When it comes to launching a business in Texas, Austin still draws the bulk of the attention. But entrepreneurs shouldn’t overlook one Dallas suburb.
Personal finance website WalletHub ranks Farmers Branch as one of the best small cities in Texas for starting a business. The website classifies a small city as one with a population of 25,000 to 100,000.
To determine the best small cities for startups, WalletHub compared the business-friendly nature of more than 1,300 small cities across the country. Among the factors it examined were average growth in number of businesses, labor costs, and investor access.
Farmers Branch appears at No. 102 on the list overall, and No. 2 in Texas. It scored particularly well in the category called "business environment" (No. 23). It was the only DFW city to rank inside the top 200. Examples of others in the survey are: Haltom City (No. 406), The Colony (No. 436), Grapevine (No. 457), Flower Mound (No. 733).
The three other North Texas cities that even come close to Farmers Branch are Greenville (No. 275), Waxahachie (No. 306), and Hurst (No. 312).
The news gets better for big cities, however. In a separate WalletHub report of Best Large Cities to Start a Business, Fort Worth ranks No. 15 and Dallas ranks No. 20 nationally. Arlington lands at No. 24; Irving, No. 30; Garland, 61; and Plano, 66.
In terms of smaller cities, the Austin suburb of Georgetown scores highest of any Texas city; it appears at No. 70 on the list overall, and No. 1 in Texas. It scored well in the access to resources category (No. 26) and business environment category (No. 31).
Washington, Utah, nabbed the top spot nationally.
Georgetown, the county seat of Williamson County, remains one of the fastest-growing cities in the country. Its population jumped 42 percent from 2010 to 2020, according to the U.S. Census Bureau.
“Size matters when choosing a city in which to launch a startup. As many veteran entrepreneurs — and failed startups — understand well, bigger is not always better,” WalletHub says. “A city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s type of business and personal preferences.”
Elsewhere in the Austin metro area, Pflugerville lands at No. 150 nationally in the WalletHub rankings; San Marcos, No. 181; Leander, No. 250; Kyle, No. 258; and Cedar Park, No. 280.
Other highly ranked cities in Texas include:
- West Odessa, No. 193
- Texas City (Houston), No. 202
- Baytown (Houston), No. 267
- Huntsville, No. 308
- Socorro (El Paso), No. 339
- Deer Park (Houston), No. 362
- Sherman, No. 368
- Conroe (Houston), No. 369
- Seguin (San Antonio), No. 375
Baytown, Port Arthur, and Texas City tied for first place in the U.S. in terms of highest average revenue per business.