City of Oro Valley – Startup Tucson

City of Oro Valley - Needs Assessment

Project Date: Summer 2021

Agency Client for Startup Tucson

Project Role: Background Research, Survey Construction, Copywriting for Print and Digital Ads to Promote Survey

Thorough market research on the City or Oro Valley, AZ, was conducted ahead of rolling out a survey (and promoting the survey via print and digital advertisments) and organizing focus groups to evaluate its entrepreneurial ecosystem and understand how to best serve small businesses and startups in the area.

Purpose of Project

The purpose of this assessment is to discover the current and future needs of Oro Valley entrepreneurs.

Elements essential to a functioning entrepreneurial ecosystem will be assessed; elements such as:

Talent,
Education,
Locations and Events,
Mentorship,
Incubators and Accelerators, and
Funding
Impact of Existing Entrepreneurs

Demographics of Oro Valley

Oro Valley is a relatively new town located next to Tucson, AZ, incorporated in 1974. Since incorporation, Oro Valley has been rapidly growing starting from a population of 1,200 to 44,630 in 2020 in a town that is only 2.4 square miles. Oro valley is located within the Tucson Metropolitan area with a population of approximately 1 million people.

Demographics

Oro Valley is a wealthy community with an average household income of $83,000 with a poverty rate of only 6%. 97% of the population has a highschool diploma and more than half the population, 52.4%, have a college degree. The population is predominantly white at 88%. The population of Oro Valley leans older than neighboring cities such as Tucson, 14.3%, Phoenix, 10.6%, with 33.9% of the population being 65 or older. 75% of the population in Oro Valley own their home. Compared to Phoenix and Tucson, 82.6% and 83.5% respectively, 91.1% of the population has permanent subscribed access to broadband.

Current Entrepreneurial Ecosystem of Oro Valley

An entrepreneurial ecosystem is a clustering of interconnected individuals, organizations, and bodies that facilitates and supports entrepreneurial activity. Famous examples of successful startup ecosystems include Boston and Silicon Valley. Because every variable is interconnected, a successful entrepreneurial ecosystem must be flexible, adaptable, and unique to the city's own environment. One of the biggest mistakes that a municipality can make is trying to replicate an entrepreneurial ecosystem model that is exactly like that of Silicon Valley.

Oro Valley Business Landscape

In 2012, there were a total of 3,352 reported businesses in Oro Valley. The gender makeup of Oro Valley businesses is relatively split between male and female owners. Of the 3,352 businesses, only 11%, 396, were minority owned. Of the approximate 5,000 minorities in Oro Valley, the business ownership rate is relatively low at only 8.7% of minorities owning a business.

Bio-Pharmaceutical Background in Oro Valley

Ventana Medical Systems
Ventana was the first biotechnology company in Oro Valley. Dr. Thomas Grogan, a UA pathology professor, started Ventana in the mid-1980s over his frustration with the accuracy of cancer tests. He developed his own testing methods, arranged findings and built a company that went public in 1996. In 2008, Roche Holdings purchased Ventana Medical Systems, Inc. for $3.4 billion. Ventana has a seven-building 350,000 square-foot campus in Oro valley that includes a research and development department, manufacturing facility and even a cafeteria with approximately 1,000 staff.

Sanofi-Aventis
Similar to Ventana Medical Systems, Sanofi-Aventis has also been a major player in the Bio-Pharma industry in Oral Valley since the 90’s through University of Arizona Alumni. University of Arizona chemistry professor Victor Hruby and UA Cancer Center researchers Sydney Salmon, Kit Lam and Evan Hersh formed Selectide Corp. in 1990, using the new field of “combinatorial chemistry” to screen vast numbers of chemical peptides for their potential to fight disease. The company was sold to Marion Merrill Dow in 1995 for $53 million, and through a series of sales and mergers became part of Sanofi in 2004.

As of 2021, the Sanofi-Aventis facility, located at 2090 E. Innovation Park Dr., is available for rent. In 2016, Icagen signed an agreement with Sanofi-Aventis to Acquire the 2090 E. Innovation Park Dr. Regulatory filings show Icagen paid a cash price of just $1 plus the assumption of certain liabilities. The deal includes a five-year contract under which Icagen will continue to perform drug-discovery services and maintain Sanofi’s chemical libraries in exchange for payments totaling $32 million over five years. Sanofi’s interest is secured by a five-year, $5 million lien, and Sanofi will regain rights to the Oro Valley operation if Icagen sells the facility within five years, according to an Icagen filing with the U.S. Securities and Exchange Commission.

