lone star startups

Report: Texas ranks as the best state to start a business

How's startup life in Texas? Well, it's the best in the nation, according to a new ranking. Photo via Getty Images

If you're a Texan looking to launch a startup, you appear to be in the right place.

Personal finance website WalletHub puts Texas at No. 1 in its new ranking of the best and worst states for starting a business. Across the 50 states, WalletHub compared 28 key indicators of startup success to come up with the list.

In the general bucket for "business environment," Texas ranked second. It dropped to 12th in the "access to resources" category and 32nd in the "business costs" category. Digging deeper, Texas appears at No. 4 for the average length of the workweek, No. 5 for the highest total spending on incentives as a percentage of GDP, and No. 6 for average growth in number of small businesses. However, Texas scored a below-average 29th-place ranking for labor costs.

"Choosing the right state for a business is … crucial to its success," WalletHub explains. "A state that provides the ideal conditions for business creation — access to cash, skilled workers, and affordable office space, for instance — can help new ventures not only take off but also thrive."

The WalletHub accolade follows a handful of other recent plaudits for Texas' business-friendly environment.

In March, Site Selection magazine awarded its Governor's Cup to Texas. The Governor's Cup honors the top states for job creation and capital investment.

"Despite the challenges faced from the COVID-19 pandemic, we've seen what Texas can achieve when we foster an environment that empowers people to succeed," Gov. Greg Abbott said in a statement about the Governor's Cup win. "The Texas model continues to inspire entrepreneurs and innovators and attract job creators from across the country, and I look forward to spurring more job growth and opportunity for all Texans in every corner of our great state."

A month later, Chief Executive magazine crowned Texas the best state for business for the 17th consecutive year.

But Texas ranked fourth in CNBC's recent rundown of the top states for business in 2021. "A fourth-place finish would be good for most states, but not Texas. This year's finish ties for the worst-ever for the four-time Top State, which last won in 2018," CNBC says.

CNBC says Texas finished fourth based on the strength of its workforce and economy.

"But Texas was hurt this year by policies that run counter to the study's increased focus on inclusiveness," adds CNBC, pointing out that Abbott is pressing ahead with these policies during the current special session of the Texas Legislature.

Abbott's agenda for the special session includes legislation that critics view as watering down voting rights, attacking public school education about racism, and punishing transgender competitors in school sports. Supporters say these measures would preserve election integrity, strip critical race theory from public education in Texas, and protect females participating in school sports whose gender identity aligns with their birth gender.

Trending News

Building Houston

 
 

Fluence Analytics has exited to a multinational Japanese engineering and software giant. Image via FluenceAnalytics.com

A Houston company that provides analytics solutions within the chemicals industry has exited to a Japanese company.

Yokogawa acquired Fluence Analytics Inc. in a deal announced today. The terms of the deal were not disclosed and, effective immediately, the company operate as Yokogawa Fluence Analytics. Jay Manouchehri, who joined the company in 2022, will continue to serve as CEO of the entity.

“Combining forces with Yokogawa Electric enables us to capture the full value of our unique data sets, and we can't wait to deliver this added value to our customers," Manouchehri says in a news release. "Together, we will enable autonomous operations and digital transformation in the polymer and biopharma industries."

Founded in 2012 in New Orleans, Fluence Analytics moved to Houston in 2021 following a $7.5 million venture capital raise led by Yokogawa Electric Corp., which has its North American headquarters in Sugar Land.

The company's technology — automatic continuous online monitoring of polymerizations (ACOMP) product — provides real-time analytics solutions to polymer and biopharmaceutical companies worldwide. According to the company, its ACOMP product is the only commercially available system that can measure and analyze multiple polymer properties in real time, which leads to an improved system and less energy consumption and waste.

“Polymers are used in nearly every aspect of modern society in the form of plastics, rubber, paint, and so on," says Kenji Hasegawa, a Yokogawa Electric vice president and head of the Yokogawa Products Headquarters, in the release. "Combining Fluence Analytics' ACOMP system and other technology with our industry know-how will enable us to work with our customers to digitalize and automate polymerization processes that are currently monitored and adjusted manually.

"This will assist customers to improve worker safety, profitability, and environmental performance. We also plan to apply this technology to polymer re-use. We believe this is truly a game-changer for the industry,” he continues.

Fluence Analytics offices in Stafford, just southwest of Houston and has a team of 25 employees. Last fall, Fluence Analytics won in the Hardtech Category of the Houston Innovation Awards.

Trending News