by the numbers

Houston makes top 10 list for major metros based on startup growth

A new report finds both Houston and Texas rank highly based on startup creation. Photo by Tim Leviston/Getty Images

Houston is a bustling hub for startup activity — and the numbers don't lie.

A new ranking from real estate investment marketplace Roofstock places Houston at No. 10 among the major U.S. metro areas with the highest rates of startup formation. Roofstock's ranking, based on data from the U.S. Census Bureau, puts the Houston area's startup formation rate at 9.48 percent. The startup formation rate refers to the number of new businesses in a given year divided by the total number of businesses.

Here's the other Houston startup data cited by Roofstock:

  • Annual number of startup formations: 9,214
  • Annual number of jobs created by startups: 55,475
  • Number of jobs created by startups as a share of all new jobs: 14.44 percent

"In the past years, Houston has seen a massive burst in its startup ecosystem. … Houston is one of the best places in the United States for entrepreneurs to launch and grow a business," Houston-based app developer Bixlabs says.

As a matter of fact, the Houston area's ratio of new business founders to total business founders stood at a healthy 21 percent as of December 2020, according to career website LinkedIn. Houston was sandwiched between Salt Lake City (26 percent) and Dallas-Fort Worth (20 percent). Also in 2020 and 2019, Houston ranked sixth on a list published by residential real estate platform Clever of the most affordable U.S. metros for startups.

"Considering Houston's metro is tied with San Antonio's for the highest average investment in small business, and the proximity to great food, the Gulf of Mexico coast, and attractions like Minute Maid Park and the NASA Space Center, we would definitely suggest considering starting a business here," Clever says.

Two other Texas metros appear on Roofstock's list — Austin at No. 3 (startup formation rate of 10.61 percent) and Dallas-Fort Worth at No. 5 (startup formation rate of 9.82 percent).

Here's the additional data for the Austin metro area:

  • Number of annual startup formations: 3,858
  • Number of annual new jobs created by startups: 21,357
  • Number of jobs created by startups as a share of all new jobs: 16.49 percent

Here's the additional data for the Dallas-Fort Worth metro area:

  • Number of annual startup formations: 10,731
  • Number of annual new jobs created by startups: 69,696
  • Number of jobs created by startups as a share of all new jobs: 15.11 percent

The Las Vegas metro area holds the No. 1 spot on the Roofstock list, with a startup formation rate of 11.44 percent.

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Building Houston

 
 

According to a new report, Houston's workforce isn't among the happiest in the nation. Photo via Getty Images

Call it the Bayou City Blues. A report from job website Lensa ranks Houston third among the U.S. cities with the unhappiest workers.

The report looks at four factors — vacation days taken, hours worked per week, average pay, and overall happiness — to determine the happiest and unhappiest cities for U.S. workers.

Lensa examined data for 30 major cities, including Dallas and San Antonio. Dallas appears at the top of the list of the cities with the unhappiest workers, and San Antonio lands at No. 8.

Minneapolis ranks first among the cities with the happiest workers.

Here's how Houston fared in the four ranking categories:

  • 16.6 million unused vacation days per year.
  • 40.1 average hours worked per week.
  • Median annual pay of $32,251.
  • Happiness score of out of 50.83.

Dallas had 19.4 million unused vacation days per year, 40.5 average hours worked per week, median annual pay of $34,479, and a happiness score of 53.3 out of 100.

Meanwhile, San Antonio had 5.7 million unused vacation days per year, 39.2 average hours worked per week, median annual pay of $25,894, and a happiness score of 48.61.

Texas tops Lensa's list of the states with the unhappiest workers.

"While the Lone Star State had a decent happiness score of 52.56 out of 100, it scored poorly on each of the other factors, with Texans allowing an incredible 67.1 million earned vacation days go to waste over the course of a year," Lensa says.

In terms of general happiness, Houston shows up at No. 123 on WalletHub's most recent list of the happiest U.S. cities. Dallas takes the No. 104 spot, and San Antonio lands at No. 141. Fremont, California, grabs the No. 1 ranking.

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