The city stands out for its high net business openings and strong startup employment.
A recent analysis by USA TODAY Blueprint ranked Dallas the fourth best city in the U.S. to start a business, based on several key metrics including business success rates, gross domestic product (GDP) growth and startup employment.
In 2023, a record 5.5 million new business applications were filed in the United States, but 18% failed within the first year. With such high risks involved, choosing the right location can have a huge impact on a new business’s chances of success.
Dallas stands out for its remarkably high success rate for new businesses. According to the study, Dallas ranks third in net new business openings and ninth in business entrant rate. Specifically, Dallas opened 4,388 more businesses than closed in the past year. Dallas also boasts the fifth-highest rate of new business employment, with 4.4% of jobs related to new businesses.
Additionally, Dallas is known for its entrepreneurial spirit, with 12.5% of households reporting self-employment income. Dallas also excels in economic growth, with a 13.5% increase in GDP from 2021 to 2022, ranking 6th in this area.
The study analyzed data from 46 major U.S. cities, evaluating factors such as business openings, closures, startup jobs and GDP growth to determine the best cities for starting a business. Austin, Texas, came out on top, followed closely by Miami, Florida and Nashville, Tennessee. Dallas performed strongly in several areas, highlighting the city’s advantage in incubating new businesses.
For more details about the survey, including methodology and additional statistics, see USA TODAY Blueprint.
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