< Previous8 ARKANSAS ECONOMIC DEVELOPMENT GUIDE Since taking office, she has presided over a booming state economy and seen her state become a top five destination for moving Americans. In the following interview, she outlines her approach to economic development and her pro- business philosophy. You have made cutting taxes a key part of your agenda as governor. What motivated you to do this, and how have these tax cuts helped the Arkansas economy grow? GOVERNOR SANDERS: Who do you trust more to handle your money: the government, or yourself? It’s a simple question, but one government often gets wrong. We’ve cut taxes three times in my administration and, since just 2015, have sliced our state income tax nearly in half. This puts money back in the hands of families and businesses, where it belongs, and has allowed us to create record economic growth and jobs numbers throughout my time in office. You have also made education a key platform of your administration, exemplified by Arkansas LEARNS. What are the key tenets of LEARNS, and how does it help students learn and grow? GOVERNOR SANDERS: I ran to be Arkansas’ education governor, and I’ve made it a top priority since day one of my administration. I signed the LEARNS Act into law just months after taking office, raising starting teacher pay from $36,000 to $50,000 — from 48th in the nation to top five overnight — deploying 120 literacy coaches around the state, and offering universal school choice for the first time in Arkansas history. Of special interest to companies and potential investors is our Career Ready Pathways program. Now, every high school in the state is required to offer classes in at least one of 18 high- wage, high-growth professions, like manufacturing, construction, computer science and welding. Growing the outdoor economy in Arkansas is another major goal of your administration. How do you plan to accomplish this? GOVERNOR SANDERS: Arkansas’ natural beauty is one of our state’s greatest assets — and it’s gone untapped for far too long. Alongside my husband, Bryan, I created the Natural State Initiative, bringing together the greatest minds in the public, private and nonprofit sectors to invest in outdoor recreation, tourism and Arkansans’ quality of life. Our tourism industry has been breaking records month after month, and I’m excited to welcome visitors who are coming to Arkansas to enjoy first-class hunting, fishing, biking, hiking, rafting, boating, and join in all the other amazing outdoor activities we have to offer. You have a track record of firsts — from being the first mom to serve as White House press secretary to being the first woman to serve as governor of Arkansas. You are also the youngest serving governor in America. What do you think these accomplishments say about you and the team of people you have assembled around you?ARKANSAS ECONOMIC DEVELOPMENT GUIDE 9 GOVERNOR SANDERS: I’m proud to be the first woman to lead my state but I didn’t run to be first of anything; I ran to make Arkansas first in everything. To accomplish that, I surrounded myself with a team of highly qualified leaders from Arkansas and around the country. Less than two years into my administration, I think our accomplishments speak for themselves: three tax cuts, record job numbers, an expanding economy, Arkansas LEARNS, investments in public safety, a growing tourism industry and more. Census data show that Arkansas has become one of the preferred destinations for people on the move in America. Why did your state suddenly become so popular? What are the factors driving people to choose to relocate to Arkansas? GOVERNOR SANDERS: Arkansas has a lot to offer: a low cost of living, an excellent quality of life, and commonsense, pro-business leadership in state government. We’re proud of our history and the amazing state we call home — but we’d never let that get in the way of welcoming newcomers. Whether it’s tech workers in Northwest Arkansas, retirees in Hot Springs, college graduates in Little Rock, or new families in any of the cities or towns across our state, we’re proud to welcome any new residents who want to make Arkansas their home. What are some of your top goals for the remainder of your administration? GOVERNOR SANDERS: One thing I learned from my dad, former Governor Mike Huckabee, is that passing laws is the easy part. Implementing them is where the rubber meets the road. We’ve worked hard to make sure the reforms I signed into law are actually effective, especially in areas like education, public safety and tourism. Going forward, I want to grow Arkansas’ economy while limiting the growth of government, allowing us to responsibly cut taxes and help businesses and