Texas Ranked Top State For Women Entrepreneurs

AUSTIN, TEXAS — It's a man's world? Try telling that to women entrepreneurs in Texas, ranked No. 1 among states that are best for such business leaders.

Texas jumped from its previous 8th-place ranking to the top slot in a recent study by FitSmallBusiness.com assessing the best places for women entrepreneurs. In touting the state's record of female entrepreneurship, the study's authors noted how the distinction belied the state's image.

"Texas used to conjure images of cowboys in the Wild West, but it’s becoming a startup hot spot with new business increasingly saddling up in the Lone Star State," researchers wrote. "Texas is hands-down one of the nation’s top states due to its business-friendly legal and economic climate."

Analysts credited the lack of corporate or income taxes as factors elevating Texas to the hot spot, along with a high rate of startup growth: "Startups are flocking to Texas high startup success rate," researchers wrote. "Plus, with a below average cost of living, you can quickly increase your living standards and improve your lifestyle for less."

State performance was ranked among four main metric categories: Business/Climate Opportunity; Opportunity for Women in Business; Economical and Financial; and Health and Safety/Quality of Life. The metrics comprised both general business environment and gender-specific factors that influence business success and livability for women. The data then was weighted based on the importance of each category, researchers explained.

Each category was weighted equally in the mix with 25 percent of the aggregate score. Here's how researchers explained the methodology:

• General Business Climate/Opportunity

Without considering the gender of business owners, we looked at general criteria such as the rate of startup growth, share of scale-ups (companies that have grown 20% or more over the past three years), and the density of high-growth companies to find the overall business climate for each state. This information reveals the likelihood of startup success and failure in each state.

• Opportunity for Women in Business

Following the analysis of the general business climate, we looked at the female-centric opportunities and support systems available to female entrepreneurs on a state-by-state basis. These factors included the percent of minority-owned businesses; the number of Small Business Administration Women’s Business Centers, which are key in female entrepreneurship funding; and the availability of public/private support networks such as business associations, clubs, and groups geared towards female business owners.

• Economic & Financial Health

Naturally, economic factors and state financial health play large roles in the likelihood of startup success. These include the average cost of living (startups are generally tight on funds and so the ability to live affordability during the startup process is important), as well as business tax rates. These two factors influence the amount of possible revenue a business will have at the end of each fiscal year.

• Livability for Females

Even with a positive business climate, low tax rates and cost of living, and opportunities for women in business, general livability matters greatly to female entrepreneurs. We factored in each state’s overall social support for women, as well as women’s health and safety, to determine which states offer positive environments wherein women can thrive.

Rounding out the top ten were, in descending order: Ohio; Minnesota; Washington; Alabama; North Carolina; Massachusetts; North Dakota; Wisconsin; and Georgia.

Yet regardless of state ranking, the study's authors lauded the gains women continue to make in the realm of entrepreneurship: "Women are shaping the nation’s business climate with an ever-increasing number of innovative businesses. While there are a number of factors that influence a startup’s success—many of which are difficult to control—choosing the right state for a dream business is something you can choose. Be sure you review our top 10 above carefully, then make your leap into entrepreneurial success in 2019."

To read the full study, click here.

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