Entrepreneurs and startups are seeking out Texas due to a business friendly environment. Tech giants Tesla, AT&T, and Amazon have relocated to the state. Startups are choosing Texas because of the state’s variety of economic and social benefits.
Texas has gradually become a hub for entrepreneurs and startups, with recent years showcasing a large amount of business innovation in the state. Today, we’re witnessing so many businesses relocate to Texas: They come from California, New York and all over the country. Multi-nationals love setting up in our state too.
In a piece titled, ‘Why Texas?,’ the Texas Department of Economic Development states that, “the Lone Star State has led the nation in population growth over the last 15 years and continues to be a top state for job creation.” This outlines both that Texas is continuing to see mass population growth because of relocation, but also that the state’s market and economy are expanding because of skilled workers and industry leaders.
But, why is Texas so appealing to startups and why are so many entrepreneurs relocating to the state?
7 Reasons why Startups Choose Texas:
1. Low Operating Costs
Texas is known for having some of the lowest, if not the lowest, operating costs for businesses in the US. According to the ‘2021 Business Cost Index,’ Texas is the cheapest state to operate a business in. This is due to a variety of compelling factors. Firstly, Texas real estate is considered incredibly affordable. The state has a tremendous amount of large and vacant plots, and the regulations and prices for building are low and amenable. Moreover, because Texas is a more affordable state to live in, the cost of labor, wages, and salaries for skilled workers is lower. This allows businesses of all sizes to keep their operating costs down, and maximize profits.
2. Low Taxation
In addition to low operating costs, Texas is also known for relatively low taxation laws. Individuals in Texas are not subject to income tax, and businesses are not subject to corporate income tax. However, companies are levied with a gross receipts tax. The lack of income and corporate income tax is a very compelling advantage for Texas businesses, and there are only eight other states that offer this.
3. Funding Opportunities
The Texas government actively works to incentivize businesses choosing to operate within the state. Moreover, the state provides funding opportunities for startups and new businesses to continue to grow the economy and state market. The Texas Enterprise Fund rewards businesses, both new and established, for contributing to the state’s economy. The fund seeks out businesses that are choosing between Texas based sites, and other out-of-state sites. Texas is known as an entrepreneurial hub because of its eagerness to provide funding for startups. Some funding opportunities include accelerators, incubators, and accessible venture capital.
4. Large Market Size
The state boasts a large, and also diverse, market. It is ever growing and expanding, and houses enormous industrial capabilities. This growth and expansion is conducive for a thriving environment for startups, who can capitalize on an already booming market. The state’s market size has also encouraged and fostered increased investment, both nationally and internationally. This investment will ultimately benefit all participants within the Texas economy.
5. Business Environment
The scale of the Texas market has allowed for business communities to form. These communities frequently assist one another in building a cooperative economic experience. As a result, startups and entrepreneurs are likely to find support and assistance from existing businesses. Moreover, the friendly nature of the state’s business community allows for newcomers to feel welcome and invited. This allows transitions to the state to be more seamless and hospitable. From governmentally provided support, to the support garnered from the private sector; new businesses will have no shortage of assistance and aid.
6. Rising Tech Community
In recent years, Texas has become the recipient of considerable attention from the international tech industry. California has long been seen as the tech hub of both the US and the world, however, that has begun to shift. Many tech companies have become dissatisfied with the economic climate of California, which houses large labor costs and high taxation. Texas is now the home to some of the largest tech companies in the world. This includes: Tesla, Oracle, and Amazon. Many of the tech companies that have made the move from California to Texas now reside in Austin. This has made the state a very appropriate place for new tech startups to set up their business operations.
7. Growing Urban Areas
The larger cities in Texas are experiencing tremendous growth in size and in economy. These cities include Dallas, Houston, Austin, and San Antonio. The growth of these cities is increasing the amount of active businesses, as well as the size of their markets. With more and more people moving to major Texas cities, the demand for service and product providers is compounding. This allows for a competitive market to thrive. Not only does the scale of Texan urban areas contribute to the state’s overall financial attractiveness, it also means that these cities are full with skilled workers who are ready to jump at the opportunity for joining innovative startups.
Bonus Reasons:
Apart from its economic and business environment, Texas has a host of benefits to offer those looking to relocate to and set up shop in the state. The climate is very appealing to people that want to escape harsh winters. Texan summers are beautiful, and even the winters are agreeable. The environment is attractive as entrepreneurs can escape the hustle and bustle of the city to explore the more rural parts of the state. Living costs are low, which means entrepreneurs can experience a high quality of life for less.
Now is truly the best time for emerging entrepreneurs to consider forming a Texas LLC, and beginning their business venture in the lone star state.
Final Thoughts
Texas is now an entrepreneurial hub due to its investment in a stable, competitive, and appealing business environment, and its support for burgeoning businesses. Startups and entrepreneurs can experience low operating costs, low taxation, and an improved quality of life through low costs for living. This is in addition to the high levels of business camaraderie, and the wealth of funding opportunities that the state provides. Texas is a compelling state to live in, regardless of its potential for business growth. The climate and social landscape allows for anyone to enjoy the state. This is important for entrepreneurs, as ultimately, they will be both working and living in the state.
The post 7 Reasons Texas is Popular with Startups appeared first on DIGITECH Web Design.
