Is the Uber-Economy a Threat to Small Business?

Posted on September 11, 2017 • Category: Economy


Nearly double the number of small business owners in America (26%) believe versus (15%) who don't believe that the digital economy is helping them to grow their business through a combination of new business opportunities, access to customers and the ability to outsource critical skills.

How important is small business in Arizona?

Two reports are of special interest:


1. Arizona Small Business Profile, 2016

Arizona Employment by Firm Size


The challenge is that new small business start-ups in Arizona are barely staying ahead of closings. In the second quarter of 2014, the net gain in new small business start-ups was 209 firms that in turn produced 1,157 new jobs.
U.S. Census Bureau, Business Dynamics Statistics


2. Prosperity Now Scorecard, 2017

In its new report, On Track or Left Behind, the 2017 Prosperity Now Scorecard finds the same challenges. The scorecard separates small business into two categories: microbusiness firms (fewer than five employees) and larger small businesses that range up to 500 employees.

The Arizona scorecard results are mixed:

  • The state’s microbusiness growth rate is currently 15.7 percent, compared to 18.2 percent for the national average. This ranks Arizona 34th among all states.
  • The state’s small business growth rate for firms between 6 and 499 employees is 1.15 percent, compared to 1.47 percent for the national average. This ranks Arizona 51st among all states and the District of Columbia.


26% The number of small business owners in America who believe the international mobile "on-demand" economy is a benefit, compared to 15 percent who see it as a threat.
Is the Growing Uber-Economy a Threat to Small Businesses?  

Gallup Analytics, June 5, 2017


45.1% Percentage of Arizona’s workforce who are employed by small business firms with fewer than 500 employees.
Arizona Small Business Profile, 2016  

U.S. Small Business Administration, Office of Advocacy


15.7% Microbusinesses (fewer than five employees) make up 15.7 percent of Arizona’s small business ownership rate, compared to 18.2 percent nationally, which ranks Arizona 34th in the nation.
On Track or Left Behind?  

Prosperity Now, July 2017 Scorecard