With its high-ranking economy, workforce, access to capital and innovation hubs, Texas is one of the best states for business regardless of industry.
At this point, it’s really no secret — Texas is a premier location to start, expand or scale up your business. The state has no personal or corporate state income tax and offers highly competitive job creation incentives, corporate tax credits, rebates and reductions in key industries. With such a favorable business climate for businesses and entrepreneurs alike, the state has attracted over 50 Fortune 500 companies.
Texas’ higher education institutions produce world-changing talent, ensuring a skilled workforce capable of driving innovation and growth. And with a rapidly growing population and the second largest workforce in America, Texas provides a vast consumer base and a diverse talent pool, making it a promising destination for business ventures.
The state’s economy ranking is favorably noted in several major publications as well. CNBC once again ranked Texas as a Top 10 State for Business in 2023, supported by its low cost of doing business, innovation and workforce. Chief Executive Magazine has also ranked Texas as its Top State for Business 19 years in a row.
Here are four outstanding aspects of Texas that give the state its top-ranked economy.
Workforce
Look no further than Texas’ prestigious higher education institutions to see why the state employs such a highly skilled and educated workforce. The state is neck-and-neck with California for the most Tier 1 universities in the nation. With an emphasis on education, Texas fosters talented individuals ready to contribute to the state’s diverse industries and businesses.
In the Central Texas region in particular, Temple ISD partners with local colleges and businesses to offer comprehensive career and technical education programs, putting students on the fast track to employability.
Economy
Several factors contribute to Texas’ thriving economy, which — if the state were ranked among countries — would be the ninth largest in the world. First, Texas has the fourth-highest rate of new entrepreneurs, with emerging ventures and innovative communities cropping up throughout the state. Second, it offers abundant access to natural resources, playing a pivotal role in America’s energy production — from 40% of the nation’s crude oil output to being a leader in U.S. production of wind and solar energy.
Texas is also one of the best states for business because of its investment in education, with the Texas Workforce Commission having made up to $5 million available to companies for employee training through its Upskill Texas initiative.
Access to Capital
Beyond having one of the lowest tax burdens in the nation and its numerous incentive programs, Texas is an inviting ecosystem for small businesses and startups. A collaborative effort between the Governor’s Office of Small Business Assistance and its partners offers robust access to capital for business and startups in Texas. Funding sources come from a range of sources, including the U.S. Small Business Administration, federal grants, non-profit lenders and state resources such as the Texas Workforce Commission and the Product Development and Small Business Incubator Fund (PDSBI).
In the Central Texas region, the Central Texas Business Resource Center plays a crucial role in supporting small businesses by providing no-charge workshops focused on funding opportunities, creating a comprehensive small business plan and more.
Technology & Innovation
Some of the world’s greatest minds study at renowned institutions in Texas such as the University of Texas. Just an hour’s drive from Temple, TX is the university’s flagship Austin campus, which is where Michael Dell (the creator of Dell Technologies) attended undergraduate school.
Austin has been a tech hub for decades, even being hailed as the next Silicon Valley. Approximately 52,700 IT professionals worked in the city in 2023, employed by companies like Apple, Amazon, Tesla, Expedia Group and RetailMeNot, Inc. Tech businesses are also seeing the talent available in surrounding cities like Temple, TX.
The ripple effect of this industry’s growth extends beyond Austin’s city limits, bringing the tech boom to other communities in Central Texas, like Temple. In 2022, Meta announced plans to establish an $800 million hyperscale data center in Temple — a 900,000 square-foot facility that will support approximately 100 jobs upon completion. The following year, Samsung announced it would establish a $17 billion semiconductor manufacturing facility in neighboring Taylor, TX — a move that is expected to create more than 2,000 high-tech jobs in the region.
With so many reasons why Texas is one of the best states for business, it’s no wonder more than 100 companies have relocated to the state since 2020. Ready to become a part of a thriving economy with a skilled and innovative workforce? Contact us to learn what makes Central Texas the right place for your business.