Arizona Entrepreneurs:
Critical Factors To Success

Copyright April 2002 all rights reserved worldwide by Profit Dynamics Inc., Dee Power and Brian Hill. Permission is granted to reproduce all, or part of this report as long as credit is given to Profit Dynamics, Dee Power and Brian Hill.

Arizona's entrepreneurs are increasingly vital contributors to the state's economic growth and prosperity. Emerging enterprises lead the way in technical innovation, creation of high-paying jobs, and in diversifying Arizona's economy.

Entrepreneurs choose to start or move their companies to Arizona for a host of reasons, including the ideal climate, the proximity to major markets like California and Mexico, the reasonable wage scale and cost of living, the growth in population and therefore an available skilled workforce. Entrepreneurs view Arizona as a wonderful place to be, and are excited about the future.

But we also must recognize that much needs to be done before our state can join the leaders in entrepreneurial activity and technology. The industries that built the state's prosperity in the latter half of the 20th Century, tourism and real estate, will not be sufficient, by themselves, to allow us to compete in a global marketplace driven by information technology.

This survey was organized on the premise that the people who know best what ingredients need to be in place in order for Arizona to succeed are those individuals striving, and often struggling, to build their companies in Arizona right now-the Entrepreneurs. The report that follows represents the entrepreneurs' consensus blueprint for helping Arizona reach its economic potential in the years to come.

And the entrepreneurs who participated in this survey sincerely hope there are people in government, the media and inside the large corporations who will listen to what they have to say.

Arizona Entrepreneurs: Critical Factors To Success" was written by Dee Power and Brian Hill, Founders of Profit Dynamics Inc., Fountain Hills, AZ. Authors of Attracting Capital From Angels: How Their Money and Their Experience Can Help You Build a Successful Company, John Wiley & Sons 2002 and Inside Secrets To Venture Capital, John Wiley & Sons 2001.

Table of Contents

Sponsors of the Survey

Supporters of the Survey

Methodology

Critical Factors To Success
The Top Five Factors, Comparative Rating of all Factors, The Top Priorities, Lover Priorities

Capital Access in Arizona
How Much and From Whom, Difficulty of Finding Capital, Investment Seed and Start-up Capital, Entrepreneurs Recommendations To Make The Process Easier

Assistance to Entrepreneurs
Mentors and Guidance, State and City Support Programs, Professional Services Satisfaction, The Media, Quality of Management

the Role of State Government in Arizona to Nuture a Strong Entrepreneurial Community: What do entrepreneurs want?

Other Important Issues To Entrepreneurs

Resources For Arizona Entrepreneurs

These resources for Arizona entrepreneurs are not part of the survey but may be helpful to entrepreneurs. You can find:

Venture Capital firms located in Arizona

Organizations for networking and information

Venture Capital firms that have invested in companies located in the Southwest

Survey of Venture Capital companies and why they do or don't invest in Arizona.

Angel Networks

Venture Capital Conferences

Business or Technology Incubators

Alternatives to traditional venture capital financing