Perspectives on Business and Economics, Vol. 40

33 products for rapid business development and growth. This is precisely what happened with one of Alaska’s many breweries, the Alaskan Brewing Company. With a humble beginning in 1986, the company’s image centered around two defining factors of Alaska, the state’s brewing history and its natural environment. A factor of major importance for many beer consumers is the quality and freshness of ingredients. The water, a crucial ingredient in a well-brewed beer, is locally sourced from the 1500 square miles of ice and glaciers surrounding Juneau, the brewery’s home city. Fresh ingredients coupled with the historical significance of the recipe—passed down from those who partook in the Alaskan gold rush—used in the company’s first brew led to wide success. The Alaskan Brewing Company sells both internationally and as far east as Pennsylvania in the US, an illustration of a business that is utilizing the advantage that Alaska branding provides to overcome one of the largest barriers to manufacturing in Alaska, shipping costs. As demonstrated by this company’s success, people pay a premium to live part of the Alaskan experience (Alaskan Brewing Co., 2022). Recommended Actions For Alaska to take further advantage of its unique circumstances, additional supporting policies would be beneficial in tackling two of the larger previously discussed barriers, limited human capital and shipping costs. The most significant action that Alaska can take to continue to grow and diversify the economy is to prepare for the world of the near future, a world that is changing because of COVID-19 and climate change. Although both events continue to have devastating and lasting impacts around the world, with the right action and preparation, Alaska can foster a stronger small business environment given the new realities. The pandemic, through popularization of remote work, demonstrated options for dealing with one of the major barriers to businesses in Alaska, lack of human capital. The small business ecosystem would benefit both from out-ofstate residents providing their talents to Alaskan businesses and attracting those who work elsewhere but who want to live in the pristine Alaskan environment. Workers not inclined to move to Alaska can still provide key skills that businesses seek. It is estimated that roughly 22% of American workers, or 36.2 million people, will be working remotely in 2025 (Apollo Technical, 2022). To grow and prosper, Alaskan businesses need to attract educated workers to the exciting opportunities available, to which end the state should support implementation of a compelling marketing campaign. A specific advantage of working and living in Alaska is a lack of a state income tax. Fully remote workers generally pay income taxes in the state where they live, not where their employers are. However, some states have mutual agreements in which workers pay the tax rates of the employer state (Kess, 2021). If Alaska could strike a deal with, for example, California, which has both the greatest number of remote workers and the highest state income tax rate in the US (7.25%), these workers could utilize the income tax in Alaska. That incentive likely would be strong enough to encourage individuals to perform remote Alaskan jobs (Alaska Population 2021, 2021). However, working from outside Alaska is not a perfect solution because those incomes will likely not feed the Alaskan economy beyond any reciprocal tax agreements. The lack of a state income tax provides a second main possibility for remote workers: living in Alaska and performing jobs elsewhere. Two ways to promote this option include active advertising of the opportunities and advantages of living in Alaska and implementation of relocation incentives. Some people do not need a push to experience what it is like to live in Alaska. However, for the less decisive, Alaska should build a campaign emphasizing the benefits to living in the state that are not as commonly known. Beyond natural beauty, these perks include no income tax, the annual Permanent Fund dividend, the northern lights, the community, and many others that Alaska uniquely provides (White, 2019). With remote work opportunities increasing, individuals are looking to move away from crowded cities and relocate to cleaner, more scenic areas (Althoff et al., 2022). Alaska can use its advantages in these areas to attract and strengthen a high-skilled workforce and customer base for local companies. Other states are implementing cash incentives, as high as $10,000, for remote workers who move into a state (Pelta, 2021). Doing something similar in