Black history month

Texas named second-best state for black entrepreneurs

Texas was ranked among the top states for black entrepreneurs. Getty Images

In honor of Black History Month, a study was conducted to see which states have the best environment for black entrepreneurs — and Texas rose to the top.

The Lone Star State was ranked No. 2 in the inaugural FitSmallBusiness study, only behind Georgia. Florida, California, and North Carolina rounded out the top five, in that order. The ranking factored in metrics such as start-up growth, cost-of-living, black business success, and social equality.

"Entrepreneurship is the backbone of the American economy and minority-owned businesses are no exception to that fact," says FitSmallBusiness's special projects editor, Michael De Medeiros, in the news release. "With this being the inaugural study, our goal was to focus on the data that paints an overall picture of what the African American entrepreneur faces in the business world."

Breaking down the metrics for the state, Texas ranked No. 4 for three metrics —black business success, startup climate and financial health. However, when it came to social and financial equality — which factored in education, health, mortality rate, etc. — the state ranked No. 17.

The study used reputable reports from the United States Census Bureau, WalletHub, U.S. News & World Report, and more. From these reports, the study found that black-owned firms have grown 34 percent from 2007 to 2012, to now over 2.6 million companies. The top 100 black-owned companies generated $30 billion in 2018, but only 1 percent of venture-backed startup founders were black.

In addition to these metrics, the study also polled over 1,300 U.S. citizens regarding their own experience with black entrepreneurship. When asked about opportunities for black entrepreneurs compared to recent history, over 21 percent of respondents said it was about the same; however, more than half responded that there were somewhat or much more opportunities than before.

"While we weren't surprised by certain findings, some of the state rankings told an interesting story of the unique journeys that African American entrepreneurs have to traverse," De Medeiros continues in the release. "Ultimately, we hope that our continuing work to identify the best states for minority entrepreneurship will lead to new businesses outside of just the most prosperous areas of the U.S."

Austin-based Capital Factory — a startup development and investment organization — in partnership with DivInc, has launched its second annual startup pitch competition for black founders. The application is live now, and the deadline is March 20. Five startups will be invited to pitch on April 14th at Capital Factory's Black in Tech Summit, and one will walk away with a $100,000 investment.

The Ion's accelerator program has pivoted to more prominately feature startups with resiliency solutions. Photo courtesy of The Ion

The Ion's accelerator program has taken the current COVID-19 outbreak as an opportunity to focus on resiliency. The Ion Smart and Resilient Cities Accelerator, as it's now known, will launch it's second cohort virtually at the end of the month.

"Resiliency has always been a core pillar of our accelerator — in my opinion, you really can't have a smart city unless you're a resilient city," Galib tells InnovationMap. "Language is so important to our culture, and we had not had that word in the accelerator, and so now we do."

The change is effective immediately and comes just ahead of the accelerator's second cohort, which will focus on air quality, water purification, and clean tech. Just like the first cohort, the selected startups will participate in a few months of programming — this time, all online — before entering into pilot programs with the city of Houston.

Later in this spring, the accelerator plans to call for remote education and online technologies. With schools closed, Galib says she's seen a need for tech optimization for both students and teachers.

"By harnessing smart technologies, cities become more resilient in the face of crises," says Gabriella Rowe, executive director of The Ion, in a news release. "The innovation of the Ion Smart & Resilient Cities Accelerator will empower and create the smart technology we need to keep our city's operations moving and our residents safe as we inevitably face sociological challenges and natural disasters. We are excited to play a role in improving our city's fabric and quality of life."

The first cohort resulted in a collective fifteen projects across nine startups. The program is backed by the city of Houston, Microsoft, Intel, and TXRX. The third cohort is expected to launch toward the end of 2020, and Galib says she's not sure what the focus will be yet.

"As we look toward the Ion's opening in January 2021, I look at the accelerator program and its capacity to accelerate entrepreneurship spirit," Galib says. "I truly see the next few months as a chance for us to double down on our efforts to find entrepreneurship everywhere in Houston so that we see every entrepreneur from all walks of life."