“Starting a business can be very scary, considering one in every five startups doesn’t make it past the first year,” said WalletHub analyst Chip Lupo in the study. “That’s why it’s especially important to live in a city that provides an environment where new businesses can thrive, with enough capital, workers and customers to keep it going long-term.”
The study analyzed 100 cities across 19 metrics, including labor costs, investors' prevalence and job growth. After totaling it all, Dallas scored a spot in the top 20. Other Texas cities that were highly ranked were Austin, which came in third, and Fort Worth, which came in at No. 11. In fact, North Texas is represented well on the list with Arlington (No. 15), Irving (No. 22), Garland (No. 29) and Plano (No. 43) making the top 50.
Source: WalletHub
Conveniently located in a central point of the country, and with a good number of residents who have a few spare million to invest, it’s no surprise that the city ranks high. The city ranks No. 29 for financial stability, No. 24 for the growing number of small businesses and No. 41 for labor costs. But we really take the cake when it comes to the average work week rating, coming in at No. 2 nationwide. Dallasites love to work. It appears the land-locked residents aren’t ones to keep their laptops closed on weekends.
Dallas, home to 21 Fortune 500 companies, is highly competitive, but experts say that the high competition associated with big cities should be considered an advantage rather than a deterrent.
“There are a lot more advantages than disadvantages,” said Dr. Brent B Clark, a professor at the University of Nebraska at Omaha, in the study. “In population centers, you have a larger potential customer base, access to talent, better infrastructure, and access to funding. On the other hand, you are likely to experience higher expenses for utilities, office space, and living expenses. More customers, talent, and investors make starting in a city an easy choice for most startups.”
A growing trend is relocating large corporations to suburban cities in North Texas. Keurig Dr Pepper, Yum! Brands—owner of Pizza Hut and KFC—and Caterpillar, the tractor company, have all settled in North Texas suburbs in the last few years. However, the city of Dallas is still inviting new and old businesses to pave their way.
The city’s business-friendly reputation has been a boast for Mayor Eric Johnson, who released a statement on Dallas’ “winning streak” after the city was announced as the best spot for corporate relocations in 2025.
“Texas has rightly earned its reputation as the ideal state to do business, and this recognition reinforces Dallas as the best city not just in Texas, but in the entire nation for businesses,” wrote Mayor Johnson.
In its determination to make starting a new business easy in Dallas, the city has streamlined the permitting and planning process with a new program, DallasNow, set to launch May 5. The online portal integrates 15 systems to create a singular platform for contractors, developers, business owners, and residents alike.
“DallasNow is a user-friendly system that will streamline the permitting process and provide much more transparency for our customers,” said Emily Liu, Director of Planning & Development, in a press release. “Through the online portal, customers can view, track and get real-time status updates of their applications at any time.”
