Hot or not

Dallas honored as one of America's hottest startup cities by Inc. mag

As a part of its annual Inc. 5000 findings, the magazine named Dallas the 10th hottest startup city in America.

Photo by Sean Pavone/iStock

It's not just Texas' weather that's hot. Three Lone Star State cities recently made Inc. magazine's list of hot startup cities, with Dallas landing at No. 10.

The list came out of the Inc. 5000 report — the magazine's list of the fastest-growing 5,000 privately held companies in the United States — and was ranked by the three-year revenue growth of each of the cities' companies.

Dallas boasted a three-year revenue growth of 113 percent, with 74 companies on the 2019 Inc. 5000 list.

The Big D is praised for its "low regulations, zero corporate income taxes, and the Dallas Entrepreneur Center, or DEC, which is a nonprofit organization serving as a hub for startup networking, funding, and mentorship," in the article, as well as having top companies such as computer consulting firm Allata (No. 40) and online sporting-goods seller OrderMyGear (No. 1,443).

Another Texas city on the list, Houston (No. 9), had a three-year revenue growth rate of 117 percent and 84 Inc. 5000 companies. The article calls out Houston for its construction industry, which "grew tremendously to help rebuild and repair" after Hurricane Harvey hit in 2017.

Near the top of the list is No. 2 Austin, which had a three-year revenue growth rate of 259 percent, with 87 Inc. 5000 companies.

Austin is praised for its "high rate of entrepreneurship and job creation" in the article, as well as for having outposts for top tech companies like Amazon, Apple, and Google. Inc. also highlights "innovative food businesses," including veggie noodle maker Cece's Veggie Co. (No. 3) and handcrafted chocolatier Maggie Louise Confections (No. 650).

Here's the full list:

San Francisco
Austin
New York City
San Diego
Atlanta
Denver
Los Angeles
Chicago
Houston
Dallas

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A version of this story originally was published on InnovationMap.

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State of innovation

Texas ranks among 5 best states to start a business in 2025

Photo by Mykyta Kravčenko on Unsplash

Texas' friendly business climate has allowed the state to regain its rightful position among the top five best states to start a new business.

As one of the largest states in the U.S., it's no surprise Texas is big on business and entrepreneurship. Now the state is earning new praise among WalletHub's 2025 list of "Best & Worst States to Start a Business."

The Lone Star State claimed the No. 4 spot in the report's rankings — putting Texas in a better shape than it was last year when it earned No. 8 in WalletHub's 2024 report.

The study compared all 50 states across 25 metrics to determine the best places to start, grow, and find success with a new business. Factors that were considered include the number of startups per capita, job growth rates, financing accessibility measures, labor costs, and corporate tax rates.

The three states to outperform Texas are Florida (No. 1), Georgia (No. 2), and Utah (No. 3). Idaho rounded out the top five.

Across the study's three main categories, Texas performed the best in the "business environment" rank, earning No. 1 nationally. This section compared the states based on its five-year business survival rates, average business revenues growth, and more.

Texas ranked No. 12 in the nationwide comparison of "access to resources" – which covers working age population growth, venture investment amounts per capita, and other means – and earned a fair No. 34 in the report's "business costs" ranking.

But Texas can still do better with its business friendliness to reclaim a top-three overall ranking, which the state last earned in 2023.

WalletHub analyst Chip Lupo said in the report that it is imperative for potential new business owners to establish their enterprise in a place that can maximize their ability to succeed.

"Around half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting, especially with the current high cost of living," Lupo said. "The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally."

Dallas has also proven to be at the top of the destination list for entrepreneurs who are looking for their next venture.

The top 10 best states to start a new business in 2025 are:

No. 1 – Florida
No. 2 – Georgia
No. 3 – Utah
No. 4 – Texas
No. 5 – Idaho
No. 6 – Oklahoma
No. 7 – Nevada
No. 8 – Colorado
No. 9 – Arizona
No. 10 – Kentucky

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