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The Best 100 Towns in Texas for Starting a Small Business

In more ways than one, Texas is big.

​By both area and population, Texas is the second largest state in the United States. The Lone Star State has the second most electoral votes in the country. There are three cities in Texas with a population above one million: Houston, San Antonio, and Dallas. Two more cities, Austin and Fort Worth, are pushing the million-person mark.

Since 2002, Texas has led the U.S. in export revenue and has had the second highest gross-state product. Were it a country, Texas would have the 10th largest economy in the world. 

While everything in Texas seems to be super-sized, one can still appreciate the smaller, finer things in the state. 

That is especially true when it comes to small businesses in the Lone Star State. Bigger isn't always better, and small businesses in Texas can attest to that motto. Every American can appreciate a small business that puts a little extra tender, lovin' care into their products, as opposed to Walmart goods that are made on a conveyor belt.

Despite all of its grandiosity, Texas is still home to many towns and cities that offer some of the best small businesses around. LendEDU has recognized the 100 towns and cities in the Lone Star State that have become the very best for starting small business. 

Using licensed data, we analyzed over 1,000 Texas communities based on their conduciveness to small businesses. The following three parameters were used to judge each town and city:

  1. ​Population Score (20%, listed in table as Pop.)
  2. Income Score (40%, listed in table as Income)
  3. Expenses Score (40%, listed in table as Expenses)

Each parameter featured a few sub-metrics that were used to calculate the total score for each parameter. Afterwords, every Texas community's three parameter scores were summed together to get the final score. The entire process is explained further in the methodology at the bottom of this page.

Below, you will be able to see the 100 towns and cities in Texas that LendEDU has recognized as the very best for starting a small business.

Check out the full ranking list and map here