The Texas Business Climate: Where Less Is Best

November 23, 2016 by Midlothian Economic Development


What constitutes a favorable business climate for expanding and relocating businesses?

As frequently noted in multiple surveys of business executives and site consultants, certain measures of competitiveness serve as key indicators of business-friendliness – and it’s no secret that a state’s regulatory environment is an important piece of that picture.

In this ultra-competitive era, expanding companies – large and small – need to get new businesses up and running as efficiently as possible.

This is one of several areas where the Texas business climate excels: less red tape, less regulations, less headaches in general.

Solid Foundation

Not surprisingly, this is also why Forbes magazine, Chief Executive magazine, Site Selection magazine, CNBC,, and others consistently rank Texas as one of the top states in which to do business.

Additionally, when it comes to business costs, the Texas business climate often soars above West Coast rivals where pricey real estate results in higher taxes, a higher cost of living, and higher wages.

And while California is often criticized for its regulatory burdens, companies and site selectors frequently cite Texas’ predictable regulatory environment as beneficial to growing businesses.

In fact, the San Francisco-based Pacific Research Institute (PRI), ranked the Lone Star State No. 3 in its 2015 report, "The 50-State Small Business Regulation Index."

According to report author Wayne Winegarden, Ph.D., “The purpose of the ‘50-State Small Business Regulation Index’ is to create a benchmark that facilitates the comparison of regulatory burdens across the states, and provide insights regarding how each state can enact pro-growth regulatory reforms.”

The index measured 14 specific regulatory components including:

  • Workers Compensation Insurance
  • Unemployment Insurance Programs
  • Short-term Disability Insurance Requirements
  • Minimum Wage Regulations
  • Family Leave Regulations
  • Right-to-Work State
  • Occupational Licensing Rules
  • Land Use Regulations
  • State Energy Regulations
  • Tort Liability Environment
  • Whether a State Implements Regulatory Flexibility
  • Telecommunication Regulations
  • Start-up & Filing Costs
  • Whether the State Is a Control State (only state stores/state sanctioned stores can sell certain alcohol products)

Strategic Partnerships

Even more lucrative is the fact that the Texas business climate offers low taxes, no corporate income tax, and no individual income tax. Furthermore, the state enjoys a relatively relaxed and easily navigated regulatory environment conducive to companies of any size. And not to mention the state’s enviable workforce. 

Just 26 miles south of the Dallas-Fort Worth metro, the blossoming community of Midlothian embraces this Lone Star philosophy and strives to be a one-stop shop when it comes to permitting and licensing. Through a wealth of city and state partnerships, Midlothian guides companies through a variety of services available to ensure optimal startup efficiency and long-term viability.

With its positive can-do attitude and entrepreneurial spirit, it’s easy to see just what Texas means when it asserts itself as “wide open for business.” The Texas business climate boasts a consistent track record of steady growth and job creation as well as economic success and support.

There are so many reasons to consider Texas during the site selection process. It’s not only a great place to be in business, but it’s also a great place to start a business. After all, more than 2.4 million small business owners can’t be wrong. 

We invite you to explore the Texas business climate and discover how less can turn out to be tremendously more

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