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)
14. Brownsville (No. 64 nationally)
13. Arlington (No. 50 nationally)
12. Grand Prairie (No. 46 nationally)
11. Irving (No. 37 nationally)
10. Dallas (No. 30 nationally)
9. El Paso (No. 29 nationally)
8. Corpus Christi (No. 25 nationally)
7. San Antonio (No. 22 nationally)
6. Fort Worth (No. 20 nationally)
5. Houston (No. 18 nationally)
4. Laredo (No. 15 nationally)
3. Lubbock (No. 13 nationally)
2. Amarillo (No. 9 nationally)
1. Austin (No. 18 nationally)
Accolades Pouring In
Aside from being the best city to do business in Texas, Austin is also recognized by the Kauffman Foundation as one of the top cities in the U.S. for micro businesses. Austin was also found to be one of the nation's strongest supporters of the small business movement in a 2016 analysis by the American City Business Journal. Data showed that Austin's small business sector grew by 9.7% from 2010 to 2013, the fastest rate in the nation.
This blog post is based on an article that was first featured by the Austin Business Journal. You can access the write-up from which this post was based by clicking here.
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