It’s good to be an entrepreneur in Texas. But which cities are best to start a business? NerdWallet did a study to find out and discovered that the Dallas area boasts two in the top 10: Addison (No. 1) and Farmers Branch (No. 5).
To determine the rankings, researchers analyzed 200 places with populations of at least 10,000 to determine their business climates and economic health. Criteria included average revenue of businesses, percentage of businesses with paid employees, median annual income and housing costs and unemployment rate, among others.
Addison is praised for having the second-highest median annual income in the top 10 ($50,280), the second-highest number of businesses per 100 people (more than 26) and a low unemployment rate (3.9 percent). Even though the town is fairly small, it has lots of hotels and restaurants, and it’s also home to co-working space Addison TreeHouse (co-founded by the Town of Addison and the Dallas Entrepreneur Center) and companies like Mary Kay and Bottle Rocket.
Farmers Branch has the second-highest number of businesses in the top 10 (4,158) and comes in second for the largest number of businesses with paid employees (more than 1,700). Taco Bueno and Ironclad have corporate headquarters there.
The greater Houston area boasts five of the top 10 cities on the list: Webster, Stafford, Katy, Deer Park and Texas City. The Austin area didn’t show up in the top 10 at all, possibly due to the rising cost of living or the fact that the energy industry lacks a strong presence when compared to Houston and Dallas, according to NerdWallet.
Dallas proper ranks No. 115, Houston proper came in at No. 82 and Austin falls at No. 96. See the complete list on NerdWallet.