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America's best cities to start a business? Austin is one of them

America's best cities to start a business? Austin is one of them

Link Coworking Austin office space business laptop working 2015
Austin has the fifth best business environment in the nation. Link Coworking/Facebook

Where to start a business is just as important as how to grow it — and Austin is one of the finest places for a new business to take root.

Austin ranks No. 20 on WalletHub's list of the best cities to start a business. The financial website analyzed the 150 most populous U.S. cities using metrics in three main categories: business environment, access to resources, and cost.

Austin offers the fifth best business environment in America, thanks to the fourth fastest growth rate of small businesses and a high number of startups (183 per 100,000 residents). Those businesses are met with ample resources (we rank No. 28 in that category), due in part to the Capital City's large amount of venture investment and our well-educated workforce.

Starting a business in Austin, however, does come at a cost. The city's lack of affordable office space, high labor costs, and high corporate taxes land it a dismal No. 118 ranking in the final category.

Overall, Texas is a hotbed for business. Amarillo and Lubbock lead the way at Nos. 10 and 15. Houston (No. 21), Corpus Christi (No. 23), San Antonio (No. 29), and Dallas (No. 30) round out the top 30.