families thrive. “ Arkansas has a lot to offer: a low cost of living, an excellent quality of life, and commonsense, pro-business leadership in state government. ” — Governor Sarah Huckabee Sanders10 ARKANSAS ECONOMIC DEVELOPMENT GUIDE THE ARKANSAS ADVANTAGE by RON STARNER The Arkansas Advantage: Relationships Build an Ecosystem for Growth In May 2024, Tractor Supply Company announced the opening of its 10th and largest distribution center in Maumelle, Arkansas. The 1.1 million square-foot facility represents an investment of more than $175 million in the region and will create 500 full-time jobs. Photo courtesy of AEDC f you want to know why so many companies thrive in Arkansas, it pays to listen to the people who run these firms. “I think there’s a real advantage being in a place like Arkansas,” said Warren Stephens, Chairman, President and Chief Executive Officer of Stephens, a privately owned diversified financial services firm headquartered in Little Rock. “It keeps you grounded. My dad used to say, ‘We feel the heart of the county,’ and I think that’s true. Why Arkansas? It’s the people.” IARKANSAS ECONOMIC DEVELOPMENT GUIDE 11 Jeff Thiessen, President of Dansons, said, “The state of Arkansas has been the most welcoming, most friendly and most encouraging location we’ve ever done business in. The Arkansas Economic Development Commission, the town, the county and the state have welcomed us with open arms from the onset of this project. As a family-owned business, the personal touches that have come from the governor and secretary’s offices have meant a lot to us. We believe in relationship and people, and we really like the people we are working with.” David Allen, senior director of Frito- Lay in Jonesboro, said, “We continue to operate here for the same reasons we were drawn here initially. We cannot succeed without great people and a great employee base. Location also makes a difference. Our products are distributed nationally, and in Jonesboro, we enjoy proximity to interstate, rail and trucking.” Testimonials like these abound. What they have in common is that CEOs and other business leaders in this state of 3 million people say that when they do business here, they find an ecosystem that responds favorably to their needs. In other words, companies like these and others succeed in Arkansas not because of luck, happenstance or fate, but because state and local leaders take the time to listen to them and then take appropriate action. Since 2020, Arkansas reduced corporate income tax rates four times, passed bills to eliminate burdensome red tape from business regulation, and set aside millions of dollars for industrial site development. The results have been staggering. By various metrics, Arkansas now ranks among the top five states in the nation for in-migration moves each year; and Arkansas climbed to become the No. 1-ranked state for entrepreneurialism. Companies like Walmart, Frito-Lay, Dillard’s, Stephens, Amazon and Hytrol are booming, and smaller firms are too. Arkansas placed 19 companies on the INC. 5000 list of the fastest-growing firms in the nation. Independent observers are taking notice: • Site Selection magazine ranked Arkansas No. 1 for workforce development in the South-Central region of the U.S. in 2023. • C2ER ranked Arkansas as having the second-lowest cost of living in the country. • The 2023 Annual National Movers Study ranked Arkansas fourth in highest percentage of inbound movers last year. • The Bureau of Labor Statistics ranked Arkansas as the No. 10 state for lowest union membership rate in the country. • Forbes said Arkansas is the third-best state to launch a new business. Clint O’Neal, executive director of the Arkansas Economic Development Commission (AEDC), says that “Arkansas provides the options of living in a state with a high quality of life and a low cost of living. Many amenities are in Arkansas. It is integrated into our lifestyle. As a result, we have seen a lot of talent retention. Many Arkansans work “ Arkansas provides the options of living in a state with a high quality of life and a low cost of living. ” — Clint O’Neal, Executive Director, Arkansas Economic Development CommissionC lint O’Neal, executive director of the Arkansas Economic Development Commission, recently took time to elaborate on the state’s major economic development policies and achievements. Talent attraction has become the calling card of Arkansas in recent years. What factors are influencing this trend? What is AEDC doing to bolster this influx of new residents? O’NEAL: Around the nation, costs of living are rising, and people want somewhere that is affordable to live. Arkansas has one of the lowest costs of living