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Dallas ranks among top 10 U.S. metros to start a business in new report

Dallas is a great place to start a biz.

Photo courtesy of The Riveter

A trio of Texas cities that were just recognized among the world's best have a new accolade to celebrate: they also rank among the best places to start a business.

Commercial real estate website 42Floors has named Austin (No. 3), Dallas (No. 8), and Houston (No. 9) to its list of the best U.S. metros to start a business, making Texas the top state for startup-friendly metros.

For the report, 42Floors "sought to determine which metros offered a mix of opportunity and affordability," focusing on those with at least 300,000 residents.

"Starting out in a business-friendly environment, being able to afford a small office, or even having access to the right consulting services and networking opportunities can all contribute to your new business’s chances for success."

All of this was considered in the rankings, which looked at such metrics as the metro's share of startups, number of coworking spaces, average labor costs per employee, regional price parity, taxes, and more.

Coming in at No. 3, "Austin has cemented itself as the epicenter of startup activity in Texas, with 43 percent of its metro’s companies established less than five years ago," notes the report. Austin also has the "third-lowest establishment exit rate, denoting a higher degree of new business survivability than other places."

No. 8 Dallas, the report notes, has a "slightly lower establishment exit rate and a higher density of coworking spaces," and Big D boasts more affordable office space than Houston ($1,300 less per year, according to the report).

Regarding No. 9 Houston, the report says, "Space City distinguished itself with a cost of living on par with the national average (and 5 percent lower than that of Dallas)," while also having the lowest average labor costs per employee, $45,750, among the Texas cities in the top 10.

While San Antonio didn't make the top 10, the report notes it had a "good showing with potential for entrepreneurs," and came it at No. 19 overall. The No. 1 metro to start a business, says 42Floors, is Las Vegas.

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