Three Texas Metros Rank Among America’s Best for Business Expansion

Key Points

• Three Texas metropolitan areas — Austin, Houston and Dallas-Fort Worth — ranked among the seven best places in the United States for small-business expansion, according to a nationwide study by business financing platform Clarify Capital.
• Austin ranked third nationally, recording the highest net job creation rate among the 56 metropolitan areas assessed, at 5.30% in 2023.
• Houston secured sixth place nationally, supported by the second-highest net job creation rate, at 5.11%.
• Dallas-Fort Worth ranked seventh overall, performing strongly in establishment entries, employment growth and net job creation.
• San Antonio placed 11th, narrowly missing the top 10, with comparatively strong results for establishment entries and net job creation.
• The study assessed 56 major US metropolitan areas using five weighted indicators, including employment growth, business establishment activity, net job creation and unemployment.
• Nashville, Tennessee, ranked first, followed by Raleigh, North Carolina, while Portland-Vancouver-Hillsboro, Oregon-Washington, finished last among the 56 metropolitan areas.
• The findings provide a comparative snapshot of business expansion conditions, but individual companies must also assess costs, competition, workforce availability and industry-specific demand before choosing a location.

Edition Online (EO) October 12, 2026 — Three Texas metropolitan areas have ranked among the seven leading locations in the United States for small-business expansion, according to a nationwide study conducted by business financing platform Clarify Capital. Austin placed third nationally, followed by Houston in sixth and Dallas-Fort Worth in seventh, while San Antonio ranked 11th. The research assessed 56 major metropolitan areas using employment trends, business establishment activity, net job creation and unemployment data to compare conditions for companies considering expansion. Nashville, Tennessee, claimed the top position, with Raleigh, North Carolina, in second place.

The findings identify Austin, Houston and Dallas-Fort Worth as three of the highest-ranked metropolitan areas in the country for the measured expansion conditions. However, the individual results show differences in employment growth, new business establishment rates, business exits and unemployment, indicating that the four Texas metropolitan areas do not perform equally across every indicator.

The study, published by Clarify Capital, focused on small-business expansion readiness rather than providing a guarantee of commercial success. Its rankings offer a broad comparison of economic and business activity across metropolitan areas, using indicators that can help businesses evaluate potential locations.

Why Did Texas Metropolitan Areas Rank So Highly for Business Expansion?

Texas accounted for three of the seven highest-ranked metropolitan areas in the Clarify Capital study. Austin led the state’s results in third place nationally, while Houston ranked sixth and Dallas-Fort Worth seventh. San Antonio’s 11th-place finish meant that all four metropolitan areas included in the reported Texas results ranked within the top 11 nationally.

The results were based on five weighted indicators: one-year employment change, establishment entry rates, establishment exit rates, net job creation rates and preliminary unemployment figures for July 2026. The study used establishment data from 2023 for business entries, exits and net job creation, while the unemployment measure reflected more recent conditions.

Employment growth carried the greatest weight in the overall assessment. This means that the final rankings reflected a combination of labour-market performance and business establishment activity rather than any single measure.

The distinction is important for companies evaluating potential expansion sites. A metropolitan area may create jobs rapidly while also experiencing a relatively high rate of business exits. Another location may have strong establishment entry rates but less favourable unemployment figures. The overall ranking combines these different measures into a single comparative result.

The findings do not establish that every business will find Texas more profitable than other locations. Instead, they identify metropolitan areas that performed well under Clarify Capital’s chosen methodology.

How Did Austin Secure Third Place in the National Rankings?

Austin was the highest-ranked Texas metropolitan area, finishing third among the 56 locations assessed. Its strongest reported result was its net job creation rate, which reached 5.30% in 2023, the highest figure recorded among all metropolitan areas included in the study.

The city also ranked second nationally for establishment entry rates, at 14.04%. Orlando, Florida, recorded the highest establishment entry rate, at 14.14%, placing Austin just behind the Florida metropolitan area on this measure.

These results indicate that Austin performed particularly well in the study’s measures of employment creation and new business establishment activity. Both indicators can be relevant to companies considering whether a location offers an active environment for commercial development.

Austin also ranked fourth nationally for employment growth, further strengthening its overall position. However, its results were less favourable in other categories. The metropolitan area ranked 40th for establishment exit rates and 19th for unemployment.

