We Asked 200 Tucson’s Small Businesses What They Needed. They Told Us — and We Owe Them a Better System.

Behind every storefront light left on late at night is a family taking a risk. In Tucson, where nearly 80 percent of businesses have ten employees or fewer, that risk defines our local economy. We often say small businesses are the backbone of our city — at ribbon cuttings, in speeches, and in policy conversations. But too often, the systems designed to support them are created without taking the time to truly listen to their experiences.

In 2022, the Tucson IDA initiated a Capital Landscape Study, speaking with more than 80 entrepreneurs about gaps in access to capital. That work led directly to the creation of the AVANZA Loan Fund, which has since deployed nearly $4 million in character-based loans to small businesses across our community. 

But capital, we learned, is only part of the story.

Wanting to dig deeper, we once again leaned into data — this time engaging 172 local small businesses around a simple question: what is it actually like to do business in Tucson? Nearly two hundred entrepreneurs participated, representing storefronts and home-based businesses, startups and legacy family enterprises, and everything in between. We asked about their challenges, frustrations, and what kind of support would genuinely help them grow.

What they shared with us was honest, generous, at times difficult to hear, and at times encouraging that we are heading in the right direction.  

I have worked in and around startups and small businesses for the past eight years, and during that time Tucson’s small business ecosystem has changed meaningfully. Over the past decade, we have seen greater collaboration among partners, an expansion of available programs, and improved accessibility for Spanish-speaking entrepreneurs.  That collective investment shows up in the data. When asked how supported they feel by the City of Tucson, the vast majority of respondents reported feeling “supported” or “very supported.” That is important progress  and worth acknowledging at a time when we often over emphasize negative news.

Another major shift over the past four years has been the growth of nontraditional capital opportunities. Both the City of Tucson and the Tucson IDA each committed $1.5 million to support Groundswell’s AVANZA Loan Fund while the Governor’s Office and the Arizona Office of Economic Opportunity launched the state’s first Microbusiness Loan Fund, providing matching capital and technical assistance for microlenders across Arizona. 

In Southern Arizona, Community Investment Corporation (CIC) and Groundswell Capital partnered to secure the region’s largest allocation under the program and have since met or exceeded capital deployment benchmarks. CIC was already gaining national recognition for its BIPOC Loan Fund and innovative revenue-based financing model. Startup Tucson launched the Rooted in AZ Fund, creating relationship-based capital for Indigenous entrepreneurs. Groundswell Capital began offering zero-percent interest loans for graduates of workforce development programs in partnership with Vantage West Credit Union and the Federal Home Loan Bank of San Francisco.These efforts mattered. For the first time, entrepreneurs reported increased confidence in their ability to access capital — a notable shift from 2022, when we first began studying capital gaps in the community.

And yet, even with this progress, the data revealed critical areas where our ecosystem still falls short. 

Entrepreneurs described a system that feels fragmented, confusing, and difficult to navigate — especially for those without attorneys, accountants, or insider knowledge. Many shared that they didn’t know where to begin. Others had heard of programs but weren’t sure which applied to their business. Some had tried to access support before and walked away discouraged, not because the programs were ineffective, but because the process itself felt overwhelming.

One business owner put it plainly: “There are a lot of resources, but it’s hard to know where to go.” Another echoed, “I’ve heard about a few programs, but I’m unsure how to access them or what’s available to a business like mine.”

Those responses affirmed exactly why, in October of 2025, we opened the Tucson Small Business Center, a public-private partnership between the City of Tucson, Groundswell Capital, and the Tucson IDA. Since then, Growth Partners Arizona and the Chamber of Southern Arizona have joined the effort to support small businesses through this collaborative center. 

At its core, the Center is built on a simple understanding: access isn’t just about money or eligibility. It’s about clarity, trust, and navigation — all essential conditions for capital investment to succeed. Without education, coaching, and trusted guidance, even well-designed financial tools can feel intimidating rather than empowering.

Through the Tucson Small Business Center, entrepreneurs can access free weekly classes, one-on-one coaching, networking opportunities, and pathways to both grant and loan capital. Just as importantly, the Center serves as a front door — helping business owners understand what resources exist in Tucson and connecting them through warm referrals to the many exceptional ecosystem partners across our community.

The feedback from entrepreneurs was remarkably consistent in one area: the kind of education they want. They were not asking for abstract entrepreneurial theory. They were asking for the fundamentals — pricing, costing, cash flow, bookkeeping, taxes, and loan readiness. In short, they were asking for the tools needed to run a sustainable business.

That insight arrives at an important moment.

This February, in partnership with Growth Partners Arizona, we will launch the Financial Literacy Office, or “FLO”, at the Tucson Small Business Center. FLO is designed to meet entrepreneurs where they are, beginning with an assessment that guides a customized education and coaching pathway. Business owners can move at their own pace through bilingual financial literacy coursework, while those seeking deeper training can enroll in CORE+, an advanced intensive program that culminates in a professional certification from Arizona State University.

We are deeply grateful to the nearly 200 small business owners who took the time to share their experiences. Their feedback is already shaping how we invest, partner, and design programs across our ecosystem.

The data confirms that Tucson has made meaningful progress over the past decade. But it also reminds us that building a strong local economy is not about claiming to have all the answers. It is about committing to listen, to learn, and to adjust.

If we want small businesses to thrive, listening cannot be a one-time exercise. It must be a practice.

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About Groundswell Capital

Groundswell Capital is a mission-driven lending nonprofit dedicated to sustainable economic growth, focusing on clean energy, small business financing, and community development. By aligning financial returns with environmental and social responsibility, Groundswell Capital is helping to shape a resilient and equitable future for Arizona.

For media inquiries, contact:

Dre Thompson

President,

Groundswell Capital

dre@groundswellcapital.org

groundswellcapital.org