in the United States. Combined with our state’s beautiful outdoors and the incredible job opportunities, people are realizing that Arkansas really is a natural choice. AEDC is part of a state government effort that is working to attract talent to Arkansas. Our team has developed a strategy — informed by experts and bolstered by test audiences — to attract talented individuals in key industries and with specific skillsets to our state. We look forward to fully implementing this talent attraction strategy to ensure that businesses in Arkansas can find the workforce they depend on and can continue growing. What impact have the state income tax cuts had on your state? O’NEAL: Since 2015, Arkansas has cut taxes in each legislative session — and Governor Sanders and the Arkansas General Assembly have cut taxes three times since the beginning of her administration in 2023. These tax cuts have made our state more competitive — for companies and for individuals and for families. These tax cuts allow Arkansans and companies to keep more of their hard-earned money in their pockets, and they show that our state is fiscally responsible and stable. Arkansas has come a long way in lowering taxes, but we are not done. We look forward to continuing this trend of responsibly lowering taxes to make our state even more competitive. What is Arkansas doing to support site development for industrial expansion statewide? O’NEAL: In 2024, AEDC launched the Arkansas Site Development Program to provide matching funding for site development improvement efforts throughout the state. This program will help us develop existing sites around the state, making them more competitive for job-creating economic development projects. In the future, we look forward to growing this program and increasing the inventory of sites in Arkansas. What type of feedback are you receiving from companies? O’NEAL: For companies that are not familiar with Arkansas, they are surprised by the ease of doing business in Arkansas. We have a small state — we are well-connected and work well together, and this creates a seamless experience for companies that are looking to move quickly and start doing business. Many executives are also surprised by the amenities in Arkansas — from cultural opportunities like Crystal Bridges Museum to the beautiful outdoors around the state. Arkansas has the full package. Executives and site selection consultants know that the AEDC team will provide customer service that is second to none. From helping with real estate searches to guiding companies through the advantages of doing business in Arkansas and making introductions to state and community leaders that will help companies be successful, it’s been encouraging to hear decision makers report on how the team in Arkansas puts together a compelling case for our state and makes it easy for them to be successful here in the Natural State. What is your state doing to promote FDI? O’NEAL: Foreign direct investment is a major priority for Arkansas, and we have taken multiple international trips to promote the state in the past year. Our team attends the Paris International Air Show and the Farnborough International Airshow on alternating years, and we have had great success at establishing and strengthening relationships that lead to economic development wins at these events. Recently, the AEDC team has made trips to Germany, South Korea, Japan, and India to meet with company executives and government officials. One of our major initiatives has been the establishment of a new AEDC office in South Korea. This office will help us develop new relationships and prospects, leading to new growth opportunities for both Arkansas and South Korea. Five Questions with AEDC Executive Director Clint O’NealARKANSAS ECONOMIC DEVELOPMENT GUIDE 13 remotely from Arkansas for companies around the world. We have enjoyed a lot of success as a state because of this. A lot of it is tied back to our talent attraction campaigns.” O’Neal says the tone is set at the top. “Gov. Sarah Huckabee Sanders has cut taxes three times during her administration and has championed the outdoor economy. She came into office with a strong emphasis on education and workforce development.” She acted quickly too. She raised starting teacher pay from $36,000 to $50,000. She implemented school choice. And she continues to pursue her goal of making Arkansas the most business- friendly state in the country. “We are surrounded by some very competitive, business-friendly states,” says O’Neal. “Gov. Sanders has star power. Company executives from around the world are very pleased to meet with her. That is definitely an asset for us.” With the latest round of tax