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Texas takes top spot in new study of best states for female entrepreneurs

Texas takes top spot in study of best states for female entrepreneurs

Women working in an office
Texas jumped from No. 8 to No. 1 in this nationwide study. Photo courtesy of Pexels

Texas is known for being a land of opportunity, and a recent study evaluated how those business opportunities translate to benefitting female entrepreneurs. Turns out, starting a business as a woman in the Lone Star State is a pretty good idea.

Fit Small Business ranked all 50 states based on the business opportunities for women. In the January 8 report, Texas came in No. 1 — up from the No. 8 spot last year. Ohio, Minnesota, Washington, and Alabama rounded out the top five, respectively.

Each state was evaluated by four equally weighted factors: general business climate and opportunity, the number of female-owned businesses, economic and financial health, and safety and well-being for women.

Texas ranked strongest in economic and financial health, for which it ranked No. 3 overall, followed by the number of female-owned businesses, for which it ranked No. 5. Texas' general business climate was ranked No. 8 in the study. Where the state stands to improve is in its safety and well-being for women. Texas ranked No. 41 in this category, which factored in cost of living, social support for women, and whether or not the state had a positive environment for women.

"Texas is hands-down one of the nation's top states due to its business-friendly legal and economic climate," the report says. "Put aside having no corporate or income taxes and a high rate of startup growth; startups are flocking to [the state's] high startup success rate."

American Express' 2018 State of Women-Owned Businesses Report found that women-owned businesses are growing at an impressive rate. The study found that over the past 11 years, the amount of women-owned businesses grew 58 percent — compared to the 12 percent that all businesses reportedly increased.

In this study, Texas tied with Utah for second place among the states "where women-owned businesses most increased their economic clout between 2007 and 2018." When the data was broken down into metropolitan areas, Texas had three cities in the top 10: San Antonio at No. 2, Austin at No. 3, and Dallas No. 9.

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This article originally appeared on our sister site, InnovationMap.com.

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