Austin a Hotbed of New Business Opportunities

May 2017
Austin Business Journal

Texas has been a hotbed of new business over the last decade and the state prides itself on its business-friendly policies and culture. But which of the state's cities are the best for startups?

Using the metrics of overall business environment, access to resources and business costs, WalletHub ranked the country's 150 best large cities to start a business. Texas cities made a strong showing with seven of the top 25 cities nationally. Austin came out on top in Texas at No. 8 nationally, followed closely by Amarillo at No. 9.

While the Texas capital ranked highly, the breakdown by WalletHub hinted at some of its familiar challenges: Austin ranked No. 9 nationally for "access to resources," which measured factors like venture capital funding per capita and the local talent pool. That was behind startup hotbeds like Boston and San Francisco as well as less-traditional places such as Madison, Wisconsin; Lincoln, Nebraska; and Richmond, Virginia. Austin also ranked No. 127 nationally for "business costs," which looked at the cost of office space and cost of living, among other things.

In the "business environment" category, Austin came in at No. 4 nationally — behind San Antonio at No. 2. The factors in the business environment category included the length of the average work week, average growth in number of small businesses, startups per capita, average growth of business revenues, the five-year business survival rate, industry variety and an entrepreneurship index.