson is Good for Startups
Tucson may not have a reputation as a startup city like New York, Boston, or Silicon Valley, but it has a long list of reasons why it’s a great city for entrepreneurs to launch their next venture.
Here are seven reasons why Tucson is a great city for startups.
1. Support and Resources
Tucson has a growing startup ecosystem with access to resources and support for small businesses and entrepreneurs in the city.
Three notable organizations include:
- Startup Tucson: Supports entrepreneurs in southern Arizona through education, funding, events, resources, and networking. The Post is proud to partner with Startup Tucson for the Remote Tucson Initiative which supports remote workers who want to call Tucson home.
- University of Arizona Center for Innovation: This startup incubator network supports science and technology startups with connections, incubation programs, and office or lab space. The proximity of the University of Arizona provides Tucson startups with a talented pool of students, faculty, and researchers who can contribute to startups.
- Oro Valley Chamber of Commerce: Founded in 1992, the Oro Valley Chamber of Commerce is dedicated to supporting the growth and business interests of the community.
2. Cost of Living
Tucson has a relatively low cost of living compared to other major cities. This allows entrepreneurs to stretch their funding further and enjoy a comfortable standard of living while pursuing their professional goals.
For comparison, the cost of living in Tucson is 2% lower than in Phoenix (Arizona city), 45% lower than in San Francisco (startup hub), and 5% lower than in Baltimore (comparable population size).
3. Economy
Tucson has a diverse and thriving economy, which creates excellent conditions to grow a startup company. Tucson’s economy scorecard indicates that between 2020-2021, there was a:
- 5.8% business growth.
- 3.2% employment growth.
- 4.3% GDP growth.
- Increase in the median household income.
Further, the city has a diverse economy with opportunities in industries such as aerospace, defense, healthcare, and technology.
4. Professional Community
Entrepreneurs need connections and a strong network of other professionals to be successful in a competitive startup world. Tucson has a supportive community of entrepreneurs and investors who collaborate and support newcomers to the field.
This is evidenced through the growing networks supported by Startup Tucson in addition to:
- TENWEST Impact Festival, which brings together curious and passionate minds in the city.
- IdeaFunding, a pitch competition for entrepreneurs.
- Blax Friday, an organization committed to shining a spotlight on local black businesses.
Another place to find professional community is in coworking spaces like The Post. We’ve created a professional hub that strives to support the growth of local professionals and startups. We do this by providing support and facilitating connections because we know that relationships are key to promoting professional achievement.
5. Sustainability and Innovation
As a city, Tucson has a strong focus on sustainability and innovation. This makes it an attractive location for startups in the green technology and renewable energy sectors. Tucson’s green initiatives include:
- Investing in the broad adoption of solar power as one of 13 designated “solar cities” in the US
- Continuing efforts to maintain low CO2 and low pollution measurements
- Water conservation efforts through technologies like groundwater recharge, rainwater harvesting, and desalination
- Lifestyle options like farmers’ markets, bike paths and trails, and city recycling services.
6. Innovative Workspaces
Choosing the right work environment is essential for entrepreneurial success. Tucson has a number of innovative workspaces that offer top-tier flexible office spaces.
The Post is proud to support entrepreneurs and startups across the city who seek an economically-efficient space surrounded by a like-minded professional community. The Post offers the following entrepreneur-friendly features:
- Spatial diversity: Between shared coworking spaces, dedicated desks, common areas, and private offices, you can choose where and how you work best.
- Productive meeting spaces: Our on-demand meeting rooms are fully equipped and accessible for teams of up to 25 people.
- On-site support: Our team is available to help you with whatever business needs you may have. Virtual office services, such as call forwarding or mail services, are also available for people who need administrative support without a physical office space.
- Events and networking: Meet like-minded professionals at our regular events and professional development opportunities.
7. Quality of Life
Tucson locals enjoy a high quality of life thanks to factors like:
- A warm climate and beautiful natural surroundings.
- A vibrant arts and culture scene.
- A dynamic and exciting culinary scene; Tucson is a UNESCO City of Gastronomy thanks to its culinary heritage.
- A never-ending list of fun things to do and unique only-in-Tucson attractions.
These are all attractive to entrepreneurs and young professionals who are looking for a new city to live and work in.
Thriving Startups in Tucson
These seven factors make Tucson a great place for entrepreneurs to launch their startups. Need more evidence? Just check out these thriving Tucson startup companies:
- AudioEye: Founded in 2005, AudioEye is a technology company that’s dedicated to eradicating every barrier to digital access. They were named one of the 500 fastest-growing technology companies in North America by Deloitte in 2019.
- Simpleview: Starting back in 2001 and forming via a coalition in 2007, Simpleview is a tourism marketing and management software company that helps marketing organizations promote their destinations and manage their operations. Today they have grown to 350+ employees and operate in multiple states and countries.
- Paragon Space Development Corporation: This Tucson-based space technology company specializes in life support systems and thermal control for space missions. Founded in 1993, Paragon has worked on numerous NASA missions and has received multiple awards for its innovative products and services.
- TALK Accounting: Founded in 2016, this company provides a simple software solution that codes and verifies your transactions to automate bookkeeping processes. It was recognized as one of Tucson’s best tech startups in 2022.
This is just a sampling of some of the many amazing startups right here in Tucson. Thanks to the strong economy, reasonable cost of living, and excellent support and community for entrepreneurs, Tucson has a thriving startup scene—and it isn’t going anywhere anytime soon.
If you’re in search of a positive professional workspace to launch your own entrepreneurial endeavors, you’ll find it at The Post. Book a tour of The Post today.