The establishment exit ranking shows that Austin’s performance was not uniformly strong across all the indicators. The study’s overall result therefore reflects the balance between its high job creation and establishment entry figures and its weaker relative position on business exits.

For businesses considering Austin, the findings suggest that the metropolitan area performed strongly in several of the study’s principal growth measures. Nevertheless, the ranking alone does not establish whether the cost of operating there, the availability of suitable premises or the competitive conditions within a particular sector would support an individual company’s plans.

What Made Houston the Sixth-Best Metropolitan Area for Expansion?

Houston ranked sixth nationally, making it the second-highest Texas metropolitan area in the study. Its most notable result was a net job creation rate of 5.11% in 2023, the second-highest among all 56 metropolitan areas assessed.

The result placed Houston behind Austin on net job creation while keeping it among the leading locations nationally. Job creation is one of the indicators used to compare expansion conditions because it captures changes in employment associated with business activity.

Houston ranked sixth nationally for employment growth, another strong result within the study’s framework. These two measures contributed to its overall position among the six highest-ranked metropolitan areas.

However, Houston’s results also included weaker performances. It ranked 38th for establishment exit rates and 50th for unemployment. The latter was one of the metropolitan area’s least favourable relative positions in the assessment.

The combination of strong employment growth and net job creation with a low unemployment ranking illustrates why the study considered multiple indicators rather than relying exclusively on headline job figures.

For employers, unemployment conditions can affect recruitment strategies and workforce planning, although the ranking does not independently explain the reasons behind Houston’s position. Companies would need to examine occupation-specific labour availability, wage expectations and local hiring competition to determine how these conditions might affect their operations.

Houston’s sixth-place finish therefore reflects strong results in employment-related measures alongside less favourable performance in other areas of the assessment.

Why Did Dallas-Fort Worth Finish Seventh Nationally?

Dallas-Fort Worth ranked seventh in the United States, giving the metropolitan area the third-highest position among the Texas locations covered by the study.

Its establishment entry rate ranked ninth nationally, indicating comparatively strong performance in the measure of new business establishment activity. Dallas-Fort Worth also placed 10th for employment growth and 14th for net job creation.

These results placed the metropolitan area among the stronger performers in three of the study’s key indicators. They also helped secure its position within the national top seven.

However, Dallas-Fort Worth ranked 35th for unemployment and 37th for establishment exit rates. As with Austin and Houston, its overall position should not be interpreted as evidence that every aspect of its business environment outperformed those of other metropolitan areas.

The results instead demonstrate that Dallas-Fort Worth combined relatively high rankings for business establishment entries, employment growth and net job creation with weaker relative positions in unemployment and establishment exits.

For businesses evaluating the wider Dallas-Fort Worth market, the findings offer a starting point for comparing regional expansion conditions. Additional analysis would be necessary to determine which cities, suburbs or commercial districts best suit a particular company’s customers, workforce requirements and operating model.

How Close Did San Antonio Come to the National Top 10?

San Antonio ranked 11th nationally, placing it just outside the top 10 metropolitan areas in the Clarify Capital assessment. Although it did not match the overall positions achieved by Austin, Houston or Dallas-Fort Worth, its results included several competitive rankings.

The metropolitan area placed 17th for employment growth, 18th for establishment entries and 20th for net job creation. These positions placed San Antonio within the top 20 for all three measures.

San Antonio also recorded the strongest establishment exit ranking among the four Texas metropolitan areas discussed in the study, placing 27th nationally. Its unemployment ranking, however, was 37th.

The results suggest that San Antonio had a comparatively balanced performance across several growth-related measures, although its overall ranking remained below those of the other three Texas metropolitan areas.

Its 11th-place finish also demonstrates that the difference between the leading Texas locations and San Antonio cannot be explained by one indicator alone. The combined methodology determines the final ranking, and a location’s relative position may change depending on the weight assigned to each measure.

For businesses assessing San Antonio, the study offers evidence of its competitive position within the national comparison. It does not, however, establish that the city is unsuitable for expansion simply because it missed the top 10. Sector-specific opportunities and operating requirements may lead individual companies to different conclusions.

Which Metropolitan Areas Ranked Above and Below Texas in the Study?

