Startup city

Houston named a top city to start a business

Startups fair well in Houston, a new study finds. Photo by Zview/Getty Images

Ten percent of the United States workforce — 15.3 million people — work for themselves, according to the Bureau of Labor Statistics. In honor of National Small Business Week, a recent study sought out the best cities for starting a business, and Houston came in at No. 13.

WalletHub, a personal financial website, used 19 key metrics — such as five-year business-survival rate and office-space affordability — to compare 100 cities in the U.S.

Houston ranked highest in the business environment category with a No. 4 ranking. This ranking considered startups per capita, average growth of business revenue, length of an average work week, etc.

The other two rankings were access to resources and business costs. For those, Houston ranked No. 55 and No. 67, respectively.

The population of Houstonians starting new companies is growing every year. According to the Greater Houston Partnership's data, the greater Houston area added 11,700 firms between 2013 to 2018 — an average addition of 2,340 per year.

Aside from the unclassified new businesses starting up in Houston, the most popular industries for new companies are restaurants, individual and family services, and computer systems design and related services, per the GHP. Within computer systems alone, the region added almost 700 new companies over the past five years.

In a city named the most diverse in the country, about one-third (31.6 percent) of all Houston firms are minority-owned, according to the GHP. Asians own 17.6 per­cent, Hispanics 10.1 percent, Blacks 3.5 percent, and Native Americans, Hawaiians and other groups 0.4 percent. Houston was recently ranked as a top city for minority entrepreneurial success.

Meanwhile, one in five firms (20.5 percent) is female-owned — one in seven (13.8 percent) is equally male/female-owned. While the data varies slightly, another recent study found that Houston had the 7th most startups with female owners.

Perhaps most telling for the WalletHub's findings is that the GHP reports that nearly two-thirds (63.6 percent) of all Houston em­ployers have been in business six years or more.

Texas, which was recently named the top state for female entrepreneurs, fared well overall in the WalletHub study, with seven cities in the top 20. Here's how the rest of the state ranked:

  • Austin came in at No. 4
  • Fort Worth took the No. 11 spot
  • Dallas secured the No. 15 rank
  • San Antonio ranked at No. 16
  • Irving came in at No. 17
  • Laredo was named No. 18
  • Lubbock missed the top 20, but took the No. 23 spot

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Building Houston

 
 

Headquarters in EaDo is looking for two worthy startups to donate coworking space to. Photo courtesy of Headquarters

A Houston-based commercial real estate company in the historic East Downtown District, is giving away free space to two startups who have been negatively impacted by the COVID-19 crisis.

The Headquarters is currently accepting submissions from startups, founders, and entrepreneurs to be considered for free office space through Friday, October 2, with recipients set to be announced the week of October 5th.

Founded in 2014 by brother and sister duo, Peter and Devin Licata, Headquarters provides flexible office space and suites to startups and young businesses in a variety of industries. Inspired by creative office spaces in Denver and coworking sites to create a completely new way to work.

Devin and Peter Licata founded Headquarters six years ago. Photo courtesy of Headquarters

"For Devin and I being local Houstonians," says Peter. "It was very exciting to bring a product to Houston that we had never seen before in the city. When we started the search for a building, we had a very specific idea of how we wanted it to look and feel, and the amenities we wanted to provide."

The building located on 3302 Canal St, was repurposed from an old warehouse built in the mid 20th century. The Licatas spent about eight months designing the building, which had sat vacant for seven years. The design features, evoke a feeling of a corporate campus but for small business which works perfectly for COVID-19 social distancing measures.

"One of the things we wanted was really wide hallways," says Devin. "Typical hallways here are about seven feet, when we were working with our architect we said, double it. The specific visuals are there to invoke a feeling, with an interior courtyard, and lots of natural light.

"Our architects weren't used to working with clients in commercial real estate who were designing based on an office where we would want to work, instead of a client who wanted to maximize every square footage."

The coworking space is adhering to social distancing recommendations. Photo courtesy of Headquarters

The wide open spaces, with hallways over 13 feet wide, high ceilings about 18 feet tall, and HVAC unit that does not recirculate air, along with the office suites that are on average 2 to 3 times larger than other coworking spaces allows all of their tenants to practice social distancing in a safe environment.

Headquarters is monitoring infection rates locally, while following safety guidelines to operate their facility safely. All guests are required to answer health screening questions upon entry and wear face coverings. They continue to clean all common areas and high touch surfaces with EPA-approved products and provide hand sanitizer at all points of entry.

With 35,000 square feet in total and 45 office suites, the Licatas say they chose the East End as their headquarters because of its close proximity to downtown and renewing growth of the community.

"The East End was an obvious location for us, we had been looking for buildings in the area for other development opportunities," says Devin. "Given it's proximity to downtown and its access to three different freeways, from a commuter standpoint it was really important as well as the community aspect."

Headquarters is located just east of downtown Houston. Photo courtesy of Headquarters

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