bayou city brag

Houston earns top spot on list of top regions for minority-owned startups

New study shows Houston has minority-owned startups than any other Texas city. Photo by Tim Leviston/Getty Images

Both Houston and the state of Texas earned high rankings on a recent study by Self Financial that looked at the percentage of minority-owned startups in regions across the U.S.

"Today there are nearly 170 thousand minority-owned startups in the U.S., employing over 700 thousand people and generating close to $100 billion in annual revenue," the report said. "Based on demographic trends, these numbers are likely to grow as the population continues to diversify on racial and ethnic lines."

According to the report, about 30 percent of startups in Greater Houston are minority-owned. This is the fifth highest percentage in the country. There are nearly 5,600 minority-owned startups in the MSA, employing more than 22,700 people and bringing in more than $3.1 billion annually, the report found.

The Bayou City outranked New York but just a tenth of a percentage. But neighboring San Antonio edged out the Bayou City for the No. 4 spot, with roughly 31 percent of startups being minority-owned.

The top three cities on the list were all in California. The San Jose-Sunnyvale-Santa Clara metro had the highest percentage of minority-owned start ups. Roughly 46 percentage of startups there are minority-owned. The Los Angeles area and San Bernardino area followed in the second and third spots, respectively.

Dallas was the only other Texas metro to make the cut. According to the study, roughly 24 percent of startups there are minority-owned, earning it a No. 9 spot on the list.

The state earned a No. 4 spot on the state-level ranking. According to the report, nearly 27 percent of startups in Texas are minority-owned and are responsible for employing more than 87,000 individuals and turn out roughly $11.5 billion in sales annually.

Still, Self Financial argues that minorities are underrepresented in the startup economy in cities, states, and throughout the U.S.

"Non-Hispanic whites, who represent around 60 percent of the U.S. population, own nearly 80 percent of the nation's startup businesses," the report says.

In Houston, nearly 64 percent of the population is considered a minority. And yet, those individuals only represent about 30 percent of startup ownership. Even in top-ranked San Jose the gap is wide. The population in the metro has a 68 percent minority share, and only 46 percent of startups are minority-owned.

St. Louis had the narrowest margin among large, high-rated metros. Minorities represent about 26 percent of the population there, and 25 percent go startups in the city are minority-owned.

In Texas minorities represent about 59 percent of the population, but only 27 percent of startup ownership. Nationwide minorities represent about 40 percent of the population but own about 20 percent of startups, according to the study..

Nationally minorities are most represented in the start-up economy in the accommodation, food services, and retail sectors. And the report adds that the demographic has faced exceptional challenges in 2020—from a business perspective, the largest roadblock was (and is often) access to capital.

"Minority households have lower pre-existing levels of wealth and savings to put towards a new business, while banks and other creditors are less likely to approve loans for Black or Hispanic small-business owners than they are for white business owners," the report says. "Without upfront capital to invest in a growing business, minority entrepreneurs struggle to run and scale their operations.

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Building Houston

 
 

"The Soccer Innovation Institute presents the ultimate opportunity to redefine the player and fan experience, and develop a lasting legacy for the long-term benefit of the FIFA World Cup." Photo via Paul Duron/Wikipedia

Houston is kicking up its 2026 FIFA World Cup bid by a notch or two with a new innovative initiative.

The Houston 2026 World Cup Bid Committee on October 14 committed to establishing the nonprofit Soccer Innovation Institute if Houston becomes a host city for the FIFA World Cup.

"The institute will rely on Houston's spirit of innovation to create a united community investment in building a legacy that goes well beyond the city," according to a news release announcing the potential formation of the nonprofit.

The soccer institute, made up of a network of experts and leaders from various global organizations, would conduct specialized think tanks and would support a series of community programs.

"As the energy capital of the world, the global leader in medicine, the universal headquarters for NASA, and the home to numerous sports tech companies, Houston has an abundance of resources that are unmatched by other cities," Houston billionaire John Arnold, chairman of the 2026 bid committee, says in a news release. "By bringing these organizations together under one umbrella, the Soccer Innovation Institute presents the ultimate opportunity to redefine the player and fan experience, and develop a lasting legacy for the long-term benefit of the FIFA World Cup."

Houston Mayor Sylvester Turner says the institute would align with the city's efforts to build a strong ecosystem for innovation, along with its passion for soccer.

"Houston is recognized as a leader in technology and innovation. We have many innovation hubs around the city that bring bright minds into collaborative spaces where the whole is greater than the sum of the parts," the mayor says.

Held every four years, the World Cup assembles national men's soccer teams from around the world in one of the most planet's most watched sporting events. The traditional 32-team tournament will expand to 48 teams in 2026. After 2026, the World Cup might be staged every two years.

Among those collaborating on the Houston 2026 bid are NRG, the Texas Medical Center, Shell, Chevron, the U.S. Soccer Foundation, the Council for Responsible Sport, the Houston Dynamo, the Houston Dash, the City of Houston, Harris County, and Houston First.

The FIFA World Cup 2026 will be played in 16 cities across the U.S., Mexico, and Canada. Houston and Dallas are among the 17 cities vying to become a U.S. host. A final decision is expected in the first half of 2022. If Houston is selected, it will host six World Cup games at NRG Stadium.

Between October 21 and November 1, World Cup delegates will visit eight cities in the running to be North American hosts: Houston, Dallas, Kansas City, Cincinnati, Denver, San Francisco, Seattle, and Monterrey, Mexico.

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