Texas City Leads U.S. in Small Business Growth
Austin, Texas, has earned the distinction of being the fastest-growing city for small business in the United States for 2026, according to a recent study by USA Business Insurance. This recognition highlights Austin’s vibrant status not only as a hub for music and culinary experiences but also as an emerging center for technology and startups.
Key Findings of the Study
The study analyzed data from the U.S. Census Bureau, focusing on various metrics such as new business applications, employment growth in small businesses, commercial permits, and trends in population and workforce migration. The cities ranked in the top five for small business growth are:
- Austin, Texas
- Miami, Florida
- Phoenix, Arizona
- Nashville, Tennessee
- Tampa, Florida
Completing the top ten list are Raleigh (North Carolina), Boise (Idaho), Charlotte (North Carolina), Salt Lake City (Utah), and Atlanta (Georgia).
Austin’s Business Landscape
This recognition is not Austin’s first entry into “best cities” lists for small business and employment. In a 2024 survey by the Commercial Real Estate Development Association, Austin ranked fifth nationally. The city is often referred to as “Silicon Hills” due to its flourishing tech industry.
In a separate study from WalletHub in 2025, Austin was rated the third-best location to start a new business. The factors contributing to this strong ranking include the robust existing business community and extensive resources available to entrepreneurs.
Consumer Support for Small Businesses
Austin’s appeal for small businesses may also stem from its supportive local consumers. A 2025 analysis by business lender Nav indicated that Austin residents spend significantly more at small businesses compared to the national average. While the national average annual expenditure at small businesses is $469, Austin residents spend approximately $627.30 per year—nearly $50 more than the next best city.
Geographic Trends
It is noteworthy that Florida and North Carolina are the only states with multiple cities represented in the top ten. In contrast, the West Coast is absent from this list. The cities from Florida include Miami and Tampa, while Raleigh and Charlotte represent North Carolina.
Austin’s continued growth in the small business sector reinforces its reputation as a prime destination for entrepreneurs and creates a thriving economic environment that stands out nationally.
