Austin ranks No. 1 among major U.S. metros for women-owned businesses

Austin ranks as the best major metro in the nation for women-owned businesses, according a new study that evaluated more than 200 cities across the U.S. 

The study by CoworkingCafe, an online listing service for flex workspaces, grouped U.S. cities by population size and assessed them based on 14 separate indicators across three categories: women’s entrepreneurship, economic conditions and the local labor and talent pool. Austin placed first among metros with populations of more than 1 million.

“Austin isn’t just a tech darling, it’s rapidly establishing itself as one of the best cities in the U.S. for women who want to own the whole company,” the report said. 

Several economic and demographic factors helped push Austin to the top of the pack. The Austin-Round Rock-San Marcos metro area recorded 50.6% GDP growth, the highest among large metros included in the analysis.

Women-owned businesses also make up a significant share of the local economy. In the Austin metro area, 25.6% of businesses are owned by women, compared with 22.9% nationally, according to the data from CoworkingCafe. 

The region also ranked highly for startup activity. The Lone Star State’s capital city saw 2,321 new businesses per 100,000 residents, placing sixth among large metros and indicating a steady pipeline of new ventures. 

Labor force participation among women is another factor highlighted in the report. About 65.8% of women in the Austin metro area participate in the workforce, compared with 58.9% nationally. About 11.1% of Austin residents are self-employed, while 48% hold a bachelor’s degree or higher. Median annual earnings for women in the metro area were $50,953, ranking 10th among large metros analyzed.

CoworkingCafe also said the Austin metro area recorded 11.7% population growth, the highest among large metros in the study.

“What makes Austin particularly exciting is how quickly its institutional support is catching up to its reputation.” the report said. “The city launched a Women Entrepreneurs Council at the Austin Chamber of Commerce and has formally recommended and taken steps toward establishing a Women’s Business Center — moves that turn Austin’s entrepreneurial energy into something more structured and lasting.”