Starting a Small Business in Texas

Welcome to the Small Business Startup Texas Franchise Directory! Here, you’ll find everything you need to begin your journey to business ownership in The Lone Star State. If you’re thinking about starting a small business in Michigan, read on for an overview of the state economy. Afterward, explore business opportunities and franchises for sale with our Texas Franchise Search Tool.

Texas Industry Trends

If an industry is performing well, business opportunities within it are often worth exploring. Begin your market research with this list of the Texas economy's largest industries in 2022. Afterward, take your research one step further by investigating niche markets and B2B opportunities within one of these top revenue-generating industries.

1. Gasoline & Petroleum Wholesaling (Revenue: $298.1 billion)
2. Oil Drilling & Gas Extraction (Revenue: $210.9 billion)
3. Petroleum Refining (Revenue: $170.2 billion)
4. Gasoline & Petroleum Bulk Stations (Revenue: $149.6 billion)
5. New Car Dealers (Revenue: $116.0 billion)
6. Property, Casualty & Direct Insurance (Revenue: $80.0 billion)
7. Hospitals (Revenue: $76.9 billion)
8. Supermarkets & Grocery Stores (Revenue: $72.2 billion)
9. Gas Stations with Convenience Stores (Revenue: $71.7 billion)
10. Public Schools (Revenue: $69.5 billion)

Texas Sector Statistics

When starting a small business in Texas, gross domestic product (GDP) is another tool that entrepreneurs can use to make investment decisions. Generally, a steadily rising GDP means that people are spending more money and more jobs are being created.

The three sectors that contributed most to Texas’ GDP in 2022 were Manufacturing; Real Estate, Rentals & Leasing; and Mining. Combined, these three sectors represented 38.3% of the state’s GDP. In 2022, sectors that contributed most to Texas’ GDP included:

1. Manufacturing (Value: $234.3 billion*| Annual growth: 1.4%)
2. Real Estate, Rentals & Leasing (Value: $212.9 billion*| Annual growth: 6.2%)
3. Mining (Value: $192.7 billion*| Annual growth: -6.0%)
4. Professional, Scientific & Technical Services (Value: $154 billion*| Annual growth: 7.8%)
5. Wholesale Trade (Value: $133.3 billion*| Annual growth: 1.6%)
6. Healthcare & Social Assistance (Value: $105.8 billion*| Annual growth: 2.6%)
7. Finance & Insurance (Value: $101.6 billion*| Annual growth: 6.3%)
8. Retail Trade (Value: $98.6 billion*| Annual growth: 2.0%)
9. Media Creation & Distribution (Value: $94.4 billion*| Annual growth: 7.0%)
10. Administration, Business Support & Waste Management Services (Value: $70.8 billion*| Annual growth: 10.7%)
11. Construction (Value: $64 billion*| Annual growth: -1.5%)
12. Transportation & Warehousing (Value: $49 billion*| Annual growth: -2.1%)
13. Management of Companies & Enterprises (Value: $39.1 billion*| Annual growth: 14.2%)
14. Accommodation & Food Services (Value: $38.4 billion*| Annual growth: 3.1%)
15. Utilities (Value: $27.7 billion*| Annual growth: 1.0%)
16. Educational Services (Value: $11.6 billion*| Annual growth: 0.7%)
17. Arts, Entertainment & Recreation (Value: $9 billion*| Annual growth: 0.9%)
18. Agriculture, Forestry, Fishing & Hunting (Value: $8.5 billion*| Annual growth: -10.7%)

*Approximately

Texas Population Statistics

A growing population often means greater demand and a steady flow of new customers. If you are undecided about the location of your new business, start by investigating population statistics. Afterward, take your research a step further by exploring population demographics. By doing so, you can decide whether a location is a good match for your target market.

In 2022, counties with the highest populations in Texas included:

1. Harris (Population: 4.8 million | Annual growth rate*: 0.6%)
2. Dallas (Population: 2.6 million | Annual growth rate*: 0.2%)
3. Tarrant (Population: 2.2 million | Annual growth rate*: 1.1%)
4. Bexar (Population: 2.1 million | Annual growth rate*: 1.2%)
5. Travis (Population: 1.4 million | Annual growth rate*: 2.0%)
6. Collin (Population: 1.1 million | Annual growth rate*: 3.3%)
7. Denton (Population: 981,600 | Annual growth rate*: 3.3%)
8. Fort Bend (Population: 893,000 | Annual growth rate*: 3.1%)
9. Hidalgo (Population: 889,900 | Annual growth rate*: 0.8%)
10. El Paso (Population: 846,300 | Annual growth rate*: 0.3%)
11. Williamson (Population: 670,000 | Annual growth rate*: 4.1%)
12. Montgomery (Population: 664,900 | Annual growth rate*: 3.0%)
13. Cameron (Population: 426,500 | Annual growth rate*: 0.3%)
14. Brazoria (Population: 393,100 | Annual growth rate*: 1.6%)
15. Bell (Population: 384,000 | Annual growth rate*: 1.9%)
16. Nueces (Population: 364,400 | Annual growth rate*: 0.2%)
17. Galveston (Population: 352,900 | Annual growth rate*: 1.1%)
18. Lubbock (Population: 321,500 | Annual growth rate*: 1.1%)
19. Webb (Population: 280,600 | Annual growth rate*: 0.5%)
20. McLennan (Population: 265,300 | Annual growth rate*: 1.1%)

*From 2017 to 2022.

Texas Business Opportunities

We hope this snapshot of the Texas economy helps as you investigate business opportunities in The Lone Star State! Starting a small business in Texas is an exciting journey, and we know you’re probably eager to get started. But remember, take your time to explore all your options. While you’ll always have the “opportunity” to start your own business, sometimes, it makes more sense to invest in an opportunity that already exists. These are called “Franchise Opportunities,” and they offer several benefits, including the recognition of a well-established brand and a proven track record of success.

To learn more, start by exploring franchise opportunities in Texas, below!