Economic Development Initiatives
To promote economic development, the Town Council adopted the Economic Expansion Zone (EEZ) for Innovation Park. The purpose of the EEZ Innovation Park is to encourage economic development in Innovation Park by streamlining the review process / time required by making the approval process administrative for projects that meet all zoning standards while preserving and protecting the health, safety and welfare of the community. Establishment of the zone was endorsed by the Greater Oro Valley Chamber of Commerce. The Economic Expansion Zone allows a very aggressive, streamlined process to build large scale buildings of tens of thousands of square feet within a year to 18-month time frame. In April 2013, Securaplane Technologies was the first company to benefit from the new Economic Expansion Zone with the announcement of a 55,000 sq ft building in Innovation Park. Securaplane specializes in energy storage, power electronics, airborne cameras, cellular security and wireless control systems. Securaplane currently employs 160 people at its location in Foothills Business Park in Oro Valley.

Oro Valley Town Development
The residents of Oro Valley have a strong history of preserving the town’s character. In the 1960’s, the Mayor of Tucson, James Crobett, attempted a hostile annexation of the Oro Valley area, that ultimately led to the Arizona Supreme Court. In 1974, the Town of Oro Valley was incorporated. Since 1974 the Town of Oro Valley has rapidly grown from 1200 residents to over 45,000 in 2021.

As the Town of Oro Valley has been rapidly growing, the town has sought to accommodate its booming population through its own expansion attempts. On February 5th, 2013 the Oro Valley Town Council adopted a 15-page annexation strategy that includes Casa Adobes and the Westward Look Resort. All attempts at annexation have been unsuccessful. Due to the fact that Oro Valley does not have property taxes, one of the only ways Oro Valley can increase revenues to support continued growth is through annexation of areas with businesses.

Residents in Oro Valley have a prominent voice in Town Hall and tend to be pro-environment. An environment conscious community has slowed down the Town’s plan to develop the community such as in the case of Romspen Vistoso. Owner of the Rancho Vistoso Golf Course, Romspen Vistoso, proposed a general plan amendment and rezoning to develop parts of the golf course for high density housing. Due to strong community pushback, Rompsen Vistoso rescinded its application.

Economic Development Timeline
2004: Integrated Biomolecule Corp relocates to Oro Valley

2007: Sanofi-Aventis breaks ground to triple its Oro Valley research center

2010: Sanofi-Aventis opens new $60 million research center in Oro Valley

2011: Sanofi-Aventis sells Hanley facility for 3.05 million to UA

2013: Securaplane Technologies, Inc. secures a 55,000 sq ft building in Innovation Park.

2015: UA chooses Oro Valley as new location for Vet school

2016: Icagen acquires Sanofi’s Oro Valley, Arizona Research Facility

2020: UA unveils Center for Innovation in Oro Valley

2021: OV Chamber and UACI host life science startup competition

Competitive Analysis

In order to understand the strengths and weaknesses of the Town of Oro Valley’s entrepreneurial ecosystem, two similar sized towns that are known as being entrepreneurial hubs were selected.

Examples:
Corvalis, Oregon
Corvallis, Oregon, has one of the most educated populations in the country. It has the third highest proportion of adults with a bachelor's degree or higher, at 53.8 percent, compared with the United States average of 32 percent. In Corvallis, 97.3 percent of it’s adult population graduated from high school, the highest such share in the nation.

A major institution in Corvallis is Oregon State University, one of the city's largest employers. Oregon State University created the Oregon State University Advantage that forges connections between the business and academic communities to bring ideas to the marketplace. Among the companies with a presence in the city is computer maker Hewlett-Packard, which has a research campus in Corvallis. Hewlett-Packard employs about 1,700 people in Corvallis.

Burlington, VT
In 2015, Burlington-South Burlington, Vermont had 367 patents granted, or 169 per 100,000 residents, the eighth highest in the country. In 2013, Burlington became the smallest U.S. city to be designated as an IBM Smarter City. Burlington was chosen after it submitted an application proposing the city and IBM collaborate to work to reduce the city's greenhouse gases. The IBM Smarter Cities Challenge was launched in 2010 and is an initiative involving IBM employees who work with city officials to address the technological challenges cities face.

The University of Vermont, the largest in the state, created the initiative UVM Innovations in 1999 to help companies commercialize new technologies that benefit society.

