Austin is the Best Place in Texas to Start a Business-- Wallethub

Texas has seen its fair share of successful business startups in the last decade, and both investors and entrepreneurs just can't help but fall in love with Texas' business-friendly culture and policies. But did you know which cities in Texas are best for startups?

A recent ranking by Wallethub came up with this year's list of best cities for starting a business out of 150 of the U.S.' largest cities. Using the metrics of business costs, access to resources, and overall business environment, the final ranking showed that most Texas cities made it to the Top 25 in the national list. Austin ranked first in Texas and eighth nationally, while Amarillo ranked second in Texas and ninth nationally.

It's Not all Perfect in Texas

While most Texas cities, particularly Austin, fared well in the rankings, the study also noted some of the familiar challenges business owners and startups face when venturing into the local Austin market. Austin (8th nationally) places behind Boston, San Franciso, Madison, Wisconsin, Lincoln, Nebraska, and even Richmond. Factors like venture capital funding per capita and the local talent pool showed Austin was a little behind compared to these cities. In the aspect of business costs, Austin ranked 127th, mainly due to expensive office space costs, high costs of living, etc. Also, Austin ranked 4th in the business environment category behind San Antonio, thanks to factors such as length of the average work week, average growth in number of small businesses, startups per capita, average growth of business revenues, the 5-year business survival rate, industry variety, and an entrepreneurship index.

Curious to know about Wallethub's methodology and ranking? You can access their data here.

Here's the list of Top 15 Best Cities in Texas to Start a Business:

15. Garland (No. 68 nationally)