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Texas is known for being extremely business friendly. It’s favorable tax policies, supportive organizations and growing population have helped Texas come through the Recession stronger than ever.

With five major metros and countless corporations headquartered in the state you may think small businesses get overshadowed. The truth is small service based businesses are big business in Texas. Our local Texas moving company is living proof of that. All the same reasons that large companies find Texas desirable also work in the favor of small businesses. But some cities are actually better the smaller you are.

Austin, TX

Austin is well known for having a “go local” mindset when it comes to choosing service providers. This often equates to small businesses getting preference over the larger outsiders. The sentiment is so prominent that a few years ago Nerd Wallet named Austin the best city in the country for small businesses. In fact, we started our moving company in Austin. The support from the community was nothing short of amazing. The easy licensing procedures also help businesses that are just getting started.

Starting a small service based business? Kiplinger recently named Austin the 5th best city for starting a business. They found that the cost of living for self-employed individuals was 5% lower than the national average and the cost of doing business is also cheaper. If that wasn’t enough to convince you, in 2014 Forbes listed Austin as the 3rd best city to start a business and noted that there was huge growth potential in the service industry.

Best for Businesses That Specialize In:

Fitness and Nutrition Related Services

Tech Related Services

Pet Care and Grooming Services

Elder Care

San Antonio, TX

Right behind Austin in Nerd Wallet’s list of top cities for small businesses was San Antonio. Local small business owners say that there’s a good regulatory environment and nice growth potential. There’s also a relatively low cost of living and business operation expenses. On top of that, San Antonio is also one of the top tourist destinations in the country.

Best for Businesses That Specialize In:

Accommodation Services

Food Services

Real Estate and Leasing Services

Construction Services

Graffiti Removal and Cleaning Services

The Woodlands, TX

This suburb just north of Houston is growing by leaps and bounds. The growth potential for small service based businesses is so good we opened our own Woodlands moving company location several years ago and had to expand last year. In 2014 The Woodlands had one of the best income, job and population growth rates in Texas. That means small businesses have a growing customer base with more money to spend.

Best for Businesses That Specialize In:


Food Service

Luxury Auto Repair and Maintenance

Yoga and Pilates Instruction

Mansfield, TX

When a city has a 34% growth rate in three years businesses of all sizes take notice. Part of the growth in Mansfield, TX is due to the expansion of larger businesses and medical facilities. Small businesses are able to piggyback off the growth by catering to the people that work at the big businesses. Mansfield is a suburb of Dallas so it’s located in an area that’s always attracting people from around the world. In a study by Biz2Credit.com Dallas-area small businesses had an average revenue of $374,996 – the highest in Texas. According to Forbes, the Dallas area also has a strong community of small businesses.

Best for Businesses That Specialize In:

Medical Related Services

Construction Services

Business Consulting Services

Accounting and Financial Services

Lubbock, TX

If you’re a young or new entrepreneur Nerd Wallet suggests that you start your small business in Lubbock. The city has seen steady population growth over the last 10 years, and now more than 236,000 people call Lubbock home. Small business owners benefit from a strong local economy and easy access to funds. With only 2.28 businesses per 100 residents there’s also less competition compared to other Texas cities. The Cost of Living Index of 89 doesn’t hurt either (national average is 100).

Best for Businesses That Specialize In:

Home Health Care Services

Banking Services

Religious Related Services

Auto Services

Original Source: https://squarecowmovers.com/best-cities-in-texas-for-small-service-based-business/