City

Oro Valley, AZ

Corvalis, OG

Burlington-South Burlington, VT

Population

44,630

58,027

61,707

Population Growth

(2010 to 2020)

12.2%

Population per sq mile

1,154

3,854

4,115

Persons 65 or older

33.9%

12.7%

11.9%

Household Income

$83,341

$52,942

$51,384

Adults with a Bachelor's Degree

52.4%

59.1%

53.3%

Colleges/Universities

University of Arizona

Linn-Benton Community College
Oregon State University
Western Oregon State University

Champlain College
Saint Michael's College
University of Vermont

# of Patents

1024

17,473

Civilian Labor Force

48.1%

59.6%

65.6%

Total Firms (2012)

3,552

3,910

4,547

Employers of Interest

Sanofi-Aventis
Ventana Medical Systems
Honeywell
Securaplane

SIGA Technologies
ONAMI
HP Inc.

General Electric
General Dynamics
Dealer.com
Ben & Jerrys
Burton Snowboards
Rhino Foods
Seventh Generation Inc.

Incubators

N/A

Advanced Technology and Manufacturing Institute
Business Enterprise Center
Corvallis Benton County Economic Development Office
Pitchfork Incubator Kitchen
Small Business Development Center

Build Your Own Business
LaunchVT
Vermont Center for Emerging Technologies
Vermont Small Business Development Center

Accelerators

N/A

Advantage Accelerator
Advantage Accelerator Iterate
Advantage Accelerator Launch
Oregon Rain

Accel-VT
LaunchVT
Vermont Small Business Accelerators

Angel Groups/VCs

N/A

OEN Angel Oregon
Oregon Venture Fund
OSU Venture Development Fund
Willamette Valley Capital

FreshTracks Capital
North Country Angels
Vermont Seed Capital Fund
Vermont Works

Accolades

"Upscale Tech Mecca" of Southern Arizona by the Arizona Daily Star newspaper

Livability and Entrepreneur magazine’s rankings of the best cities for entrepreneurs in both 2016 and 2017.
2nd on Verizon's list of the most innovative metropolitan areas in the United States; 10th overall on the list of the best small cities to start a small business.

First city to run exclusively on renewable energy (2015)
In 2017, 24/7 Wall St. listed the Burlington-South Burlington area eighth on its list of the 25 most innovative cities in the United States.
In 2018, Verizon ranked the same area as the third-most innovative metropolitan area in the country.
In 2019, WalletHub ranked both cities on their list of the best cities for Hispanic entrepreneurs.
IBM Smart CIty designation (2013)

Oro Valley SWOT Analysis

Strengths:

A well educated population that has experience and capital
Located next to an emerging start-up community, Tucson
A town government that is pro-business
Relative low-cost of living
Warm year-round weather
Economic Expansion Zone

Weaknesses:

Oro Valley is a popular snowbird community which means a significant portion of the community does not live in Oro Valley year-around
Oro Valley lacks diversity
Oro Valley is limited in geographic size
No property taxes limits opportunities for growth

Opportunities:

Partner with Tucson and Phoenix to develop the Sun Corridor as a STEM hub of the Southwest

Threats:

Oro Valley residents may become anti-business as the town changes from small town to city.
Cannibalization between Tucson and Oro Valley to be the “innovation hub of the Southwest”

Methodology

Startup Tucson will present a “snapshot” of the Oro Valley community but will not involve every business or potential entrepreneur in the community. Startup Tucson anticipates being able to collect data from at least 50 entrepreneurs. This assessment will consist of: reviewing existing Oro Valley economic development data, market research of Oro Valley’s entrepreneurial ecosystem, conducting business and community stakeholder interviews, developing digital surveys and focus groups, deployment of the survey and focus groups in the Oro Valley market aimed at social media and email campaigns, data analysis of the instruments and a presentation of a final report.

The scope of work is designed in a way to garner answers to the following questions.

Research Question

Data Collection Sources

Current State: What is the current make-up of Oro Valley’s entrepreneurs in terms of stage, demographics, and/or industry?

Survey
Background research
One-to-one interviews

Resource Availability: Of the available resources currently available to small businesses and startups, which are the most useful? Which are underutilized?

Survey
Focus groups
Background research
One-to-one interviews

Business Types: Are there particular niches or industries that tend to prosper more in this area than others? Are there industries that are “low hanging fruit”? Are there industries that would be a greater “stretch” for Oro Valley to build towards?

