Melting pot

Houston named a top city for minority entrepreneur success

The Bayou City has been named the top Texas metro for minority entrepreneurial success. Photo by Zview/Getty Images

Houston reigns as the top major metro area in Texas for successful minority entrepreneurs, a new study shows.

The Houston area ranks No. 11 in the study, done by lending marketplace LendingTree, with Dallas-Fort Worth at No. 17, Austin at No. 29, and San Antonio at No. 34. In all, the study measures the success of minority entrepreneurs in the country's 50 largest metro areas.

Houston is no stranger to high marks for its minority-entrepreneur environment.

In 2017, Expert Market ranked Houston the No. 1 city in the U.S. for minority entrepreneurs. A year earlier, Rice University's Kinder Institute noted that the Houston area ranked sixth in the U.S. for metro-area concentrations of minority entrepreneurs.

For its ranking, LendingTree looked at four metrics:

  • Percentage of self-employed minorities in each metro area. (It's 2.5 percent in Houston).
  • Minority businesses ownership parity. A metro area scores well in this regard if the share of minority-owned businesses aligns with the percentage of minority residents. (Houston received a score of 59 in this category, with 100 being a perfect score.)
  • Percentage of minority-owned businesses that posted at least $500,000 in annual revenue. (It's 46.7 percent in Houston.)
  • Percentage of minority-owned businesses that have operated for at least six years. (It's 56.2 percent in Houston).

Ingrid Robinson, president of the Houston Minority Supplier Development Council, credits the Houston area's strong showing in the LendingTree study to a number of factors.

For one thing, minority entrepreneurs in Houston enjoy access to a vast array of resources at each stage of a business' growth, she says. For example, Houston Minority Supplier Development Council tailors its programs, seminars, and services to minority businesses in four revenue categories, ranging from less than $1 million a year to more than $50 million a year.

Furthermore, Robinson says, business development groups in the Houston area work more collaboratively than they do in many other regions.

"We truly try not to duplicate efforts, but to support one another and direct minority entrepreneurs to the appropriate organization that can best meet their needs," she says.

Robinson underscores the diversity of industries in the Houston area, including energy, healthcare, and aerospace. This diversity helps sustain business activity during tough economic times, she says.

Then, there's the fact that Houston is diverse in its demographics. A report released by Rice University proclaimed Houston is the most racially and ethnically diverse major metro area in the U.S. More than 145 languages are spoken throughout the region by a robust mix of white, Hispanic, African-American, and Asian residents.

"Houston is the only place in America that you can go to today that reflects the demographics projected for our entire country in 20 years," Robinson says. "So we have the opportunity to lead the way in showing the rest of our nation that minority business is good business for everyone."

Minority-owned businesses in the Houston area enjoy strong support from local, county, and state elected officials, Robinson says.

"The tone set by our governing bodies to ensure the broadest inclusion of minority entrepreneurs in governmental contracts makes Houston attractive to individuals seeking opportunities," Robinson says.

During his 2015 election campaign, Houston Mayor Sylvester Turner stressed that a competitive business environment — including a thriving community of minority-owned, woman-owned and small businesses — "is critical to Houston's future economic health."

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Building Houston

 
 

A Houston startup that created a remote monitoring and care platform has raised millions in financing. Image via michealthcare.com

A virtual health care and analytics provider startup has closed its latest round of funding for a total of $27 million in financing.

Medical Informatics Corp. closed a $17 million series B co-led by Maryland-based Catalio Capital Management and California-based Intel Capital. The financing also includes an additional $10 million in debt led by Catalio through Catalio’s structured equity strategy, according to a news release.

“We are excited to have had this round co-led by Catalio and Intel Capital," says Emma Fauss, CEO and co-founder of MIC, in the release. "Catalio brings significant financial and technical resources, while Intel Capital possesses strong operational and industry experience, and we look forward to continuing to leverage both firms’ expertise as we continue to scale.”

MIC created an FDA-cleared virtual care platform, called Sickbay, that gives health care providers and hospitals away to remotely monitor patients in any setting with vendor-neutral real-time medical device integration, workflow automation and standardization.

“We have seen an increased demand for our solution as our clients face significant staffing challenges and are looking for ways to amplify and empower their workforce," Fauss says in the release. "Some of the largest health care systems in the country are standardizing their infrastructure on our Sickbayplatform while consolidating IT spend."

Other participants in the round included new investors TGH Innoventures, Tampa General Hospital’s innovation center and venture fund, and Austin-based Notley — as well as existing investors San Francisco-based DCVC, the Texas Medical Center, and nCourage, a Houston-based investment group.

As a part of the round, two individuals from Catalio will join the board at MIC. Jonathan Blankfein, principal at Catalio will join the board of directors, Diamantis Xylas, head of research at Catalio, will join as board observer.

“Health care systems’ need for high-caliber, cost-saving, data-driven technology is only going to increase, and MIC’s proprietary platform is perfectly positioned to address some of the most critical clinical challenges that health care organizations face,” says Blankfein in the release. “We look forward to continuing to support MIC’s strong team as it continues to deliver better outcomes for health care organizations and patients alike.”

Amid the pandemic and the rising need for remote care technology, MIC scaled rapidly in the past two years. The company will use the funding to continue fueling its growth, including hiring specialized talent — deep product specialists and client engagement teams — to support long-term strategic partnerships.

“One of the main barriers to advanced analytics in health care is the siloing of data and today there is a significant need for a platform to enable flexible, centralized and remote monitoring at scale and on demand,” says Mark Rostick, vice president and senior managing director at Intel Capital, in the release. “Medical Informatics is setting a new standard of health care by removing these data silos for health care providers of all sizes and transforming the way patients are monitored from hospital to home with real-time AI.”

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