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Making The Grade

Texas earns coveted title as best state for small businesses

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Austin is the fourth-best city in the country for small-business friendliness. Kumar Appaiah/ Flickr
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Houston earned the highest ranking in the Lone Star State at No. 3. Courtesy of Greater Houston Convention and Visitors Bureau
Dallas skyline
Dallas may be big, but it's also a friendly city for small businesses. Courtesy photo
Sundance Square in Fort Worth
Fort Worth earned a No. 7 ranking for small-business friendliness. Photo courtesy of Bamboo Leasing
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San Antonio scored a spot in the top 10 cities for small business. Courtesy photo
Austin skyline city buildings
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Dallas skyline
Sundance Square in Fort Worth
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According to a new survey, Texas is the best place in America for small businesses. Thumbtack.com and the Ewing Marion Kauffman Foundation released the annual United States Small Business Friendliness survey on June 17, and five of the top 10 friendliest cities for small businesses are in Texas.

"Small businesses rated Texas No. 1 in the country for the friendliness of its zoning laws and the friendliness of its health and safety regulations," the survey reads. Researchers praised every aspect of small-business life in Texas, and none of the 11 categories received less than an "A" grade at the state level.

City-wise, Houston earned the highest ranking in the Lone Star State at No. 3; Austin nabbed the No. 4 slot, followed by Dallas (No. 6), Fort Worth (No. 7) and San Antonio (No. 8).

Austin earned an A+ ranking in seven categories, including overall friendliness and regulations. Austin's lowest grade was an A-, received in the ease of hiring category. 

The survey includes data from more than 12,500 small businesses across the country. In addition to the Lone Star State locales mentioned above, Colorado Springs, Boise and Louisville also performed well in the survey. On the other end of the spectrum, Sacramento, Providence, Buffalo, Bridgeport and San Diego rounded out the worst cities for starting a small business.

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