The Rising Popularity of North Texas

As many of my readers will know, the North Texas region has experienced significant population growth in recent years, with people flocking to our vibrant area for its business-friendly environment, thriving economy, and funding opportunities. This has made it an ideal destination for small businesses looking to flourish and expand. What’s more, many companies are increasingly choosing to relocate their operations to our area, further fueling our economic and population growth. This blog explores the rising popularity of North Texas as a hotspot for small businesses and highlights the numerous advantages that are attracting people and businesses from far and wide.

Why North Texas is becoming a hot spot for small businesses?

A variety of factors make the North Texas region highly conducive to entrepreneurial success. One of the primary reasons is our business-friendly environment. The region is known for its pro-business policies, including low taxes, business support and resources which facilitates the ability of small businesses to launch, operate and grow.

In Texas, the state and local tax burden comes in at 8.6%. Comparatively, New Yorkers are taxed at nearly double the rate of Texans and face the heaviest burden in the country at 15.9%.1 The absence of a state income tax and inheritance tax in Texas is a major draw for small businesses. Texas lawmakers even made the provision of No personal income tax in the state’s constitution. This tax advantage means that employees face less tax burdens.

Businesses in Texas are required to pay a franchise tax if yearly earnings exceed $2.47 million for 2024 and no tax is paid if earnings are below the threshold.2 While other states' income tax rates range from 2.5% in North Carolina to 11.5% in New Jersey.3 The base franchise tax rate in Texas is .75%.4 As a result, Texas business owners can retain a larger portion of their profits, ultimately providing them with more resources to reinvest in their success.

Support and resources for small businesses in North Texas

North Texas is home to a robust ecosystem of support for startups and entrepreneurs, with numerous resources available to help them succeed. The region boasts an abundance of networking events and mentorship programs that assist new businesses in their journey toward growth and sustainability. 

Local Chambers of Commerce promote business growth at the state and local level, offer networking opportunities, and resources. Furthermore, North Texas hosts a multitude of networking groups and industry associations that facilitate connections among small businesses, potential customers, and investors. These groups offer valuable opportunities to learn from experienced professionals, collaborate with peers, and gain visibility within the local business community.

One such resource is the North Texas Small Business Development Center (NTSBDC). As part of the Small Business Administration network, the NTSBDC provides free consulting services and training programs to help small businesses with various aspects of their operations, including business planning, marketing strategy, and financial management. They also offer assistance with accessing financing options and navigating government regulations.

Another notable organization is the North Texas Entrepreneur Education and Training Center (NTEETC). This center offers workshops, seminars, and networking events specifically designed to equip entrepreneurs with the knowledge and skills needed to start and grow their businesses. Additionally, they provide mentorship opportunities through their network of successful business leaders.

The region is also home to several business incubators and accelerators. These types of programs provide startups with access to short term or long term education, coaching, resources like office space, and networking opportunities among industry experts. All these efforts combine to help business owners accelerate their growth and achieve their business goals. Some well-known incubators in North Texas include TechFW, VentureSpur, and the Addison TreeHouse.

Thriving Economy

US News ranks the Texas economy as the #8 in the country.5 With the area’s desirable blend of economic incentives, supportive community, and higher disposable income, North Texas makes an attractive destination for small businesses seeking to establish themselves in a vibrant and dynamic environment.



Not just small businesses, over the last few years, multiple large companies have moved their headquarters to North Texas. With the announcement of Caterpillar Inc. moving their headquarters to North Texas, Texas Gov. Greg Abbott praised the move, saying Texas "widened its lead as the No. 1 state in America for Fortune 500 company headquarters." They join an impressive list of companies that call North Texas home, like Toyota, Pizza Hut, Keurig, Dr. Pepper, Frito Lay, JCPenney, and PGA of America. 

Key industries thriving in the area

In addition to the overall favorable business climate, there are several key industries that have seen significant growth and success in North Texas. These industries have further contributed to the region's rising popularity among small businesses and entrepreneurs.

One of these thriving sectors is technology. North Texas has become a hub for tech companies. The strong presence of tech giants, such as IBM and Texas Instruments, has attracted talent and investment to the area. 

In addition to the region's skilled workforce, access to top-notch educational institutions have further fueled the growth of the technology industry. Collaborative partnerships like the University of North Texas and the City of Frisco provide world class education close to where people work and live.  “This enhances our ability to attract everything from Fortune 500 to startup businesses,” said Ron Patterson, president, Frisco Economic Development Corporation.  “Many of our corporate prospects ask about research for business development and continuing education opportunities for their employees. This partnership creates more collaborative opportunities leading to new innovations and businesses, as well as business expansions and relocations which help bring high paying jobs to our community.”6 This kind of forward thinking is what makes North Texas so appealing.

North Texas is a hotspot for logistics and distribution companies. Its strategic location at the crossroads of major interstate highways and proximity to international airports and ports makes it an ideal hub for transportation and logistics operations. As a matter of fact, Texas is ranked #13 in the nation for infrastructure. 1 The presence of large logistics companies, as well as the region's infrastructure investment and economic development initiatives, have helped small businesses in this industry thrive.

Another industry that is flourishing in North Texas is healthcare. The region is home to several renowned hospitals, pharmaceutical companies, and research institutions. In the first 2 days of 2024, Psychemedics Corp, a drug screening company, announced they will be moving their Headquarters to Dallas from Massachusetts.7 With an ever-aging population and an increasing focus on healthcare innovation and technology, small businesses in the healthcare sector have found ample opportunities for growth and success.

On the other end of the age spectrum, our region is bustling with young and growing families. According to the US Census Bureau, 24.5% of Collin County's population is under the age of 18. Entrepreneurs that cater to the needs of the family have an abundance of fertile soil to grow their businesses in.

These key industries, among others, have played a vital role in the rising popularity of North Texas as a hotspot for small businesses. The opportunities and resources available in these sectors, combined with the overall business-friendly environment, have attracted entrepreneurs seeking to tap into these lucrative markets.

Funding Resources

Great business ideas and innovations need capital to bring products to market and grow. In this next section, there are multiple funding avenues listed to bring those ideas to fruition. 

Banks: Traditional banks offer SBA 7, 504 loans, lines of credit, credit cards, term loans, and equipment financing. Credit unions allow you to build a relationship with a local bank. Small businesses may find the loan qualifications process less stringent at a credit union.

Online lenders tend to be nationwide. They can offer different types of loans like invoice factoring, invoice financing, merchant cash advances as well as the same loans as traditional banks and credit unions. 

Peer-to-peer lenders are an option for businesses with low credit scores. Investors and individuals provide the money in this situation. 

Community development financial institutions are nonprofits that provide loans in rural or economically disadvantaged areas, as well as female and minority business owners. More information about loans can be found at the Governor’s Office of Small Business Assistance. 

Texas Governor Greg Abbot announced in October 2023 the beginning of the Texas Small Business Credit Initiative. The program is designed to provide more access to funding through the Capital Access Program and Loan Guarantee program. Since small businesses employ almost half of all Texans, this program gives businesses the cash needed to hire workers and grow. 

Another interesting funding opportunity to consider is government and private grants. If a business needs capital to grow, these grants can meet those needs and the money doesn't have to be paid back. The Forbes Advisor lists 5 grants available for small businesses in Texas. 8