San Antonio's evolving business landscape reflects both challenges and opportunities.
San Antonio has fallen eight spots in WalletHub’s ranking of large U.S. cities for starting a business, now sitting at 64th. While the city scored 46th in business environment, it struggled in costs and resource access. Despite these challenges, sectors like manufacturing and IT show promise. Local efforts aim to revitalize both the economy and historic sites, shedding light on the community’s resilience through tough times.
San Antonio, the vibrant city known for its rich culture and history, has recently received some not-so-great news regarding its business climate. According to the latest report by WalletHub, the city now ranks 64th among large U.S. cities for starting a business, which is a drop of eight spots from last year when it held the 56th position. This slide in rankings has stirred conversation among local business enthusiasts.
The annual WalletHub report evaluated 100 cities across the nation, using 19 different metrics that fall into three main categories: the business environment, access to resources, and costs. These metrics help paint a picture of how friendly a city is for launching and sustaining a business.
Even though the overall ranking doesn’t look great, there’s a silver lining! San Antonio ranked 46th in the business environment category, which measures how supportive the city is for startups and established businesses alike. However, the city slipped in two critical areas: it ranked 55th for business costs and a disappointing 98th for access to resources.
In a surprising twist, Orlando, Florida took the crown as the best large city for starting a business in 2025. This ranking isn’t just a fluke; it reflects the city’s strong job growth and high survival rates for new businesses, two factors that contribute to a thriving economic environment.
It’s important to note that San Antonio isn’t alone in facing challenges. Broader economic trends, such as labor costs and talent availability, are impacting the city’s business climate. Local officials point out that the hurdles entrepreneurs are experiencing in San Antonio aren’t unique but resonate across multiple markets. Economic fluctuations and hiring challenges have many scratching their heads about the future.
Despite the struggles, there is hope on the horizon. Key employment sectors such as manufacturing, IT, and financial services have been growing, even amid some business closures. The Greater SATX organization is actively working with Workforce Solutions to help employees affected by the recent closure of International Paper in San Antonio. This community-focused approach shows a commitment to not just surviving but thriving amidst navigating rough waters.
In a move to preserve local history while also fostering future business growth, the Molak Corporation plans to reopen the historic H.D. Gruene Mercantile Building as a mercantile store in late 2025. This building has an eventful past, having served as a community hub since it was built in 1904. Efforts like these emphasize the city’s balance of honoring its roots while looking forward to new opportunities.
Meanwhile, the real estate market in San Antonio shows a mix of trends. As of July 2024, average home prices hovered around $376,289, reflecting a slight decline of 2% from the previous year. The active listings, totaling 15,056, indicate healthy competition among sellers, suggesting that while the business climate may have slipped, the housing market remains robust.
As San Antonio analyzes the mixed rankings and economic challenges, it remains clear that the city is rich with potential. With ongoing efforts to grow key employment sectors and revitalize historic sites, San Antonio stands poised to enhance its appeal to both new and existing businesses. The journey may be bumpy, but the determination to foster a thriving business community shines bright.
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