We're No. 1
The Texas business sector has a pretty impressive winning streak when its compared to the rest of the country.
For the 19th consecutive year, CEOs surveyed by Chief Executive magazine have named Texas the best state for business. For its annual survey, the magazine questions CEOs about each state’s business climate, workforce, and quality of life.
“The state’s combination of business-friendly policies, growing cities, a rising professional class, and a direct appeal to CEOs who aren’t happy with California continues to keep Texas at the head of the class,” the magazine says.
Texas Gov. Greg Abbott touted the Chief Executive honor in a recent news release.
“Texas is attractive to CEOs and their businesses because we offer the freedom and opportunity that cannot be found elsewhere: no state income tax; a stable, predictable regulatory structure; and a young, educated, and growing workforce ready to take on the jobs of tomorrow,” the governor says. “Workers know that in Texas you can find a good home, a great education for your children, and plenty of companies that provide an ample income to support their family.”
The Chief Executive accolade comes almost two months after Texas claimed its 11th straight Governor’s Cup from Site Selection magazine. The Governor’s Cup recognizes the nation’s top-performing state for job-creating business relocations and expansions.
“Texas truly is America’s economic engine, and we stand apart as a model for the nation,” Abbott said in a March 2023 news release about the Governor’s Cup victory.
Another report, from business credit card experts Capital on Tap, deemed Texas as the second best state to start a small business, right after Florida. They retrieved their data from the U.S. Bureau of Labor Statistics based on several factors, including new firm survival rates, corporate tax rates, the number of entrepreneurs per state, and more. The Lone Star State's friendly tax framework and lack of income tax was among the reasons cited by that study. Additionally, if a small business owner in Texas needed to take out a loan, they’d be able to secure $4,811 per employee, which is the fifth-highest average loan amount in a calculation of all 50 states.
Meanwhile, WalletHub, a personal finance resource website, ranked Texas as the third best state to start a business in its recent list, 2023's Best & Worst States to Start a Business, with a score of 56.85 points. Texas ranked behind Utah, No. 1, and Florida, No. 2, and just ahead of Colorado. Idaho, Georgia, Arizona, Nevada, Oklahoma, and California make up the rest of the top 10, respectively.
Whatever the study, Texas ranks high on any list of states recognized for their business climate.