Dallas, December 27, 2025
Dallas has been highlighted as the third-best large U.S. city for startups in a recent study by CommercialCafe. The report analyzed major cities based on various factors such as startup density, survival rates, and freelance workforce growth. Dallas-Fort Worth has shown robust entrepreneurship with a notable 19.7% increase in new business establishments and a high survival rate of nearly 65%. The city’s favorable economic environment further supports its ranking.
Dallas Named No. 3 Best Large U.S. City for Startups
Dallas has been recognized as the third-best large U.S. city for launching new businesses, according to a recent study by CommercialCafe. The report evaluated major U.S. cities based on factors such as office and coworking costs, startup density, and survival rates.
Key Findings
- Startup Density and Growth: Dallas-Fort Worth boasts a high concentration of startups, with approximately 11% of businesses being less than a year old. Over the past five years, the rate of new business establishments has increased by 19.7%.
- Survival Rates: Nearly 65% of startups in the region remain operational up to five years after their inception, indicating a strong survival rate.
- Freelancer Availability: The freelance workforce in Dallas-Fort Worth has grown by 14% from 2019 to 2023, providing essential support for new businesses seeking specialized services.
Comparative Rankings
The top five cities for startups, as per the study, are:
- Phoenix, Arizona
- San Antonio, Texas
- Dallas, Texas
- Fort Worth, Texas
- Jacksonville, Florida
Background Context
Dallas has consistently demonstrated a favorable environment for entrepreneurship. In a previous study by WalletHub, Dallas ranked 16th among large U.S. cities for starting a business, highlighting its competitive position in the national landscape. The city’s robust economy, absence of state income tax, and supportive business community continue to attract and nurture new ventures.
Key Features of Dallas as a Startup Hub
| Feature | Details |
|---|---|
| Startup Density | Approximately 11% of businesses are less than a year old. |
| Startup Growth | New business establishments have increased by 19.7% over the past five years. |
| Startup Survival Rate | Nearly 65% of startups remain operational up to five years after inception. |
| Freelancer Availability | The freelance workforce has grown by 14% from 2019 to 2023. |
| State Income Tax | Texas does not impose a state income tax, benefiting businesses and entrepreneurs. |
Conclusion
Dallas’s recognition as the third-best large city for startups highlights the resilience and innovation of its entrepreneurial community. With favorable conditions, including a strong survival rate and an expanding freelance workforce, Dallas stands out as a prime location for new business development. Local residents and stakeholders are encouraged to support small businesses as they contribute to the vibrancy of the Dallas economy and create lasting job opportunities.
Frequently Asked Questions (FAQ)
What factors contributed to Dallas being ranked third for startups?
The ranking was based on factors such as office and coworking costs, startup density, and survival rates. Dallas-Fort Worth’s high concentration of startups, strong survival rates, and growing freelance workforce were key contributors.
How does Dallas compare to other cities in the study?
Dallas ranked third, following Phoenix and San Antonio, and just ahead of Fort Worth, which ranked fourth. This positions Dallas as a leading hub for new business establishments in the U.S.
What is the survival rate of startups in Dallas-Fort Worth?
Approximately 65% of startups in the Dallas-Fort Worth area remain operational up to five years after their inception, indicating a strong survival rate.
How has the freelance workforce in Dallas-Fort Worth changed recently?
The freelance workforce in the region has grown by 14% from 2019 to 2023, providing essential support for new businesses seeking specialized services.
What other cities are considered favorable for startups?
Other cities that ranked highly in the study include Phoenix, San Antonio, Fort Worth, and Jacksonville, Florida, all offering conducive environments for new business ventures.
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The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