Background research
One-to-one interviews

Gaps & Opportunities: Of the 7 essential elements to a functional entrepreneurial ecosystem, which needs the most improvements in Oro Valley from the perspective of entrepreneurs, small businesses and startups?

Survey
Focus groups
One-to-one interviews

Administrative Review and Market Research
Stakeholder Interviews. Meetings with community and business stakeholders that are a part of fostering the economic growth of Oro Valley. See interview stakeholders and sample in Appendix.
Survey Research (Sample Size: N=50). First survey aimed at gauging demographics, stage of development, industry, resource assessment, and ecosystem assessment of local entrepreneurs. See survey sample in Appendix.
Focus Groups. Our goal is to gain insight into the small businesses, entrepreneurs, and startups in Oro Valley and thoroughly understand their thoughts on the strengths and weaknesses of the entrepreneurial ecosystem in Oro Valley. See focus group sample in Appendix.
Involved in methodology:

- Currently existing small businesses
- Currently existing startups
- Micro-entrepreneurs (solo-entrepreneurs)
- Consultants
- Interested/Potential future entrepreneurs
- University of Arizona Center for Innovation staff

Survey Print Ads and Copy

Suggested post copy:

Option 1:
Calling all current or future entrepreneurs in Oro Valley, we need your help! Startup Tucson is working with The Town of Oro Valley, and they want to hear from you in a brief survey to better understand how to best serve the entrepreneurial community.

Please fill out the survey below. One lucky survey respondent will win a $50 gift card to Seis Kitchen! #OroValleySmallBusiness #OVentrepreneurs

Option 2:
How can the Town of Oro Valley help your business? Let them know in this brief survey! As current or future entrepreneurs, Startup Tucson and the Town of Oro Valley are working together to better understand how to best serve you.

Please fill out the survey below. One lucky survey respondent will win a $50 gift card to Seis Kitchen! #OroValleySmallBusiness #OVentrepreneurs

Post Tips:

Choose the image you like most from those included
Tag Startup Tucson where possible
Tag individual friends, companies, etc. that you feel would be good potential respondents for the survey or that might also help to
share the message far and wide--

MAILER

CTA Picture at top: Take our survey (big text) have your business’s voice heard (small text)

Hello Entrepreneurs and Business Owners!

Eager to share any resources you've used to grow your business in Oro Valley? Did you face any challenges when launching your idea? Whatever it is, we want to know in our survey!

Startup Tucson is working alongside The Town of Oro Valley and we want to hear from you to better understand how to serve the entrepreneurial community in Oro Valley.

One lucky survey respondent WILL WIN a $50 gift card to Seis Kitchen. Have your business’s voice heard and potentially win! Let us know in the link below:

[survey link]

Let’s build up the entrepreneurial ecosystem of Oro Valley, together.

Sincerely, the Startup Tucson Team

Survey

Oro Valley Needs Assessment Entrepreneur Survey

Survey Introduction

We would like to thank you for participating in this survey. Your responses will be used to further enrich and better serve the community of Oro Valley. This survey should take roughly 5 to 10 minutes to complete.

Discretion and confidentiality will be maintained with all identifying information. By continuing, you agree to allow the Town of Oro Valley access to your responses to assess its entrepreneurial ecosystem and how to best serve the interests of entrepreneurs, small businesses, and startups for future planning.

One lucky survey respondent will WIN a $50 gift card to Seis Kitchen! Have your business’s voice heard and potentially win!

Qualifying Question:

Please select the answer that best describes you:

I currently own a business in Oro Valley
I currently own a business in Oro Valley, but I have an idea for a new startup or spinoff business
I am on the leadership team of a business in Oro Valley, but I have an idea for a new startup or spinoff business
I have an idea for a business, and I am interested in launching it in Oro Valley
I have an idea for a business, but I need help launching a business in Oro Valley
None of the above << End Survey with Thank You Note >>

Block 1: Demographic Survey Questions

Q1: Which of the following best describes the state of your idea for a new startup or spinoff business?

Early Development/Pre-Launch
Idea developed but not financed
Idea developed and financed
New startup business established
New spinoff business established

Q2: Please select the industry that best identifies your current or future business in the list below:

(dropdown list)

Software Company
Consumer Product Company
Tech Company
Service or Consulting
Social Impact/Nonprofit
Creative/Maker
Food Company
Other: << free response>>

Q3: What is the ZIP Code of your existing business? If you haven’t launched your business yet, what is your residential ZIP Code?

