Small Businesses in Texas

A Healthy Business Environment that Encourages Growth

Looking to start a business in Texas? Luckily, we have plenty of resources available to get you started on the path to success.

Texas, selected the No. 1 state for small business job growth in 2021, provides a welcoming environment for entrepreneurs, thanks to a variety of factors, including its highly skilled workforce, excellent geographic location, low tax burden, reasonable cost of living and predictable regulatory environment. In addition, Texas boasts a strong history of innovation from aerospace advancements like the Johnson Space Center in Houston to biomedical achievements like the first artificial heart transplant at the Texas Heart Institute. Today, Texas continues this legacy of innovation with cutting-edge research at Texas Biomedical Research Institute. As a result, Texas cities are ranked as top innovators in the tech realm.

If you’re thinking of launching a business, there is no better place to do so than in Texas. Here’s why small companies are moving to Texas to pursue their dreams of growth and success.


Business people walk through the Toyota open-concept lobby in Texas.

#1 Best State to Start a Business

Lendio 2023
Governor Abbott meets with Tamala Austin, the owner of J.I.V.E Juice

#1 Best State for Women Entrepreneurs

Merchant Maverick 2022
A group of four employees sits at a table conducting a business meeting.

#1 Tech Town in the U.S (Austin-Round Rock)

Best Colleges 2022
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#1 Best Business Climate

Business Facilities 2023
Female entrepreneur
Texas State Capitol
Woman in high tech career
Overview of man working at a flower shop
Two women coffeehouse owners
  • Starting a Business Here
  • Small Business Incentives and Resources
  • Innovation in Texas
  • Texas Small Business Statistics
  • Texas Small Business Grants
Starting a Business Here
Female entrepreneur

Texas is a Launchpad to Success for Your Business

The Lone Star State’s healthy entrepreneurial environment leads to success for many businesses that get their start here.

Starting a business in Texas requires you to complete a number of basic steps and make some key decisions. As part of your overall plan, you’ll need to select a location, decide on a business structure, and obtain the necessary licenses and permits. Additionally, determining which financing options will meet your short-term needs and long-term goals is crucial. For more detailed information, please find information on the Office of the Governor’s business site here.

Small Business Incentives and Resources
Texas State Capitol

Small Business Incentives and Resources in Texas

A combination of both statewide programs and local incentives are designed to help your company start off on the path to success.

The Skills for Small Business Program offers financing tuition and fees for community and technical college courses. This program, run by the Texas Workforce Commission, is targeted to help current and newly hired employees of small businesses. Other helpful resources in Texas and nationwide include:

Innovation in Texas
Woman in high tech career

Driving Innovation in the Lone Star State

With a strong historical background in innovation, Texas continues to make strides in fields like tech, energy, life sciences and more.

With three cities (Dallas at No. 2, San Antonio at No. 7 and Temple at No. 10) on Fortune’s 2019 list of Top Ten U.S. Cities for Tech Jobs, Texas is an established leader in the tech space. Austin was ranked the No. 1 Tech Town in a 2021 CompTIA report. Meanwhile, cutting-edge research is conducted at universities like Texas Tech, University of North Texas, The University of Texas at Arlington and The University of Texas at Dallas — all of which have been recognized as Tier 1 universities for their research activity.

Texas innovation is transforming industries. Over the past decade, Texas has won more awards for a healthy business climate and job growth than all the other states combined. Innovation in Texas is a strong force propelling extraordinary economic growth.

Find out more about the many Texas business incentives for small businesses and how they can promote innovation in your enterprise.

Texas Small Business Statistics
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Small Businesses are Big Job Creators

The Texas business climate is second to none. While the Lone Star State is famous for the Fortune 500 companies located here, 99.8% of the state’s 3.1 million businesses are small businesses. Hispanic and minority-owned businesses account for more than 2 million employees. The state has 37,421 small business exporters responsible for exporting $105 billion in goods in 2021.

According to the U.S. Small Business Association, Texas small businesses employ 45.1% of the private workforce, or 4.9 million people, a number that is expected to grow. Firms with fewer than 100 employees have the largest share of small business employment.

Texas Small Business Grants
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Support for Small Businesses

Opportunities for small businesses in Texas abound. If you’re considering starting a small business in Texas, take advantage of the numerous Texas small business grants.

State-funded grants for Texas workforce education development ensure companies can provide customized training to workers to stay competitive in their industries. For example, the Texas Workforce Commission provides the Skills for Small Business grants, which support businesses with fewer than 100 employees by incentivizing training for full-time new workers. Grants are also available on the county level for eligible small businesses.

Besides Texas grants for small businesses, entrepreneurs can benefit from assistance with obtaining a Texas small business license, regulatory compliance and resource referrals. Informational small business events and webinars are part of the robust support provided to small businesses and start-ups.