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We’ve all seen kids in local neighborhoods set up lemonade stands, trying to bank off of the North Texas heat. This type of entrepreneurial idea seems to be wired in us since we are very young. For many of us who have moved past this stage into the world of adulthood, putting a business plan together can be a daunting task, let alone trying to find the right spot to set up shop. Well Fort Worthians, there’s a silver lining to this scary notion given the findings of a recent study conducted by WalletHub. A new business report highlighting the best large cities to start a new business in, places Fort Worth at the number 7 spot out of 100 cities across the nation to do so.
Coming in at the coveted number one spot is Orlando, Florida, which was given a WalletHub score of 68.22. Fort Worth’s score is 59.50, which is based off of the city’s metrics, like business environment, access to resources, and business costs. At the bottom of the list is Washington D.C., which tallied a score of 33.63 based on the same criteria.
In order to reach these results, WalletHub’s sample considered only the city proper in each case, excluding cities in the surrounding area. Next up, WalletHub evaluated the aforementioned three dimensions using 19 metrics. According to its website, WalletHub graded each metric on a 100-point scale, with a score of 100 representing the most favorable conditions for startups. Each city’s weighted average was determined after averaging all the metrics to calculate its overall score.
Right under Fort Worth at the number 8 spot was Austin, which tallied a 59.37 ranking on the list. Arlington came in at number 12 with a score of 56.86, and Dallas came in at 14 with a score of 56.41. Other Texas cities on the new list included Lubbock at number 16, Irving at 23, Laredo at 31, Houston at 38, Garland at 43, Plano at 48, El Paso at 53, San Antonio at 48.94, and Corpus Christi at 41.06.
Business Environment – Total Points: 50
Length of Average Work Week (in Hours): Full Weight (~6.25 Points)
Average Growth in Number of Small Businesses: Full Weight (~6.25 Points)
Startups per Capita: Full Weight (~6.25 Points)
Average Growth of Business Revenues: Full Weight (~6.25 Points)
Five-Year Business-Survival Rate*: Full Weight (~6.25 Points)
Industry Variety: Full Weight (~6.25 Points)
Entrepreneurship Index*: Full Weight (~6.25 Points)
Job Growth (2022 vs. 2018): Full Weight (~6.25 Points)
Access to Resources – Total Points: 25
Financing Accessibility: Full Weight (~3.57 Points)Note: This metric was calculated as follows: Total Annual Value of Small-Business Loans / Total
Number of Small Businesses.
Venture Investment (amount) per Capita: Full Weight (~3.57 Points)
Prevalence of Investors: Full Weight (~3.57 Points)
Human-Capital Availability: Full Weight (~3.57 Points)Note: This metric was calculated as follows: Number of Job Openings per Number of Civilians in Labor Force minus Unemployment Rate.
Higher-Education Assets: Full Weight (~3.57 Points)Note: This metric is based on WalletHub’s “2024 College & University Rankings” ranking of America’s top 857 universities.
Share of College-Educated Population: Full Weight (~3.57 Points)Note: This metric measures the percentage of the population aged 25 and older holding at least a bachelor’s degree.
Working-Age Population Growth: Full Weight (~3.57 Points)Note: “Working-Age Population” includes individuals aged 16 to 64.
Business Costs – Total Points: 25
Office-Space Affordability: Full Weight (~5.00 Points)Note: This metric measures the per-square-foot rental cost of commercial office space.
Labor Costs: Double Weight (~10.00 Points)Note: This metric measures the median annual income.
Corporate Taxes*: Full Weight (~5.00 Points)
Cost of Living: Full Weight (~5.00 Points)