Nashville, Tennessee, ranked first nationally for small-business expansion conditions, followed by Raleigh, North Carolina, in second place. Austin occupied third place, while Salt Lake City, Utah, ranked fourth and Charlotte, spanning North Carolina and South Carolina, finished fifth.

Houston placed sixth, followed by Dallas-Fort Worth in seventh. Cincinnati, Ohio, ranked eighth, Fresno, California, finished ninth, and San Jose, California, completed the national top 10 in 10th place.

San Antonio’s 11th-place position placed it immediately outside that group.

At the other end of the rankings, Portland-Vancouver-Hillsboro, spanning Oregon and Washington, finished 56th out of 56 metropolitan areas. Virginia Beach-Chesapeake-Norfolk, covering parts of Virginia and North Carolina, ranked 55th, while Rochester, New York, came 54th.

Sacramento, California, ranked 53rd, followed by Memphis, spanning Tennessee, Mississippi and Arkansas, in 52nd place. The Washington metropolitan area, covering the District of Columbia and parts of Virginia, Maryland and West Virginia, ranked 51st. Baltimore placed 50th, Tucson, Arizona, ranked 49th, San Francisco-Oakland, California, finished 48th, and Urban Honolulu, Hawaii, ranked 47th.

These positions represent the study’s comparative assessment of the 56 metropolitan areas. They should not be treated as a comprehensive verdict on the economic prospects of every business or industry within each location.

A low overall ranking does not necessarily mean that a metropolitan area lacks opportunities in a particular sector. Similarly, a high ranking does not guarantee that a company can establish a profitable operation there. The results depend on the selected indicators, the periods covered by the data and the weights assigned to each measure.

What Do the Study’s Five Indicators Measure?

Clarify Capital assessed five indicators to compare small-business expansion conditions across major US metropolitan areas.

How Does Employment Growth Affect the Ranking?

One-year employment change measured recent movement in employment. Employment growth received the greatest weight in the overall calculation, making it the most influential indicator in the ranking methodology.

This measure can help businesses compare changes in local employment, although it does not independently reveal the quality of jobs created, the availability of workers with particular skills or the cost of recruiting staff.

Why Were Business Establishment Entries and Exits Included?

The study used 2023 establishment entry and exit rates to assess business establishment activity. Entry rates provided a measure of new establishments entering the market, while exit rates captured establishments leaving it.

These indicators offer different perspectives on business activity. A high entry rate may indicate substantial new establishment activity, but it does not establish how long those businesses survive or whether they are profitable. An exit rate, meanwhile, does not by itself explain why establishments close or whether closures reflect wider economic pressures, business restructuring or other circumstances.

What Did Net Job Creation Measure?

The study included 2023 net job creation rates to compare the employment outcomes recorded across metropolitan areas. Austin’s rate of 5.30% was the highest in the study, while Houston’s 5.11% was the second-highest.

These results contributed to the two metropolitan areas’ strong overall positions. However, the study’s figures should be considered within its specific timeframe and methodology rather than treated as a forecast of future job creation.

How Did Unemployment Figures Influence the Results?

Clarify Capital used preliminary unemployment figures for July 2026 as part of its assessment. This provided a more recent labour-market indicator alongside the 2023 business establishment and job creation data.

The difference in reporting periods matters when interpreting the findings. The final rankings combine measures from different periods, so they are not based on a single, simultaneous snapshot of every aspect of metropolitan economic activity.

The study’s methodology offers a structured way to compare locations, but businesses should review the underlying data and current local conditions before using the results to make investment or relocation decisions.

What Should Businesses Consider Before Expanding into a High-Ranked Metro?

The rankings can help companies identify metropolitan areas for further investigation, but selecting an expansion location requires a more detailed assessment than a national league table can provide.

Businesses should compare commercial property costs, wage levels, transport links, access to suppliers, customer demand and the availability of appropriately skilled workers. They should also consider local competition, industry concentration, taxation and the regulatory requirements associated with their proposed activities.

For smaller companies, access to finance and the cost of establishing a new operation may be particularly important. A metropolitan area with strong employment and establishment entry figures may still present challenges for a business operating with limited capital or a narrow profit margin.

The geographical scale of the results is another consideration. Metropolitan rankings cover broad economic areas that can include multiple cities, suburbs and employment centres. Conditions within one part of a metropolitan area may differ substantially from those in another.