According to the annual Kauffman Foundation report, Austin, Texas, ranked No. 1 for overall startup activity in 2015. Entrepreneurs are drawn to the Texas Greenbelt because of the increase in VC activity. New business is booming in Austin, and here’s why the city is shaping up to be America’s next Silicon Valley.
Top Tech Companies Call Austin Home
Austin’s tech boom has created more than 42,000 jobs and the city even boasts one of the lowest unemployment rates in the entire country, according to data reported by Built In Austin. Twenty-eight percent of the top 100 tech companies in Austin are headquartered in the Texas capitol, while 50 percent are headquartered in California. This goes to show that business owners, investors and entrepreneurs are beginning to recognize the city’s potential for software development, consumer web and ecommerce. Some of the top tech companies that are located in Austin, Texas, include WP Engine, Civitas Learning, Spare Foot and Spred Fast.
Taxes in Texas
Tech.co reports that many entrepreneurs are choosing Austin, Texas, over California because of the low cost of running a business. To pay for the basic business needs in San Francisco, small business owners can expect to pay 271 percent more than the national average, according to data from Sterling’s Best Places. Additionally, major companies are flocking to Austin to take advantage of the lack of state taxes.
Affordable Cost of Living
The cost of living in Austin, Texas, compared to California’s tech hub is much more affordable. Entrepreneurs can expect to find more space, and apartments that are three times larger than what they can find in Silicon Valley that also cost less. From properties on Congress and the Arts District, to apartments overlooking Lady Bird Lake or nearby Zilker Park, Rent.com offers a wide variety of apartment listings for eager-to-move entrepreneurs. Apartment hunters can use the well-designed website to browse photos and information on apartments for rent in the Austin area with ease.
There’s also a lot to do in the area. Austin is known as the Live Music Capitol of the World and the city boasts a happening restaurant and nightlife scene. Not only is rent much cheaper in Austin, necessities like groceries and utilities are more affordable as well.
Businesses are Locally Supported
With more than 4,700 tech companies operating in the city, according to Innovate Austin, The Austin Chamber of Commerce has committed to support these businesses. They support local startups by providing events, such as the bi-monthly startup/investor mixer to show their support for local companies. Local businesses are also supported on a community level.
SXSW
For startups and tech entrepreneurs, Austin’s SXSW is an annual can’t-miss event. SXSW provides a great opportunity for small business owners to market their products and services to a large audience via trade shows and more, and you never know who will show up to the innovative tech festival. About 72,000 people show up each year for the event which was created in 1987, according to the SXSW website. Not only does the festival celebrate the startup tech industry, visitors can expect to see today’s hottest interactive media, music and more at the annual SXSW festival that takes over the city of Austin each spring.
