News Summary
Texas has been named the Best State for Business for 21 consecutive years according to Chief Executive magazine’s annual survey. With a business-friendly climate, a diverse workforce, and an absence of state income tax, Texas offers countless opportunities for growth. Recent rankings from WalletHub also highlight Texas as the 4th best state to start a new business, boasting strong business environments in cities like Austin and Dallas-Fort Worth. As entrepreneurs continue to flock to the Lone Star State, the future looks promising for economic prosperity.
Texas has maintained its status as the Best State for Business for 21 consecutive years, according to the latest rankings released by Chief Executive magazine. This annual survey is based on feedback from top CEOs who evaluate the business climate, regulations, and overall environment for companies operating within the state.
Governor Greg Abbott has celebrated this achievement, attributing Texas’s enduring success to the freedoms it offers for businesses to thrive. He emphasized that the state provides an ideal business-friendly climate, which is supported by a highly skilled and diverse workforce.
In addition to being recognized by Chief Executive magazine, Texas has also seen improvements in other business-related rankings. In WalletHub’s 2025 list, Texas is now recognized as the 4th best state to start a new business, moving up from 8th in the previous year. This upward trend highlights the state’s commitment to fostering entrepreneurship.
The WalletHub ranking assessed various metrics including startup rates, job growth, financing accessibility, labor costs, and corporate tax rates. The only states ranked higher than Texas are Florida (1st), Georgia (2nd), and Utah (3rd), with Idaho also making the top five.
Within the WalletHub analysis, Texas excelled in the category of business environment, earning the top position based on metrics such as five-year business survival rates and average revenue growth for businesses. Nevertheless, the state was ranked 12th for access to resources and 34th for business costs. The diverse rankings indicate both strengths and challenges facing Texas entrepreneurs.
WalletHub analyst Chip Lupo pointed out the importance of a conducive business environment for startups, especially given the high failure rates new businesses often face.
Moreover, the city of Austin has been recognized as the 3rd best large city in which to start a business in the United States for 2025. This marks a notable rise from 8th place the previous year. Austin stands out for its robust business environment, earning the top rank in this category and a favorable 4th ranking for access to resources among 100 major U.S. cities.
The Dallas-Fort Worth area is also a hotbed for business growth, housing six of the 13 Texas cities that ranked in the top 50 for starting a business. Other cities such as Fort Worth (11th), Arlington (15th), Dallas (16th), and Houston (34th) are also notable mentions.
Texas boasts approximately 3.2 million small businesses, which account for over 99% of all businesses in the state. Such a high concentration of small businesses underlines Texas’s reputation as a primary hub for entrepreneurship.
In CNBC’s 2024 America’s Top States for Business, Texas has been ranked first for its workforce, which is appealing to both established companies and startups alike. The absence of a state income tax combined with a thriving economy serves as significant attractors for entrepreneurs looking to launch and expand their businesses.
Moreover, events like South by Southwest in Austin bolster Texas’s image as a center for innovation and entrepreneurship. Despite facing various challenges, Texas is primarily seen as supportive towards small business owners, offering resources such as Capital Factory, which provides networking opportunities and support for emerging businesses.
The overall environment of business-friendly policies in Texas positions the state exceptionally well for job creation and sustained economic growth, reinforcing its long-standing reputation as an optimal location for business endeavors.
Deeper Dive: News & Info About This Topic
- Statesman: Texas Ranked Best State for Business
- Business.com: Why Start a Business in Texas
- CultureMap Austin: Texas Best State to Start Business
- The Center Square: Texas Business Article
- Google Search: Texas business rankings
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
