In the high-stakes game of small business, Texas cities are bringing their A-game, with Austin lapping the competition as the best spot to set up shop. A recent study by The Credit Review placed the Austin-Round Rock-Georgetown metro area at the pinnacle of their "25 Best U.S. Metros to Start a Small Business in High-Growth Sectors" list. The accolade hinges on the city's booming growth, diverse economy, and climbing population numbers.
For those looking to make their entrepreneurial debut, Austin's culture scene is a veritable gold mine. It's no shocker, then, to find the city leading the chart in sectors like arts, entertainment, and recreation. Despite the shift toward remote-centric business models, location still manages to play a crucial role. Bolstering your startup in the right locale could just give you the edge you need to outlive the competition. As the author of The Credit Review states, "The more resources a small business owner has, the better chances they have to succeed."
Don't count out Dallas, though; the metro holds its own by snagging the eighth spot, gaining recognition for its prowess in managing companies and enterprises. However, not every Texas city hit the jackpot in this ranking. According to the Culturemap Austin report, Houston lagged to 22nd place, while McAllen's high poverty rate saw it scratched at the list's bottom. This is according to a report by Houston InnovationMap, which also highlighted the disparities in business-starting prospects throughout the state.
But it's not all about the rankings. Houston, while a tad behind Austin and Dallas, proudly stands out in the arts and entertainment domain. The sprawling metro's GDP per capita is nothing to sneeze at either, with a hefty 8.9 score out of 10—only a shade lower than Austin's 9.3.
While Texas cities took varying spots on the list, they collectively propelled the state into the limelight as a breeding ground for business. In fact, earlier in the year, Texas clinched the No. 3 spot on separate reports from WalletHub and Credit on Tap as one of the best states for starting a business. This continuous streak of recognition underlines Texas as a veritable heavyweight in the small business sector, well-positioned to sustain its entrepreneurial spirit for the foreseeable future.