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Texas named a top state for start-ups

Access to resources and lower business costs are factors that rank Texas as one of the best states to start a business, according to a study conducted by WalletHub.

The study found Texas is one of the top states with the highest average growth in the number of small businesses, offering a strong jumping-off point for start-ups and entrepreneurs ready to invest in the Lone Star State.

Julie Snyder, CEO for the Kyle Area Chamber of Commerce, said she credits a lot of Texas’ business success to an affordable cost of living, low labor costs and underdeveloped areas as factors for getting a new business in place. 

How does Texas stack up?
(1=Best; 25=Avg.):
4th – Avg. Growth in Number of Small Businesses
12th – Office-Space Affordability
29th – Labor Costs
27th – Availability of Human Capital
4th – Avg. Length of Work Week (in Hours)
11th – Cost of Living
13th – Industry Variety
To view the full report, visit

Snyder, who lived in California for more than a decade, said Texas does not have a state income tax, which in other states, like California, can hinder the ability to start a small business.

“Overall, Texas is a more affordable state to come and set up a business,” Snyder said. “Our state legislature also likes to operate with a pro-business attitude, so there are less regulations here. And with all the growth in central Texas, this is a prime time to come and invest.”

For Kyle business owner Ammie Wright, the rigors of staring up a business were eased by limited city and state regulations. However, Wright said all entrepreneurs should conduct their own research before making the jump into starting a business.

That includes researching any laws or ordinances that businesses must follow.

“When you are ready to open your business, be sure you are communicating with the city government for what you can and cannot do based on their ordinances,” Wright said. “I wasn’t aware of the restrictions businesses have with their signs, so I had to work around that. To make it easier on yourself, just be educated on your city’s laws.”

 Wright said he chose to open a business that provides a service he believed the community needed.  

“I moved to Kyle to start my business because of the growth and I really wanted to plug my products in a community that is being developed,” Wright said. “I’ve been here for a year and a half now, and the main goal was to integrate myself with the people of Kyle.”

However, Wright said trying to stand out is a key component.

“Texas is great if you’re small and just starting out but it’s also a competitive area, so the goal is to try and stick out,” Wright said.

Texas’ commercial attractiveness is also catching the eye of larger entities, which have helped boost new job growth in not only locally, but also throughout Hays County. Factors contributing to new job growth is a low cost of living, lower tax rates, as well as the opportunity for commercial entities to obtain business incentives.

In April, the city of Kyle broke ground on the Hays Logistics Center, a new 108-acre mixed-use commerce center. Late last month, Los Angeles-based Majestic Realty Company announced it was planning to invest $40 million into a 12-acre business park in the city.

Those developments would not have been possible without the triple-freeport tax exemption offered by the city, county and school district.

The exemptions allow companies to forgo paying an inventory tax on qualified freeport goods that leave Texas within a 175-day period.

The diverse pool of incentives offered for businesses allows large-scale operations and small mom and pops to operate in the same space.

“Kyle has a lot of advantages that other places in the country don’t have,” Snyder said. “This area has a lot of potential for growth and with new families coming in, there is an abundance of space and resources to set up great businesses in the city.”

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