This story originally appeared on altLINE and was produced and distributed in partnership with Stacker Studio.
Texas small businesses thrive in these counties
In 2021, the IRS received a whopping 5.4 million business applications—an all-time high since the U.S. government began tracking this data in 2004. The year with the second-highest number of new business applications? 2020. Today, small businesses employ nearly half of the nation's workers, according to a Chamber of Commerce report.
It's fair to say that the past few years have been banner years for small businesses, but what about regional differences? The business climate in a small town in Texas is likely not the same as a small town in Connecticut. The Chamber of Commerce report found that the Midwest was the most business-friendly region, thanks to the relatively low cost of living, well-educated workforce, and regulations lowering taxes and easing zoning restrictions for businesses.
Of course, the East and West coasts also have plenty to offer, from California's Silicon Valley and Hollywood studios to New York's financial hub to Massachusetts' prominence in the aerospace, defense, and information technology industries. A few states—including Delaware, Wyoming, and Nevada—even allow you to incorporate your business within their borders without ever setting foot there.
For even more specific data, let's take it a step further by analyzing counties. Are certain counties more friendly to small businesses than others? To pinpoint the areas where small businesses abound, altLINE used Census Bureau data to find the counties in Texas with the highest concentration of small businesses in 2021, calculated as small establishments per 1,000 residents. Small establishments are defined as those with fewer than 500 employees. Counties with fewer than 1,000 residents were excluded from the analysis, as well as counties for which the Census Bureau didn't have population estimates.
Another important factor to consider: States where nonresidents are allowed to incorporate businesses will also have a higher ratio of small businesses to residents since not all small businesses are actually operated by people living in that state.
Taking a close look at the type of counties that topped the list in each state also reveals some interesting trends. World-class vacation destinations are well represented on the lists of each state, perhaps because tourists are looking to get a sense of how the locals live through small businesses like restaurants, bakeries, bars, and boutiques.
While the top counties in each state do include a few major cities, less populated counties with smaller towns are much more common. Although most of the nation's small businesses are located in major metropolitan areas, those that are located in rural areas tend to be more stable—possibly due to loyalty from local residents or the absence of competition from large corporations.
Keep reading to discover the counties in Texas with the highest concentration of small businesses, and see how it compares across 50 states. It just might give you inspiration for your next endeavor.
This story features data reporting by Paxtyn Merten, writing by Annalise Mantz, and is part of a series utilizing data automation across 50 states.
#50. Dimmit County
- Total small business establishments: 214 (25.2 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 8,479
#49. Comal County
- Total small business establishments: 4,434 (25.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 174,891
#48. Collin County
- Total small business establishments: 28,274 (25.4 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 1,114,450
#47. Smith County
- Total small business establishments: 6,061 (25.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 237,114
#46. Winkler County
- Total small business establishments: 189 (25.6 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 7,373
#45. Stephens County
- Total small business establishments: 243 (25.8 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 9,434
#44. Archer County
- Total small business establishments: 225 (25.9 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 8,684
#43. McCulloch County
- Total small business establishments: 197 (26.2 per 1,000 residents)
- Share of establishments that are small: 98.0%
- 2021 population: 7,532
#42. Eastland County
- Total small business establishments: 469 (26.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 17,834
#41. San Saba County
- Total small business establishments: 154 (26.4 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 5,824
#40. Colorado County
- Total small business establishments: 551 (26.8 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 20,592
#39. Washington County
- Total small business establishments: 963 (26.8 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 35,898
#38. Dallas County
- Total small business establishments: 69,637 (26.9 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 2,587,954
#37. Knox County
- Total small business establishments: 90 (27.2 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 3,307
#36. Upton County
- Total small business establishments: 89 (27.5 per 1,000 residents)
- Share of establishments that are small: 97.8%
- 2021 population: 3,241
#35. Ward County
- Total small business establishments: 307 (27.6 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 11,111
#34. Burnet County
- Total small business establishments: 1,430 (28.0 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 51,080
#33. Hamilton County
- Total small business establishments: 233 (28.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 8,238
#32. Kerr County
- Total small business establishments: 1,509 (28.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 53,136
#31. Hansford County
- Total small business establishments: 146 (28.4 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 5,138
#30. Reeves County
- Total small business establishments: 375 (28.8 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 13,002
#28. Dallam County
- Total small business establishments: 210 (29.2 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 7,188
#28. Baylor County
- Total small business establishments: 101 (29.2 per 1,000 residents)
- Share of establishments that are small: 98.1%
- 2021 population: 3,456
#27. Edwards County
- Total small business establishments: 42 (29.4 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 1,431
#26. Brewster County
- Total small business establishments: 282 (29.8 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 9,459
#25. Throckmorton County
- Total small business establishments: 45 (29.8 per 1,000 residents)
- Share of establishments that are small: 93.8%
- 2021 population: 1,508
#24. Potter County
- Total small business establishments: 3,492 (30.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 116,538
#23. Travis County
- Total small business establishments: 39,875 (30.5 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 1,308,544
#22. Glasscock County
- Total small business establishments: 35 (30.7 per 1,000 residents)
- Share of establishments that are small: 94.6%
- 2021 population: 1,142
#21. Fayette County
- Total small business establishments: 763 (30.9 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 24,669
#20. Jeff Davis County
- Total small business establishments: 61 (31.1 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 1,959
#19. Young County
- Total small business establishments: 563 (31.4 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 17,911
#18. Real County
- Total small business establishments: 89 (31.7 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 2,806
#17. Blanco County
- Total small business establishments: 378 (31.8 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 11,890
#16. Gregg County
- Total small business establishments: 4,035 (32.5 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 124,052
#15. Kimble County
- Total small business establishments: 142 (32.6 per 1,000 residents)
- Share of establishments that are small: 98.6%
- 2021 population: 4,350
#14. Stonewall County
- Total small business establishments: 40 (33.1 per 1,000 residents)
- Share of establishments that are small: 88.9%
- 2021 population: 1,208
#13. Kendall County
- Total small business establishments: 1,566 (33.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 46,851
#12. Wheeler County
- Total small business establishments: 166 (33.8 per 1,000 residents)
- Share of establishments that are small: 98.2%
- 2021 population: 4,905
#11. Midland County
- Total small business establishments: 5,754 (34.2 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 168,206
#10. Irion County
- Total small business establishments: 54 (35.3 per 1,000 residents)
- Share of establishments that are small: 94.7%
- 2021 population: 1,531
#9. Sutton County
- Total small business establishments: 116 (35.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 3,284
#8. Shackelford County
- Total small business establishments: 114 (35.9 per 1,000 residents)
- Share of establishments that are small: 98.3%
- 2021 population: 3,177
#7. Sterling County
- Total small business establishments: 50 (36.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 1,382
#6. Reagan County
- Total small business establishments: 118 (36.6 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 3,228
#5. Ochiltree County
- Total small business establishments: 359 (36.8 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 9,763
#4. Hemphill County
- Total small business establishments: 122 (36.8 per 1,000 residents)
- Share of establishments that are small: 96.8%
- 2021 population: 3,315
#3. Mason County
- Total small business establishments: 146 (37.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 3,929
#2. Crockett County
- Total small business establishments: 116 (38.5 per 1,000 residents)
- Share of establishments that are small: 99.1%
- 2021 population: 3,015
#1. Gillespie County
- Total small business establishments: 1,122 (41.1 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 27,282
