At the recent EO Accelerator event in Phoenix, one theme stood out clearly: Arizona is full of visionary founders who want their businesses to scale with less chaos and more clarity.
But both research and real-world conversations confirm what many of you already feel: the same roadblocks keep showing up for small business owners across our state.
Here’s a closer look at the top three challenges Arizona small businesses are facing in 2025, why they matter, and what you can do to address them.
Recent data from In Business PHX indicate that Arizona small businesses are being disproportionately impacted by inflation compared to other states. The report highlights:
Electricity costs have increased by nearly 27%
Gas prices up almost 75% since pre-pandemic averages
Property values and rents are climbing, especially in the Phoenix metro area
For small businesses, this makes predictable margins difficult. You might be growing revenue but still feel strapped for cash because costs keep shifting.
What helps: clarity in processes, stronger expense tracking, and better forecasting. When systems are weak, every price increase hits harder. When systems are strong, you have data to guide smarter decisions
Nearly 40% of Arizona small businesses report they cannot fill open positions, especially in key roles, according to the Sedona Chamber of Commerce. This labor shortage slows growth, increases burnout among existing staff, and leaves many founders stuck back in the day-to-day.
Growth stalls because there aren’t enough people to carry the load
Existing staff burn out, leading to even higher turnover
Owners get pulled back into day-to-day firefighting
What helps: clear role accountability, better onboarding systems, and leadership support. When employees know exactly what they own and have processes to follow, retention improves and the owner isn’t the bottleneck.
The good news: 73% of Phoenix-area small businesses grew last year. The challenge: many are still falling short of their goals, according to In Business PHX. Owners cite competition, supply chain disruptions, inflation, and limited access to funding as the biggest factors holding them back.
Local and national competition
Supply chain disruptions
Inflation’s ripple effect
Difficulty accessing funding
In other words, growth is happening—but slower than it should.
What helps: translating visionary goals into actionable systems. Vision without execution leads to frustration; vision with aligned processes and accountability creates momentum.
If these challenges feel familiar, you’re not alone. But here’s the good news: there are proven ways to tackle them.
That’s why we created our Operational Discovery service. It’s designed for Arizona founders who want to:
Pinpoint exactly where inefficiencies and risks are hiding
Get a personalized roadmap of the next steps to strengthen their business
Put practical fixes in place—not just ideas, but action you can see working
If these challenges sound familiar, you’re not alone — most Arizona founders are facing some combination of rising costs, hiring headaches, and slower-than-expected growth. The difference between staying stuck and moving forward often comes down to one thing: having the right systems and accountability in place.
Your vision is strong. Let’s make sure your business has the systems, people, and clarity to keep up with it.