small successes
Austin tops new list as the best U.S. metro to start a small business
Austinites whose New Year's resolution is to start their own small business will be happy to learn they're in the right city to do it. Austin-Round Rock-Georgetown has been ranked the No. 1 best metropolitan area to start a small business in a new report.
The report by personal finance website The Credit Review touts the Austin area's rapid growth, its diverse economy, and its ever-expanding population as several attractive reasons for its top ranking.
"Austin is a cultural mecca filled with live music and nightlife that attracts talented young professionals and sparks creative ideas," the report's author wrote.
Small business owners in the city specifically thrive in three sectors: arts, entertainment, and recreation. The iconic "Keep Austin Weird" motto still rings true for many thriving local businesses — and thanks to that call to action, many Austinites maintain explicit cultural values around shopping local.
"Given that Austin is the yearly host of the celebrated South by Southwest conference, it’s not very surprising they ranked as the top metro area to start an arts and entertainment small business," the report said. "Austin ranked No. 1 overall for all small business purposes, but its thriving arts and culture scene is especially celebrated."
Austin is also the No. 1 destination for small businesses in the information services sector, the study found. Outsiders don't call Austin "Silicon Hills" for nothing, as the report states venture capitalists invested over $5.5 billion in more than 400 unspecified "deals" in Austin in 2021, which is more than double the amount in 2020.
With the shift to remote work, it's now much easier for Austinites to launch their business than ever before, the report claims. But in order to ensure longevity with a small business, the study suggests launching the venture in a place with the right number of resources and connections.
"The more resources a small business owner has, the better chances they have to succeed," the report says. "This is why, despite the overall shift to a remote-centric world, geographic location matters more than ever for a small business’s long-term success."
Another thriving Texas metro that earned a spot in the top 10 is Dallas-Fort Worth-Arlington (No. 8). The North Texas region is the No. 1 hotspot for businesses in the "management of companies and enterprises" industry, which widely includes finance and accounting companies.
Elsewhere in Texas, Houston-The Woodlands-Sugar Land ranked No. 22 and San Antonio-New Braunfels ranked No. 32.
The top 10 U.S. metros for starting a small business are:
- No. 1 – Austin-Round Rock-Georgetown, Texas
- No. 2 – Provo-Orem, Utah
- No. 3 – Raleigh-Cary, North Carolina
- No. 4 – Salt Lake City, Utah
- No. 5 – Boise, Idaho
- No. 6 – Nashville-Davidson-Murfreesboro-Franklin, Tennessee
- No. 7 – Jacksonville, Florida
- No. 8 – Dallas-Fort Worth-Arlington, Texas
- No. 9 – Charlotte-Concord-Gastonia, North Carolina-South Carolina
- No. 10 – North Port-Sarasota-Bradenton, Florida
The report analyzed the top 100 U.S. metro regions across 10 factors to determine the rankings, including unemployment rates, growth rates, new business success rates, and more.