After ranking as the third-best large U.S. city for starting a business last year, Austin took a surprising tumble into the 24th spot nationally for 2026.

WalletHub’s annual report, “Best Large Cities to Start a Business (2026)” compared 100 U.S. cities based on 19 relevant metrics across three key dimensions: business environment, access to resources, and costs. Factors that were analyzed include five-year business survival rates, job growth comparisons from 2020 and 2024, population growth of working-age individuals aged 16-64, office space affordability, and more.

Florida cities locked other states out of the top five best places in America for starting a new business: Tampa, Orlando, Jacksonville, Hialeah, and St. Petersburg.

Austin’s business environment ranked 11th best in the country, and the city ranked ninth in the “access to resources” category. The city also tied with Boise, Idaho, and Fresno, California, for the highest average growth in the number of small businesses nationally.

Austin lagged behind in the “business costs” ranking, coming in at No. 80 overall. This category examined metrics such as the city’s working-age population growth, the share of college-educated individuals, financing accessibility, the prevalence of investors, venture investment amounts per capita, and more.

Earlier this year, WalletHub declared Texas the third-best state for starting a business in 2026, and several Houston-area cities have seen robust growth after being recognized among the best career hotspots in the U.S. WalletHub also ranked Austin on its top-10 list of the best U.S. cities to find a job. Entrepreneurial praise has also been extended to 15 Austin-based innovators that made Inc Magazine’s 2026 Female Founders 500 list.

Texas cities with strong environments for new businesses
Multiple cities in the Dallas-Fort Worth Metroplex can claim bragging rights as the best Texas locales for starting a new business. Dallas ranked highest overall — appearing 11th nationally — and Irving landed a few spots behind in the 16th spot. Arlington (No. 23), Fort Worth (No. 30), Plano, (No. 35), and Garland (No. 65) followed behind.

Only six other Texas cities earned spots in the report: Houston (No. 26), Lubbock (No. 36), Corpus Christi (No. 39), San Antonio (No. 64), El Paso (No. 67), and Laredo (No. 76). Corpus Christi and Laredo also topped WalletHub’s list of the U.S. cities with the most accessible financing.

“From the Gold Rush and the Industrial Revolution to the Internet Age, periods of innovation have shaped our economy and driven major societal progress,” the report’s author wrote. “However, the past few years have been particularly challenging for business owners in the U.S., due to factors such as the COVID-19 pandemic, the Great Resignation and high inflation.”

Jay Thomas grew up like any kid, laughing at silly things and making up funny names.

So in the ’90s, when Tejano superstar Bobby Pulido’s songs played on the radio, young Jay and his peers couldn’t help but rhyme his last name with the Spanish word pudrido (which means rotten in English).

“We grew up calling him that just because it was funny,” he told Austin Signal host Jerry Quijano.

When he was thinking of a name for his drag persona, Thomas created a list.

“I was thinking of some queer icons and some not queer icons,” he said. “This one just resonated because he is a Tejano star. And in the ’90s he was this really big heartthrob that everybody wanted to be or be with.”

And three years ago, Thomas became Drag King Bobby Pudrido.

He thought it would be fun to impersonate a masculine figure from the Latino community and perform for an audience attracted to that type of energy. He also wanted to bring his culture into his drag.

Pudrido’s name has new recognition these days: Tejano singer Pulido decided to retire from music and go into politics. He’s running for Congress in South Texas’ District 15 against incumbent Republican Monica De La Cruz.

Both in an out of drag, Pudrido is also politically vocal. He advocates for trans rights and against the drag ban that went into effect statewide in March. The law prohibits drag performances in public properties or in front of children. Venues that host these performances can be fined up to $10,000.

“As a drag artist, one of the things we need to do is get booked so we can pay our bills,” Pudrido said.

Even though it’s unclear whether the ban affects some venues, he said, he thinks certain business owners won’t book drag performers because of the risk of being fined.

But as a working-class artist, he doesn’t have the luxury to dwell on it.

“You have to go to work, because you need to pay your bills,” he said.

The law has taken an emotional toll on him, too.

“The way it chips away at a queer person to hear any type of anti-queer legislation pass is something that is really big for me,“ he said. “We are constantly — just as human beings — trying to maintain our mental health. “

But that doesn’t mean his love for performing has been diminished. In fact, quite the opposite is true.

“It has fueled me,” Pudrido said. “Right now I’m in the angry phase where I want to be louder.”

As a performer and producer, the drag king has put on shows in the Austin area and recently traveled back to his hometown in Laredo for a show.

“It’s hard for drag kings to get booked sometimes, so we are still far away from the perfect ideal world for [them],” he said. “But the fact that I have a platform at all is huge.”

Pudrido’s passion for performing comes from his drag ancestors, “who started the art form as a way of being political and of being against the systems that were oppressing queer people.”

Drag King Bobby Prudido is currently producing his second queer quinceañera, “Con Mucho Amor,” with an anticipated show date in the fall.