Austin, TX, January 24, 2026
Texas has been ranked the third-best state for new business startups in 2026, according to a WalletHub study. This shift from eighth place in 2024 signifies an improving economic environment for entrepreneurs. Key attributes contributing to this ranking include a supportive business environment, high entrepreneurship rates, and a growing labor force. As the state continues to foster innovation and reduce regulatory burdens, Texas is becoming a favorable destination for aspiring business owners.
Texas Ranks Third for Business Startups in 2026
WalletHub Study Shows Positive Economic Climate for Entrepreneurs
Austin, TX — Texas continues to be a beacon for entrepreneurs as it has been ranked the third-best state for starting a business in 2026 by WalletHub. This remarkable leap from eighth place in 2024 and fourth in 2025 underscores the ongoing improvements in Texas’s business landscape, which is driven by an unwavering entrepreneurial spirit and a supportive regulatory environment.
With a firm commitment to reducing red tape and fostering innovation, Texas stands out as a prime location for aspiring business owners. The findings from the WalletHub study reflect the many factors contributing to the favorable conditions that Texas offers to small businesses, which ultimately drive economic growth across the state.
Key Factors Behind the Ranking
Texas’s resurgence in the rankings can be attributed to several crucial factors:
Business Environment
Securing the top spot in the business environment category, Texas demonstrates a robust and encouraging atmosphere for startups and established businesses alike.
Access to Resources
With a ranking of 11th for access to resources, entrepreneurs in Texas can tap into a wide array of essential tools and support systems, facilitating their paths to success.
Business Costs
Despite being placed 34th in business costs, Texas’s advantages in other areas often outweigh these expenses, ensuring a balanced economic outlook for new ventures.
Entrepreneurial Momentum in Texas
The report highlights a series of strengths underpinning the state’s entrepreneurial momentum:
High Entrepreneurship Rate
Texas is home to the 10th-highest entrepreneurship rate in the nation, showcasing the enthusiasm and initiative among its residents to start their own businesses.
Fast-Growing Firms
Ranking 11th for the percentage of fast-growing firms, Texas showcases a healthy startup ecosystem that supports rapid growth and innovation.
Business Clusters
With more than 53% of Texas businesses operating within strong clusters, entrepreneurs benefit from enhanced cooperation and shared resources, which facilitate growth in various industries.
Labor Force and Employment Growth
A vital element in Texas’s business-friendly environment is its expanding labor force:
Working-Age Population Growth
Texas ranks third in the growth of its working-age population nationwide, presenting a continually expanding pool of talent for businesses.
Employment Growth
The state also boasts a third-place ranking in employment growth, providing dynamic and diverse workforce opportunities for new and existing businesses.
Comparative Analysis with Other States
In the WalletHub study, Florida and Utah lead the way in securing the first and second positions, respectively, followed by Oklahoma, Idaho, and Mississippi rounding out the top five.
Conclusion
In conclusion, the combination of a favorable business environment, strong access to essential resources, and a vibrant workforce firmly positions Texas as an attractive destination for entrepreneurs aiming to establish new ventures in 2026. As entrepreneurs continue to innovate and invest in the state, local communities stand poised to benefit from the economic growth driven by these initiatives. Supporting local businesses and engaging with the evolving economic landscape can only add to the robust prospects for Texas’s entrepreneurial future.
Frequently Asked Questions
What is WalletHub’s ranking of Texas for starting a business in 2026?
Texas has been ranked as the third-best state for starting a business in 2026, according to WalletHub’s latest study.
What factors contributed to Texas’s high ranking?
Texas secured the top spot in business environment, ranked 11th in access to resources, and placed 34th in business costs.
How does Texas compare to other states in the WalletHub study?
In the WalletHub study, Florida and Utah secured the first and second positions, respectively, while Oklahoma, Idaho, and Mississippi rounded out the top five.
| State | Ranking | Business Environment | Access to Resources | Business Costs |
|---|---|---|---|---|
| Florida | 1 | 2 | 1 | 2 |
| Utah | 2 | 1 | 2 | 3 |
| Texas | 3 | 1 | 11 | 34 |
| Oklahoma | 4 | 4 | 5 | 6 |
| Idaho | 5 | 3 | 7 | 8 |
| Mississippi | 6 | 5 | 6 | 7 |
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Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
