A new study identified San Antonio as the most entrepreneurial U.S. city, a distinction based on the brisk growth of its smallest businesses.
The Alamo City posted the nation’s highest year-over-year growth rate in active microbusinesses at 11%, according to a new study published this week by internet domain registrar GoDaddy’s Small Business Research Lab. During fiscal 2025, the city added 9,232 new businesses, outperforming other fast-growing markets including Miami, Milwaukee, El Paso and The Bronx.
“The idea that you need to be in a major coastal city to build something has evolved,” GoDaddy’s small-business economist Alexandra Rosen said in a statement. “Whether it’s a traditional storefront with a digital presence or an online side hustle, entrepreneurs are sustaining momentum and showing there’s growing opportunity in every part of the country.”
New housing data from Zillow helps explain San Antonio’s rise.
As part of a first-of-its-kind partnership with GoDaddy, Zillow found that San Antonio offers a rare combination of strong entrepreneurial growth and affordable living. The city’s typical home value of $278,644 is about a quarter below the U.S. average, while the average monthly rent of $1,398 is 28% lower than the national average.
Recent home construction has also eased competition for housing, making it easier for entrepreneurs to relocate, buy homes and launch businesses.
“When housing is attainable and plentiful, entrepreneurs feel more confident putting down roots and businesses find it easier to attract and keep talent,” Zillow Chief Economist Mischa Fisher said in a statement. “The pandemic fundamentally changed where people want to live and work, and new energy flowed to markets outside of the traditional hotspots.”
Several long-term advantages fuel San Antonio’s business ecosystem, the study noted. Strong migration trends are bringing new talent, skills and experience to the region.
The city’s economic and cultural ties to Mexico and Latin America also provide businesses with unique international connections and market access. San Antonio’s diverse population supports authentic, community-driven businesses that reflect the needs of local neighborhoods.
Rather than being concentrated in a single district or startup corridor, San Antonio’s microbusiness activity is spread across neighborhoods throughout the region, signaling sustainable and widespread economic development, according to the analysis.
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