If 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.”
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.
“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 Commission
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 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 expand. “We just launched our first site development program,” O’Neal says. “We have $10 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; firearms manufacturing; outdoor lifestyle and recreation; and hospitality and tourism.
Arkansas offers incentives to help these industries grow:
The Arkansas Economic Development Commission offers tailored incentives to support business growth and offset costs associated with job creation projects.
These 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 1-800-ARKANSAS or visit the website at www.ArkansasEDC.com.
Five Questions with AEDC Executive Director Clint O’Neal
Clint 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.