cuts, Arkansas now has capped personal income tax rates at 3.9% and corporate income tax rates at 4.3%. “That is down from 7% and 6.5% before the cuts started,” says O’Neal. “We just had a $700 million surplus after having a $1 billion surplus. We still had a very healthy budget. That sends a signal to Arkansans that we do not regret these cuts.” Building an ecosystem for business growth does not stop there, says O’Neal. “We launched the ARise program,” he adds. “We want tech and tech-enabled companies to have access to services to scale up quickly. This program offers business coaching and other assistance for scaling up technology companies. Also, Startup Junkie is very well positioned here with offices around the state. It is very important for us for ARise to be a statewide program. We have 75 counties.” As startups grow, they need places to 14 ARKANSAS ECONOMIC DEVELOPMENT GUIDE expand. “We just launched our fi rst site development program,” O’Neal says. “We have $ million and an application process for communities to apply to receive state funding for sites. O’Neal says the project pipeline for the coming year is strong as many companies from other states and countries continue to scour Arkansas for sites. And they represent a wide array of diverse industries. Arkansas ranks as a national leader in the following sectors: agriculture and timber; steel and metal making and shaping; retail management and marketing; trucking, distribution and logistics; food production; fi rearms manufacturing; outdoor lifestyle and recreation; and hospitality and tourism. Arkansas offers incentives to help these industries grow: e Arkansas Economic Development Commission off ers tailored incentives to support business growth and off set costs associated with job creation projects. ese could include income tax credits, sales tax refunds, payroll rebates, or infrastructure assistance. For more information on state incentive programs, companies should contact the Arkansas Economic Development Commission at --ARKANSAS or visit the website at www.ArkansasEDC.com. ARKANSAS ECONOMIC DEVELOPMENT GUIDE 15 EXECUTIVE VOICES Executive Testimonials: The Business Case for Arkansas rkansas has a long history of producing notable business leaders. Names like Sam Walton, William T. Dillard, J.B. Hunt, Don Tyson and Jack Stephens come to mind. ey built companies into household names during their time in Arkansas. But did you know that Arkansas is producing another class of notable leaders? While they might not be as famous worldwide as the founders of Walmart and Tyson Foods, they are nonetheless making a huge diff erence in the business world, and they are doing it from their home base in Arkansas. One thing they have in common is their commitment to Arkansas as a business destination, not just for their own companies and employees, but for the fi rms they’d like to see join them as neighbors in the state one day. In their own words, here are what some of these modern-day leaders said about why they chose to do business in Arkansas. “You name a sports dynasty and study all the various interconnections that are not only in front of you, but that take place in myriad places behind the scenes, and that’s what Arkansas is for entrepreneurs and businesspeople. This is the greatest place to be an entrepreneur, to be an investor, to be a capital deployer in commercial for-profit businesses in the world.” — Scott Ford, CEO and Co-Founder of Westrock Coffee A “This is a calling, and I’m so blessed to be part of that calling; to aid our men and women at the tip of the spear, to have the tools to win. Arkansas is the center of that effort for SIG.” — Ron Cohen, CEO, Sig Sauer “This state has an incredibly collaborative culture. I’ve never been told no by somebody in the state of Arkansas. The folks at the top of the largest companies in the state have been willing to take time out of their day to help our business.” — Carter Malloy, CEO, AcreTrader “It’s a great success for U.S. Steel. I can’t speak highly enough of the cooperation and the partnership that we’ve gotten across Osceola, Mississippi County, and the state of Arkansas to get this done. It was a big deal for us. I mean, a $3 billion project... which, in our company’s history, 120-plus years, the largest project in U.S. Steel history, the largest project in the state of Arkansas history. It’s a huge deal for us bringing this plan online.” — Dan Brown, Senior Vice President and Chief Operating Officer, Big River Steel “Between Arkansas, Little Rock and Dassault, it has been an affectionate relationship. We have been here now for 50 years. It is important to continue that tradition and carry over to bring the future