Two Austin startup veterans and representatives from the City of Austin and Greater Austin Chamber of Commerce explained why the city has a healthy environment that supports and encourages entrepreneurship.

"This is one of the best entrepreneurial hubs in the country," said Susan Davenport, the chamber's senior vice president for Global Technologies Strategy.

During a March 9 SXSW Interactive panel, Davenport said Austin added 5,500 new technology jobs in the first three quarters of 2012 and has more than 4,400 tech companies.

"Austin has a good track record of wonderful and healthy respect for entrepreneurism," she said.

She said that because the metro area includes The University of Texas and Texas State University, there are all kinds of entrepreneurial opportunities from that student population.

Jim Butler, creative industries development manager for the city's Economic Growth and Redevelopment Services Office, said the city partners with the chamber to offer a host of services for small businesses and to retain and help companies grow in Austin. Butler said the city also focuses on improving the overall quality of life.

"We have programs to support the music, film and art scene and make it a place that is not purely focused on business," he said.

Kevin Koym, one of the co-founders of tech accelerator Tech Ranch Austin and a startup veteran, said what sets Austin apart from other tech cities is that it builds communities around the individual.

"What Austin understands more than anywhere else in the world is this community effort of 'we're going to help each other,'" he said.

Bijoy Goswami, who founded BootstrapU and has also started several startups, said Austin is all about being yourself.

'What people are doing in Austin is all of us are working on that, figuring out our identity," he said.