Austin, Texas, has solidified its status as a “small business haven” by being named the fastest-growing city for small business expansion in 2026. This accolade comes from a recent study conducted by USA Business Insurance. The study highlighted Austin’s vibrant live music scene, culinary offerings, and rapidly developing tech industry.
Top Cities for Small Business Growth
The study evaluated cities based on several key metrics, including:
- New business applications filed with the Census Bureau
- Small business employment growth
- Commercial permits issued
- Population and workforce migration trends
Following Austin, the city rankings included:
- Austin, Texas
- Miami, Florida
- Phoenix, Arizona
- Nashville, Tennessee
- Tampa, Florida
- Raleigh, North Carolina
- Boise, Idaho
- Charlotte, North Carolina
- Salt Lake City, Utah
- Atlanta, Georgia
Austin’s Business Ecosystem
This recognition is not an isolated instance for Austin. In 2024, the city ranked fifth nationally for small business success according to the Commercial Real Estate Development Association. Furthermore, a WalletHub study in 2025 named Austin as the third-best location for launching a new business.
The appeal of Austin for small business owners is bolstered by its robust business community and resource availability. Additionally, local consumer support stands out, with residents spending an average of $627.30 per year at small businesses. This figure exceeds the national average of $469, demonstrating Austin’s commitment to supporting local enterprises.
State Representation in Top Rankings
Austin’s achievement highlights Florida and North Carolina as notable states, each featuring multiple cities in the top ten. Miami ranks second, Tampa fifth, Raleigh sixth, and Charlotte eighth. Interestingly, all five cities in the top 10 from the East Coast contrast sharply with the absence of any West Coast cities.
As small businesses continue to flourish, Austin remains at the forefront, attracting entrepreneurs and startups eager to capitalize on its dynamic environment.