<< free response >>

Q4: Regarding location, where is your existing or intended primary customer market?

Oro Valley
Tucson Metro Area
National
International
Other: << free response >>

Q5: Would you describe your business operations in Oro Valley (or potential business if you have yet to launch) as year-round or seasonal? Example: You do business in Oro Valley for a specific time of the year or year-round.

Year-round
Seasonal

Block 2: Resource and Tool Assessment

Q1: How confident do you feel that you have the tools or resources you need to grow or launch a successful business in Oro Valley?

1 (Not at all confident)
2
3
4
5 (Extremely confident)

Q2: What tools or resources do you believe are necessary to grow or launch a successful business?

<< free response >>

Q3: What tools or resources do you believe are missing or underdeveloped in Oro Valley for growing or launching a successful business?

<< free response >>

Q4: What are some of the community resources in Oro Valley that you utilized to help grow your business that you would advise to a prospective startup, small business, or entrepreneur?

<<free response>>

Q5: How confident do you feel that Oro Valley is a viable place to grow or launch your business?

1 (Not at all confident)
2
3
4
5 (Extremely confident)

Q6: What are the top 3 challenges for your startup or spinoff business succeeding or what are the top 3 challenges preventing you from launching your idea?

<< free response >>

Q7: Is there anything else you think we should know about how Oro Valley can be a more supportive environment for entrepreneurs, small businesses, and startups?

<< free response >>

Block 3: Entrepreneur Ecosystem

The essential elements of a successful entrepreneurial and business community are typically as follows:

Talent
Education
Business Networking & Community
Mentorship
Incubators & Accelerators
Funding
Impact of Existing Entrepreneurs

Q1: From the elements listed above, please rank Oro Valley from 1 to 7, with 1 being the most accessible and helpful essential element and 7 needing the most improvement in Oro Valley as it relates to businesses and startups: (ranked choice click and drag)

Q2: Please provide any additional thoughts about how you ranked the essential elements of a successful entrepreneurial and business community (Optional _____ free response)

Block 4: Optional Demographic Questions

Are you willing to share demographic information?

Yes
No (No moves to block 5)

Q1: What is your age?

Under 20
20 to 29
30 to 39
40 to 49
50 to 59
60 to 69
70 or older
Prefer not to answer.

Q2: What is your ethnicity? (select all that apply)

Caucasian
African American
Latino or Hispanic American
Asian American
Native American
Native Hawaiian or Pacific Islander
Other/Unknown
Prefer not to answer.

Q3: What is your current household income?

Less than $25,000
$25,000 - $50,000
$50,000 - $100,000
$100,000 - $200,000
More than $200,000
Prefer not to answer.

Q4: To which gender identity do you most identify?

Female
Male
Non-binary
Not listed (fillable)
Prefer not to answer.

Q5: What is the highest level of education you have completed?

Less than high school
High School Graduate
Some College
Associates degree
Bachelor's degree
Professional / Masters / Graduate Degree
Doctorate
Other (Fillable)

Block 5: Follow-Up

Q1: Survey Entry

Would you like to be entered into the giveaway?

For entry into the giveaway, please provide your name and email address below:

<< free response>>

Company Name (optional)

<< free response>>

Q2: Focus Group

Would you be willing to be contacted for follow-up by the Startup Tucson team to share more about your business journey?

Yes
No <<<End of Survey>>>

Follow-Up Question on Focus Groups:

If yes, please provide:

Your Name

<< free response>>

Company Name

<< free response>>

Email Address

<< free response>>

Brief Description of Your Company

<< free response>>

(End of Survey)

Survey Closure: Thank You Block

The survey is complete.

Thank you for your time, and we look forward to recording your response to see how to best serve the entrepreneurs, small businesses, and startups in Oro Valley in the future.

Snickers

Startup Tucson – Startup Fundamentals

Selected Works

City of Oro Valley - Startup TucsonCopywriting, Digital Marketing, Marketing Research

Startup Tucson - Startup FundamentalsCopywriting, Digital Marketing

Startup Tucson - Social Media AnalysisDigital Marketing, Marketing Research

Startup Tucson - Digital ToolkitCopywriting, Digital Marketing

Silk - We're Growing With YouCopywriting, Branding, Integrated Marketing, Marketing Research

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Moonlighter FarmCopywriting, Digital Marketing, Social Media Marketing, Email Marketing, Blogging

Boy Band BuilderDigital Marketing

SpaceItProduct Design