Texas ranks among the 5 best states to start a business in 2025

Best for Biz

Texas has returned to the top 5 among best states to start a business. Photo via Getty Images

As one of the largest states in the U.S., it's no surprise Texas is big on business and entrepreneurship. Now the state is earning new praise among WalletHub's 2025 list of "Best & Worst States to Start a Business."

The Lone Star State claimed the No. 4 spot in the report's rankings, proving that Texas is in a much better business shape than it was last year when it earned No. 8 in WalletHub's annual report.

The study compared all 50 states across 25 metrics to determine the best places to start, grow, and find success with a new business. Factors that were considered include the number of startups per capita, job growth rates, financing accessibility measures, labor costs and corporate tax rates.

The three states to outperform Texas in the 2025 report are Florida (No. 1), Georgia (No. 2), and Utah (No. 3). Idaho rounded out the top five.

Across the study's three main categories, Texas performed the best in the "business environment" category, earning No. 1 nationally. This section compares the states based on five-year business survival rates, average business revenues growth and more.

Texas ranked No. 12 in the nationwide comparison of "access to resources" – which covers working age population growth, venture investment amounts per capita and other means – and earned a fair No. 34 in the report's "business costs" ranking.

But Texas can still do better with its business friendliness to reclaim a top-three overall ranking, which the state last earned in 2023.

WalletHub analyst Chip Lupo said in the report that it is imperative for potential new business owners to establish their enterprise in a place that can maximize their ability to succeed.

"Around half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting, especially with the current high cost of living," Lupo said. "The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally."

Houston has also proven to be at the top of the destination list for entrepreneurs who are looking for their next venture.

The top 10 best states to start a new business in 2025 are:

  • No. 1 – Florida
  • No. 2 – Georgia
  • No. 3 – Utah
  • No. 4 – Texas
  • No. 5 – Idaho
  • No. 6 – Oklahoma
  • No. 7 – Nevada
  • No. 8 – Colorado
  • No. 9 – Arizona
  • No. 10 – Kentucky
---

This story originally appeared on our sister site, CultureMap.

From Your Site Articles
Texas has been known for ages as a business-friendly state, but one recent report suggests it might be falling from grace. Photo via Getty Images

Texas' business friendliness gets mixed reviews from 2 recent reports

lone star standings

It’s a tale of two views of Texas’ business-friendly reputation. For the first time ever, the Lone Star State has fallen out of the top five in CNBC’s annual ranking of the best states to do business. Meanwhile, Texas tops Business Facilities’ new ranking of the best state business climates.

On July 11, CNBC released the 2023 edition of its ranking of the top states for doing business. The ranking puts Texas at No. 6, leaving the Lone Star State out of the top five for the first time since CNBC launched its study in 2007. Texas appeared at No. 5 in 2022 and No. 4 in 2021. The state finished first in 2008, 2010, 2012, and 2018.

For the second consecutive year, North Carolina leads the CNBC ranking, thus “solidifying its position as an economic powerhouse,” according to the Economic Development Partnership of North Carolina.

Despite dropping out of the top five, CNBC acknowledges that Texas remains an economic powerhouse.

Texas grabs CNBC’s No. 2 spot, behind Florida, for the best state economy. And the state witnessed year-over-year job growth of four percent through May, the highest rate of any state. Furthermore, Texas ties with California for access to capital, the study says, and snags the No. 2 spot in the workforce category.

Texas’ fall this year includes a slide from No. 15 to No. 24 in the infrastructure category. CNBC mentions the 2021 wintertime collapse of the state’s electric grid in its explanation of the nine-spot drop.

Other knocks against Texas:

  • A decline from No. 21 to No. 35 in the education category.
  • A dip from No. 12 to No. 16 in the cost-of-doing-business category.
  • A plunge from No. 14 to No. 22 for cost of living.
  • A bottom-of-the-barrel ranking in the life, health, and inclusion category, down from No. 49 last year.

In an email to CNBC, an unnamed spokesman for Gov. Greg Abbott shrugged off this year’s sixth-place showing.

“People and businesses vote with their feet, and continually they are choosing to move to Texas more than any other state in the country,” the spokesman wrote.