here.” —Thierry Betbeze, CEO, Dassault Falcon Jet “ “We explored numerous states, yet nothing truly resonated with us until we discovered Arkansas. After my initial visit, I was truly blown away. The economic and political advantages are impressive, and it’s the beautiful surroundings, the vibrant community, and the warmth of the people that truly captivated me.” — Anne Faymonville, Team Leader for Marketing, Faymonville Group.16 ARKANSAS ECONOMIC DEVELOPMENT GUIDE t should come as no surprise that the third least expensive state in which to start a new business is getting a jump on the competition when it comes to entrepreneurship. Don’t just take our word for it. Listen to what the Ewing Marion Kauffman Foundation had to say about Arkansas in the organization’s State Report on Early-Stage Entrepreneurship in the United States. According to the Kauffman report, Arkansas has the highest opportunity share for new entrepreneurs, which is a measurement of the “percentage of new entrepreneurs who created a business out of choice instead of necessity.” Kauffman’s 2023 report showed that Arkansas has a 93.1% opportunity share for entrepreneurs. To put that into perspective, the median opportunity share in the U.S. is just 79.1%. What does this all mean? It means that Arkansas is beating out all other states when it comes to attracting and developing entrepreneurs who start new businesses. An “opportunity entrepreneur,” according to Kauffman, is someone who is “coming out of wage and salary work, school or other labor market status.” In other words, these are folks who are choosing to become an entrepreneur rather than starting a business because they suddenly found themselves unemployed. “In Arkansas, we want to keep growing the number of entrepreneurs who are creating new businesses and employing Arkansans,” said Bob Kucheravy, who leads science and technology initiatives for the Small Business & Entrepreneurship Development Division of the Arkansas Economic Development Commission. “Having an innovative, pro-business climate with a strong talent pool and wide range of resources will help Arkansas continue to lead in opportunity share for entrepreneurs.” According to Kauffman, the number of opportunity entrepreneurs reveals the “influence of economic conditions on overall business creation.” The opportunity share metric is one of four early-stage measures of entrepreneurial activity that Kauffman uses in its report. A State of Rapid Risers Another metric that site selectors may want to use is the INC. 5000 list of the nation’s fastest-growing private companies. Arkansas has 19 of them, led by No. 43 Team GO Ventures, a Bentonville advertising firm that has experienced an astounding 6,271% growth rate over the last three years. Engineering firm Telex in Fayetteville comes in at No. 171 in the country and has grown by 2,232%. Other fast risers in Arkansas include STAT Recovery Services (905%), Legacy Retail (463%) and Elite Exteriors Roofing and Restoration (366%). I Entrepreneurship: Arkansas Is Fertile Soil For Growing Businesses ENTREPRENEURSHIP by RON STARNER Esperanza Massana-Crane - Director of Small Business & Entrepreneurship Development for the Arkansas Economic Development Commission. Photo credit: AEDC e high-growth fi rms in Arkansas come from all over the state. ey hail from places like Little Rock, Fayetteville, Rogers, Hot Springs, Bentonville and Lowell. ey also represent diverse industry sectors, including food and beverage, telecommunications, health services, software, engineering, advertising and insurance. Team GO was founded in and rose from No. on the INC. list last year. Team GO’s meteoric rise as INC.’s No. social commerce agency of led Market Performance Group to acquire Team GO on September of this year. Team GO Founder and CEO Oliver Bogner called this a huge win for his team: “TikTok Shop is the fastest- growing e-commerce platform in the world, and it’s time to take it as seriously as Amazon. Our mission continues to be focused on helping brands scale and drive revenue, turning on the power of a social commerce-enabled digital strategy. Joining MPG allows us to deliver our specialized social commerce expertise, while leveraging MPG’s broader omnichannel capabilities to provide even greater value to clients.” For more information on how to launch a new business in Arkansas, go to arkansasedc.com/business-resources/small- business-entrepreneurship-development or call the Arkansas Economic Development Commission at --ARKANSAS. Arkansas has the nation’s highest opportunity share for new entrepreneurs, at 93.1% Source: Ewing Marion Kauffman Foundation State Report on Early-Stage Entrepreneurship in the United StatesNext >