progress report
Texas cities see mixed results on list of top markets to start a business
While the Lone Star State secured top marks for states to launch a company, Houston was a bit outpaced by two of its sister cities.
According to a study by The Credit Review, a personal finance website, Texas was one of the best states in which to start a small business in 2023. In fact, Austin was the No. 1 city in the list entitled "25 Best U.S. Metros to Start a Small Business in High-Growth Sectors," which came out at the end of November.
“There are so many reasons why Austin is the best place to start a small business that it would require another article to explain them all,” the article reads.
Austin grabbed the top spot as the best city to start a small business in America in the top five sectors, including arts, entertainment, and recreation; and information services.
But that’s not the only reason that Texas was a winner. Dallas was No. 8 on the list for its fast growth in the area of management of companies and enterprises, while Houston was No. 22.
On the other hand, McAllen and El Paso were among the worst places in the country to start a small business. With McAllen’s 29.3 percent poverty rate, it comes in last for the entire country.
The Credit Review, which hails from Austin, compared the 100 largest MSAs in the United States for fast-growth and small business-survivability indicators such as population change, GDP, and the state of fastest-growing business sectors based on growth projections for 2021-2031 in each MSA. The team’s sources include the U.S. census, U.S. Bureau of Labor Statistics, Tax Foundation, and U.S. Courts.
It's worth noting that Houston’s GDP per capita score was one of the highest on the list, 8.9 out of 10. (Austin’s was 9.3.) The metro area, which also included Sugarland and The Woodlands, was noted for its top sector, arts, and entertainment.
Earlier this year, Texas ranked highly on two separate lists evaluating the best states to start a business. In January, the state ranked No. 3 on WalletHub's annual report, and then in April, Texas cinched No. 3 on Credit on Tap's ranking.