The spokesman cited the state’s national lead in job creation, attracting more than 280 new corporate headquarters since 2015, and its status as a perennial front-runner in economic development projects.

“Texas remains number one because people and businesses are choosing our state over any other for the unmatched competitive advantages we offer: no corporate or personal income taxes, a predictable regulatory climate, and a young, skilled, diverse, and growing workforce,” the spokesman wrote.

While Texas didn’t fare as well in this year’s CNBC study, it can brag about its 2023 designation as Business Facilities magazine’s state with the best business climate. In second place: North Carolina.

“The strength and sustained momentum of the Texas economy made the state a clear choice for [No. 1] in this year’s rankings,” Anne Cosgrove, editorial director of Business Facilities, says in a June 26 statement. “Taking the top spot this year is based not only on the impressive capital investment and job creation numbers, but also for diversity of industries, robust infrastructure, and a business-friendly regulatory and tax climate.”

Abbott took the opportunity to publicize the No. 1 ranking from Business Facilities.

“When businesses succeed, so do Texans — and our business climate ensures that Texas continues to offer world-class educational opportunities, good-paying careers to support families, and endless possibilities to prosper,” Abbott says in a news release.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Microsoft partners with Rice University's OpenStax on AI teaching tool

group project

Rice University’s OpenStax and Microsoft are partnering to integrate the nonprofit’s content with the tech giant’s AI innovation, known as Learning Zone.

“At OpenStax, our mission is to make an amazing education accessible to all,” Richard G. Baraniuk, founder and director of OpenStax, said in a news release. “That’s why we’re excited to integrate our trustworthy, peer-reviewed content with Microsoft’s AI technology through the Microsoft Learning Zone. Together, we aim to help more instructors and their students access engaging, effective learning experiences in new and dynamic ways. We also share a strong commitment to the thoughtful and responsible application of AI to better ensure all learners can succeed.”

OpenStax is a provider of affordable instructional technologies and is also one of the world’s largest publishers of open educational resources (OER).

Microsoft Learning Zone promises to provide educators and students with “responsible AI technology and peer-reviewed educational content to support learning” on Microsoft Copilot+ PCs. Microsoft Learning Zone works by utilizing on-device AI to generate interactive lessons for students, and its integration with OpenStax content means educators can rely on OpenStax’s digital library of 80 openly licensed titles.

The goal is for educators to create effective and engaging learning experiences safely, thereby bypassing the need to source and vet content independently. Included is a library of ready-to-use lessons, opportunity for immediate feedback and differentiated learning. Educators will maintain control of instructional content and pedagogical strategies and will be able to update or edit lessons or activities prior to sharing them with students.

Other tools included in the Microsoft Learning Zone are additional languages, reading coaching, public speaking help, math and reading progress, and a partnership with the online quiz platform Kahoot!

OpenStax resources have been reported as used across 153 countries, and this current collaboration combines the power and potential of responsible AI usage in education with content that has been utilized by 13,569 K-12 schools and 71 percent of U.S. colleges and universities, according to Rice.

“Through our partnership with OpenStax, we’re combining the power of on-device AI in Copilot+ PCs with OpenStax’s trusted and diverse peer-reviewed content to help educators quickly create high-quality, personalized, engaging lessons,” Deirdre Quarnstrom, vice president of Microsoft Education, added in the news release. “We’re excited about how this collaboration will empower classrooms globally.”

Houston ranks among the 15 best cities in America for 2025

Ranking It

A new national report ranking the best cities in America has declared Houston is the 13th best U.S. city in 2025.

The annual "America's Best Cities" report from Resonance Consultancy, a Canada-based real estate and tourism marketing firm, ranks the relative qualities of livability, cultural "lovability," and economic prosperity in America's principal cities with metropolitan populations of 500,000 or more.

These top 100 cities "brilliantly weave local culture with economic prospects, aligning with global and domestic travel trends to create premier experiences for both residents and travelers."

Houston's new placement is three spots lower than its triumphant No. 10 rank in 2024. Though it no longer holds a prized top-10 spot, the report hails Houston as a "coveted hometown for the best and brightest on earth."

Among Houston's other shining attributes are its booming population growth – which has now grown to a staggering 7.51 million people – plus its competitive real estate market and a vibrant hospitality and culinary scene. Additionally, Houston earned a well-deserved No. 4 rank in the report's "restaurants" subcategory.

