These are the best small cities in Texas to start a business

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WalletHub ranks these Texas towns among the best for starting a business. Photo via Getty Images

When it comes to launching a business in Texas, you might want to look into the suburbs that surround the state's major metros.

Personal finance website WalletHub ranked the best and worst small towns to start a business — and the Lone Star State had plenty of suburbs making the top 400 in the list of more than 1,300 towns.

The report found that Georgetown as the best small city in Texas for starting a business. The website classifies a small city as one with a population of 25,000 to 100,000. The Austin suburb appears at No. 70 on the list overall, and No. 1 in Texas. It scored particularly well in the access to resources category (No. 26) and business environment category (No. 31).

To determine the best small cities for startups, WalletHub compared the business-friendly nature of more than 1,300 small cities across the country. Among the factors it examined were average growth in number of businesses, labor costs, and investor access.

Houston suburbs didn't manage to crack the top 200, but four were recognized amongst the rest of the best small busissiness towns:

  • Texas City , No. 202
  • Baytown, No. 267
  • Deer Park, No. 362
  • Conroe, No. 369

Washington, Utah, nabbed the top spot nationally, along with four other Utah cities in the top 10.

“Size matters when choosing a city in which to launch a startup. As many veteran entrepreneurs — and failed startups — understand well, bigger is not always better,” WalletHub says. “A city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s type of business and personal preferences.”

Elsewhere in Texas, other highly ranked small cities in include:

  • Farmers Branch (Dallas-Fort Worth), No. 102
  • Pflugerville lands (Austin), No. 150
  • San Marcos (Austin), No. 181
  • West Odessa, No. 193
  • Leander (Austin), No. 250
  • Kyle (Austin), No. 258
  • Greenville (Dallas-Fort Worth), No. 275
  • Cedar Park (Austin), No. 280
  • Waxahachie (Dallas-Fort Worth), No. 306
  • Huntsville, No. 308
  • Hurst (Dallas-Fort Worth), No. 312
  • Socorro (El Paso), No. 339
  • Sherman, No. 368
  • Seguin (San Antonio), No. 375

Baytown, Port Arthur, and Texas City tied for first place in the U.S. in terms of highest average revenue per business.

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This article originally ran on CultureMap.

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Houston legacy planning platform secures $2.5M investment, adds to board

fresh funding

Houston-based Paige, a comprehensive life planning and succession software company, has secured a $2.5 million investment to expand the AI-driven tools on its platform.

The funding comes from Alabama-based 22nd State Banking Company, according to a news release. Paige says it will use the funding to expand automation, AI-driven onboarding and self-service tools, as well as add to its sales and customer success teams.

The company was originally founded by CEO Emily Cisek in 2020 as The Postage and rebranded to Paige last year. It helps users navigate and organize end-of-life planning with features like document storage and organization, password management, and funeral and last wishes planning.

“Too many families are left trying to piece together important information during some of the hardest moments of their lives,” Cisek said in the news release. “This investment allows us to accelerate the next phase of growth for Paige by improving the product and expanding support for our members, our financial institution partners and the communities they serve,”

In addition to the funding news, the company also announced that 22nd State Banking CEO and President Steve Smith will join Paige's board of directors.

“We believe banking should be grounded in relationships and built around the real needs of the people and communities we serve. Paige brings something deeply relevant to that mission," Smith added in the release. "It helps families prepare for the future in a practical and meaningful way, and it gives the banking community new pathways to support customers through important life transitions.”

Paige estimates that $124 trillion in assets will change hands through 2048. Yet about 56 percent of Americans do not have an estate plan.

Read more on the topic from Cisek in a recent op-ed here; or listen to InnovationMap's 2021 interview with her here.

Houston digital health platform Koda lands strategic investment

money moves

Houston-based advance care planning platform Koda Health has added another investor to the lineup.

The company secured a strategic investment for an undisclosed amount from UPMC Enterprises, the commercialization arm of the University of Pittsburgh Medical Center. The funding is part of Koda's oversubscribed series A funding round that closed in October, according to a release.

"UPMC Enterprises’ investment is a meaningful signal, not just to Koda, but to the broader market," Dr. Desh Mohan, chief medical officer and co-founder of Koda Health, said in the news release. "It validates that health systems are ready to invest in infrastructure that makes advance care planning work the way it should: proactively, at scale, and with the human support that these conversations require. Having UPMC Enterprises as a strategic investor puts us in a unique position to prove what's possible."

Koda has raised $14 million to date, according to a representative from the company. Its series A round was led by Evidenced, with participation from Mudita Venture Partners, Techstars and the Texas Medical Center last year. At the time, the company said the funding would allow it to scale operations and expand engineering, clinical strategy and customer success. The company described the round as a "pivotal moment," as it had secured investments from influential leaders in the healthcare and venture capital space.

Koda Health, which was born out of the TMC's Biodesign Fellowship in 2020, saw major growth last year, as well, and now supports more than 1 million patients nationwide through partnerships with Cigna Healthcare, Privia Health, Guidehealth, Sentara, UPMC and Memorial Hermann Health System.

The company integrated its end-of-life care planning platform with Dallas-based Guidehealth in April 2025 and with Epic Systems in July 2025. It also won the 2025 Houston Innovation Award in the Health Tech Business category. Read more here.

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UH med school granted $2M gift to offer student scholarships

A new scholarship endowment aims to support students in the University of Houston’s recently established medical school. The University of Houston’s Tilman J. Fertitta Family College of Medicine received a planned estate gift commitment estimated at $2.1 million to establish the Bob Diehl and Teresa Evans Diehl Scholarship Endowment. The scholarship will assist full-time medical students who demonstrate financial need and meet academic standards. Continue reading.

How Houston innovators played a role in the historic Artemis II splashdown

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Baylor scientist lands $2M grant to explore links between viruses and Alzheimer’s

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New UT Austin med center, anchored by MD Anderson, gets historic gift

A donation announced April 21 breaks a major record at the University of Texas at Austin. Michael and Susan Dell are now UT Austin's first supporters to give $1 billion. In response, the university will create the UT Dell Campus for Advanced Research and the UT Dell Medical Center to "advance human health," per a press release. Continue reading.

Houston VC funding surged nearly 50% in Q1 2026, report says

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First-quarter venture capital funding for Houston-area startups climbed nearly 50 percent compared to the same time last year, according to the PitchBook-NVCA Venture Monitor. In Q1 2026, Houston-area startups raised $532.3 million, a 49 percent jump from $320.2 million in Q1 2025, according to the PitchBook-NVCA Venture Monitor. However, the Q1 total fell 23 percent from the $671.05 million raised in Q4 2025. Continue reading.

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