Texas beat out tech hubs like California and New York as the best state to start a business. Here's why entrepreneurs should consider making a move to the state.

• Texas is the top state in the US for economic growth and business startups.
• Business Insider recently ranked it the best state in the US for entrepreneurs.
• The state is also a top choice for women-owned businesses, ranked number five overall in FitSmallBusiness' best states in America for female entrepreneurs.
• The top cities in Texas where entrepreneurs are starting companies and raising capital include Austin, Dallas, Houston, and San Antonio.
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The Lone Star State is giving big startup hubs like San Francisco and New York City a run for their money, by matching business opportunity but offering a lower cost of living.

In a country that worries about a recession daily, Texas is economically strong with 2.7 million small businesses. Plus, there is no state income tax. Business Insider recently ranked Texas as the best state in the US for entrepreneurs - the state added small businesses at a rate of 9.5% per year from 2016 to 2018.

The state is also a top choice for women-owned businesses, ranked number five overall in FitSmallBusiness' best states in America for female entrepreneurs. Women in the state of Texas received $497 million in venture capital investment last year, compared to $198 million in 2016, according to a report by Pitch Book.

Austin and Dallas prove that a city doesn't need a coastline to bring in tech talent. As Business Insider's Katie Canales reported, Austin has been a hotbed for tech companies for decades. Last year, WalletHub ranked seven Texas cities among the top 20 best large cities in the US to start a business.

Tom Nolan is the president of Austin-based jewelry company Kendra Scott. He moved to the area four years ago after having been in New York City and Silicon Valley. "The local venture community is extraordinary here. They want to back founders and smart people, and it's a welcoming, comfortable environment and a safe harbor in a lot of ways for people to start and get businesses off the ground," he told Business Insider.

He said quality of life in Austin is another reason the city is desirable for so many companies, such as Outdoor Voices, Yeti, and Whole Foods which all have headquarters there. His advice to entrepreneurs looking to start their business in Texas: Build a company around good people.

"Every company is only as strong or as weak as its people are and you're getting a head start here, because there's so many great people, hard working, smart, diligent, entrepreneurial-minded folks here that want to make an impact in business and their communities," he said.

Here are the top cities in Texas where entrepreneurs are starting companies and raising capital.