"A 221-room Home2 Suites/Tru by Hilton debuted near Toyota Center in March, while Marriott’s newly renovated Residence Inn NASA/Clear Lake keeps surging visitors happy," the report said. "West Houston’s Greenside will convert 35,000 square feet of warehouses into a park-laced retail hub by 2026, while America’s inaugural Ismaili Center, rising along Allen Parkway, remains on schedule for later this year, adding yet another cultural jewel to H-Town’s festival-fueled mosaic."

The report additionally puts a large focus on Houston's innovative energy sector and its numerous large companies that boost the local economy and create thousands of jobs. Several of these Houston-based companies are some of the best places to work, according to U.S. News and World Report.

One such company that was specifically praised in the report was the HyVelocity Hub, which aims to "ensure economic resilience and long-lasting, domestic energy production" along the Gulf Coast.

"The HyVelocity Hydrogen Hub just locked in up to $1.2 billion from the U.S. DOE, targeting 45,000 jobs and slicing 7.7 million tons of CO₂ a year," the report said.

Elsewhere in Texas

Dallas (No. 14) and Austin (No. 15) ranked right behind Houston in the top 20, while San Antonio sank into the No. 41 spot after previously ranking 32nd last year. El Paso also fell from No. 83 in 2024 to No. 100 this year.

Jason McGrath, the executive vice president and head of U.S. Corporate Reputation at Ipsos, said in the report that American cities are proving their resiliency as they are faced with "climate issues, increasing infrastructural demands, and shifting geopolitical landscapes affecting international relations and travel."

"Despite these hurdles, cities are creatively reinventing themselves to shine as examples of cultural vibrancy and innovation, keeping their competitive edge both locally and globally," McGrath said. "Our report shows that the allure of American cities remains strong, thanks to their rich diversity and vast attractions — from natural wonders to buzzing cultural hubs."

The top 10 best cities in America in 2025 are:

  • No. 1 – New York City, New York
  • No. 2 – Los Angeles, California
  • No. 3 – Chicago, Illinois
  • No. 4 – San Francisco, California
  • No. 5 – Seattle, Washington
  • No. 6 – Miami, Florida
  • No. 7 – Boston, Massachusetts
  • No. 8 – Washington, D.C.
  • No. 9 – Las Vegas, Nevada
  • No. 10 – San Diego, California
---

This article originally appeared on CultureMap.com.

Houston biosciences company opens new sequencing center for drug development

bioscience breakthroughs

Houston-based Avance Biosciences has launched the Next-Generation Sequencing Center of Excellence, designed to enhance the company’s sequencing capabilities for drug development. Specifically, the facility at the company’s main campus in Northwest Houston will pursue breakthroughs in biologics, cell therapy and gene therapy.

In the drug industry, sequencing refers to studying nucleotides in DNA and RNA molecules. Nucleotides are the building blocks of DNA and RNA.

“This is a major milestone for Avance Biosciences as we continue to support the evolving needs of biologics and cell and gene therapy developers,” Xuening “James” Huang, co-founder, CEO and chief technology officer of Avance, said in a news release. “By consolidating state-of-the-art sequencing platforms and scientific talent, we’ve created a highly capable organization ready to solve complex genomic challenges with precision and compliance.”

In 2013, Avance rolled out next-generation sequencing (NGS) that complies with federal guidelines. Since then, Avance “has remained at the forefront of regulated sequencing services,” the company said. “The launch of the (new center) strengthens the company’s ability to deliver accurate, reproducible, and regulatory-aligned sequencing data across a wide array of therapeutic modalities.”

Cal Froberg, senior vice president of sales and marketing at Avance, said pharmaceutical and biotech clients trust the company’s technical capabilities and regulatory compliance.

“With the ever-changing global landscape and increasing scrutiny around international sample shipments, conducting advanced, cost-effective NGS testing domestically is now more feasible than ever,” Froberg said. “Our clients have confidence that their samples will remain in the U.S.”

Avance, founded in 2010, plans to hold an open house at the new facility in September to showcase its capabilities, technology, talent, and services. The company’s services include sequencing, molecular biology, cell-based testing, and bioanalytical testing.
View All Listings