After ranking as the third-best large U.S. city for starting a business last year, Austin took a surprising tumble into the 24th spot nationally for 2026.

WalletHub's annual report, "Best Large Cities to Start a Business (2026)" compared 100 U.S. cities based on 19 relevant metrics across three key dimensions: business environment, access to resources, and costs. Factors that were analyzed include five-year business survival rates, job growth comparisons from 2020 and 2024, population growth of working-age individuals aged 16-64, office space affordability, and more.

Florida cities locked other states out of the top five best places in America for starting a new business: Tampa, Orlando, Jacksonville, Hialeah, and St. Petersburg.

Austin's business environment ranked 11th best in the country, and the city ranked ninth in the "access to resources" category. The city also tied with Boise, Idaho, and Fresno, California, for the highest average growth in the number of small businesses nationally.

Austin lagged behind in the "business costs" ranking, coming in at No. 80 overall. This category examined metrics such as the city's working-age population growth, the share of college-educated individuals, financing accessibility, the prevalence of investors, venture investment amounts per capita, and more.

Earlier this year, WalletHub declared Texas the third-best state for starting a business in 2026, and several Houston-area cities have seen robust growth after being recognized among the best career hotspots in the U.S. WalletHub also ranked Austin on its top-10 list of the best U.S. cities to find a job. Entrepreneurial praise has also been extended to 15 Austin-based innovators that made Inc Magazine's 2026 Female Founders 500 list.

Texas cities with strong environments for new businesses
Multiple cities in the Dallas-Fort Worth Metroplex can claim bragging rights as the best Texas locales for starting a new business. Dallas ranked highest overall — appearing 11th nationally — and Irving landed a few spots behind in the 16th spot. Arlington (No. 23), Fort Worth (No. 30), Plano, (No. 35), and Garland (No. 65) followed behind.

Only six other Texas cities earned spots in the report: Houston (No. 26), Lubbock (No. 36), Corpus Christi (No. 39), San Antonio (No. 64), El Paso (No. 67), and Laredo (No. 76). Corpus Christi and Laredo also topped WalletHub's list of the U.S. cities with the most accessible financing.

"From the Gold Rush and the Industrial Revolution to the Internet Age, periods of innovation have shaped our economy and driven major societal progress," the report's author wrote. "However, the past few years have been particularly challenging for business owners in the U.S., due to factors such as the COVID-19 pandemic, the Great Resignation and high inflation."