MCLENNAN COUNTY, Texas — A recent study analyzing costs, funding sources and barriers ranked Waco 14th on the list of best cities in the country for entrepreneurs to open a business.
- The study found the average commercial rent in Waco is $18.61 a square foot and the average SBA loan is more than $800,000, while a standard LLC filing in Texas costs $300.
- Mila Rosa Café owner Kayla Olvera, who started her business with a tent in 2019 and opened a location on 25th Street in 2025, said rent costs — especially near Magnolia — can be a barrier, but community connection is key to staying open.
- The City of Waco confirmed business permits have increased since 2024 and issued a statement saying it is committed to supporting economic growth through infrastructure investment, incentive programs and a collaborative approach with the business community.
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BROADCAST TRANSCRIPT:
Waco ranks 14th on a list of the best cities across the country for entrepreneurs to open a business, according to a recent study that analyzed costs, funding sources and barriers.
The study found the average commercial rent in Waco is $18.61 a square foot and the average SBA loan in Waco is more than $800,000. A standard LLC filing cost in Texas is $300.
Mila Rosa Café owner Kayla Olvera started her coffee shop with a tent in 2019, then opened her own location on 25th Street in 2025. She is now expanding downtown after a great rent price became available on 2nd Street.
"We definitely chose Waco for a reason," Olvera said.
Olvera said the financial landscape for business owners in Waco can be challenging, particularly in certain areas of the city.
"So, um, typically it's very harder to open up, especially here in downtown Waco. Um, usually the expenses for rent are extremely high, um, kind of the closer you get to Magnolia, the more expensive it kinda gets," Olvera said.
Personal finances, city grants, a PPP loan and tax credits all played a role in opening Mila Rosa Café. Olvera said the reason the business stays open and continues to expand is the environment they have created for their customers.
"Trying to create a space whether that be the aesthetic whether that be a recipe or a drink or just a cute little post," Olvera said. "Community doesn't leave, they stay so when you create something create it for the community and they'll come."
Olvera said the café caters to a broad customer base.
"We cater to the tourists, we cater to the students but also we know who's not leaving and so we have to cater to them in order for us to survive day to day," Olvera said.
The City of Waco responded with a statement on the ranking.
"It is encouraging to see Waco recognized as an attractive place to start and grow a business. We continue to see strong commercial permitting activity and ongoing private investment throughout the city, reflecting confidence in Waco's future. The City of Waco is committed to supporting economic growth through strategic investments in infrastructure, thoughtful incentive programs, an efficient and predictable development review process, and a collaborative approach to working with the business community to help projects move forward," the city said.
In 2024, 25News reported 30 brand new business permits were given. The City of Waco could not provide specific updated numbers, but confirmed the total number of permits given has increased. Garland and Mesquite also made the list.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
