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

 
 

As of this week, Lara Cottingham is the chief of staff at Greentown Labs. Photo via LinkedIn

The country's largest climatetech startup incubator has made a strategic new hire.

Lara Cottingham is the new chief of staff for Greentown Labs, a Boston-area company that opened in Houston earlier this year. Cottingham previously served as the city of Houston's chief sustainability officer and the chief of staff for the city's Administration and Regulatory Affairs Department for the past seven years. In her new role, Cottingham will oversee the day-to-day operations and communications for Greentown's CEO Emily Reichert, along with key stakeholder engagements and strategic initiatives for the incubator.

"Lara brings a tremendous wealth of knowledge and experience to our team from her dynamic leadership role at the City of Houston," says Reichert in a news release. "Her breadth of knowledge in sustainability, climate, and the energy transition, and her expertise in regulatory and stakeholder aspects of the energy industry, will be incredibly valuable to our team and community."

Under her leadership at the city of Houston, Cottingham was the chief author of Houston's Climate Action Plan, an initiative aimed at reducing greenhouse gas emissions in Houston, and getting the city to a point where it meets the Paris Agreement goal of carbon neutrality by 2050. Cottingham helped the city move to 100 percent renewable electricity, according to the release, and helped turn a 240-acre landfill into the nation's largest urban solar farm.

"In leading the Climate Action Plan, Lara helped spark Houston's leadership in what has become a global energy transition and was a passionate advocate for climate action in Houston," says Houston Mayor Sylvester Turner in the release. "While she will be missed, this new role will only strengthen our partnership with Greentown. I look forward to working with Emily, Lara, and the Greentown team to meet our climate goals and make Houston the energy capital of the future."

Before her work at the city, Cottingham worked at Hill+Knowlton Strategies' Houston office range of clients across the energy sector. Earlier in her career, she served as communications director for two congressmen in the U.S. House of Representatives. She began her work with the city in 2014.

"In working with Mayor Turner and Climate Mayors across the U.S., I saw how important partnerships are to helping cities decarbonize," says Cottingham in the release. "There is no better partner or place for climate action at work than Greentown Labs. Greentown is 100 percent committed to attracting and nurturing the energy companies of the future and making Houston the energy transition capital of the world. I'm excited to join the team and see how climatetech can help cities reach their climate goals."

Greentown Labs first announced its entrance into the Houston market last summer. The new 40,000-square-foot facility in Midtown across the street from The Ion opened its prototyping and wet lab space, offices, and community gathering areas for about 50 startup companies opened in April. Greentown was founded in 2011 in Somerville, Massachusetts, and has supported more than 400 startups, which have raised more than $1.5 billion in funding.

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