Black business ownership is growing at the fastest pace in 30 years. Photo via Getty Images

In recent years, our small business community has weathered a global pandemic, persistent supply chain issues, sometimes volatile prices, and a tight labor market—and Black-owned businesses in our state have faced disproportionate impacts from these pandemic challenges.

Despite those headwinds, Black-owned businesses across Texas are fueling one of the largest and most diverse waves of new business creation America has ever seen—what President Biden calls America’s Small Business Boom.

As we mark America’s 48th national celebration of Black History Month, the SBA is highlighting Black-owned businesses’ achievements here in Texas and throughout the nation. The past three years have been the three strongest years of new business formation in American history.

The 16 million new business applications filed during this period show Americans starting businesses at nearly twice the rate—86 percent faster—compared to the pre-2021 average. During that time, U.S. small businesses have created more than 7.2 million net new jobs. And Black-owned businesses are responsible for some of the most significant gains.

The Invest in America agenda is powering the Biden Small Business Boom, and unlike many economic recoveries of the past, this one includes entrepreneurs of color. One of the reasons for that is the SBA’s Community Navigator Pilot Program (CNPP). This innovative hub-and-spoke partnership connected hundreds of community organizations around the country - like the U.S. Black Chambers of Commerce and the National Urban League - with entrepreneurs, helping them make the most of SBA resources. “The SBA CNPP allowed the

Houston Area Urban League Entrepreneurship Center to leverage existing partnerships with organizations that offered services to socially and economically disadvantaged business owners and women-owned businesses,” states Eric Goodie, Executive Vice President of the Houston Area Urban League. “Through the CNPP we provided comprehensive business planning and support, e-commerce technical assistance, financial and credit education, opportunities for business networking, access to capital and procurement opportunities,while providing assistance with obtaining various business certifications. We also found theSBA Lender match portal to be a critical resource in the capital acquisition process."

Under Administrator Isabel Guzman, the SBA has also delivered record-breaking government contracting for small businesses—including the most federal contracting dollars going to Black-owned businesses in history. And we’re addressing longstanding gaps in access to capital for Black entrepreneurs, more than doubling our small business loans toBlack-owned businesses since 2020.

These investments are making a big impact. Black business ownership is growing at the fastest pace in 30 years. The share of Black households owning a business doubled between 2019 and 2022. In 2023 alone, Census data showed Americans filed 5.5 million new business applications across the country, including over 500,000 here in Texas. That success is creating a rising tide. Black wealth is up a record 60 percent from before the pandemic, and Black unemployment has reached historic lows since 2021.

The SBA also understands that the work must continue. Black entrepreneurs and other historically underserved communities still face obstacles accessing capital. That's why President Biden and the SBA are committed to ensuring that anyone with a good idea can pursue that opportunity, and the Small Business Boom speaks to that success. We're helping more Americans than ever access the funds they need to realize their dreams of small business ownership – and that means more jobs, more goods and services, and more resilient communities, no matter the zip code.

To learn more about SBA resources, entrepreneurs are invited to join the SBA Houston District Office as it teams up with the Emancipation Economic Development Council and dynamic community organizations to celebrate Black History Month. The organizations will host the Resources to Empower Entrepreneurs event at the Emancipation Cultural Center on Wednesday, February 28, and will feature discussions surrounding resources, funding, and training available for small business owners.

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Mark Winchester is the SBA Houston District Office's acting district director.

Texas has landed in the No. 8 spot for the best states for Black entrepreneurs. Photo by Christina Morillo/Pexels

Report: Texas remains a top state for Black entrepreneurs

by the numbers

The Lone Star State has again ranked among the top states for Black entrepreneurs, but Texas didn't rank as highly as it did in 2022.

According to Merchant Maverick’s latest annual report on the state of Black businesses, Texas has landed in the No. 8 spot for the best states for Black entrepreneurs. While the state maintains a position in the top 10, Texas has dropped from its No. 3 spot last year.

Guided by metrics including Black-owned businesses per million residents, percentage of the state’s workforce employed by Black-owned businesses, average annual payroll of Black-owned businesses, average annual income of Black business owners, regional price parity, a cost of living indicator, unemployment rate, and Top state income tax bracket rates, the report also noted the following key takeaways:

The Lone Star State is:

  • No. 9 for highest average annual income.
  • Home to 360 Black-owned businesses per capita.
  • No. 15 highest in the nation for percentage of the workforce working for Black businesses.

Black businesses continue to see success all over the state.

The largest Black tech conference in the country, the 2023 AfroTech Conference, recently returned to Austin for the second straight year at the Austin Convention Center. The five-day conference united over 300 companies – including Amazon, Meta, and Google – to expand the representation of Black Americans in STEM fields.

In 2022, a ranking by Black employees at Apartment List put Houston at No. 4 among the best cities for Black professionals. The Apartment List employees judged 82 cities in four categories: Business environment for Black professionals. Houston ranks third. Black community and representation. Houston ranks fourth. Economic opportunities for Black professionals. Houston ranks seventh. Housing opportunities for Black professionals. Houston ranks No. 20.

Growth also was reflected post-pandemic for Black-owned startups in Houston according to study by economists at Rice University, Boston University, Columbia University, and the Massachusetts Institute of Technology (MIT). The study found that from 2019 to 2020, the startup rate rose 32 percent in four largely Black areas of Houston: Kashmere Gardens, Missouri City, South Acres, and Sunnyside. The statewide startup rate during that period was 10 just at percent.

Texas recently landed on another Merchant Maverick report, also dropping a few spots in Merchant Maverick’s annual ranking of the top 10 states for women-led startups. The Lone Star State landed at No. 5 for women-led startups in 2023, down from No. 2 in 2022. Last year, Texas ranked second, up from its No. 6 showing in 2021.
A new report finds that Houston is a top city for Black professionals. Photo via Getty Images

Houston ranked among best metros for Black professionals

inclusive ecosystem

A WalletHub study released in 2021 crowned Houston the most diverse city in the U.S. So it shouldn't really come as a surprise that Bayou City ranks among the country’s best cities for Black professionals.

A new ranking compiled by Black employees at Apartment List puts Houston at No. 4 among the best cities for Black professionals. The Apartment List employees judged 82 cities in four categories:

  • Business environment for Black professionals. Houston ranks third.
  • Black community and representation. Houston ranks fourth.
  • Economic opportunities for Black professionals. Houston ranks seventh.
  • Housing opportunities for Black professionals. Houston ranks 20th.

Apartment List combined the scores in each of those categories to come up with an overall score for each city. Houston’s final score was 63.8, with 100 being the highest possible score. The company released the ranking in conjunction with Black History Month.

Apartment List lauds Houston’s showing in three of the four categories, but dings the city for its relatively low score for housing opportunities. The website points out that 42 percent of black households in Houston spend more than 30 percent of their income on housing.

In praising Houston’s environment for Black professionals, Apartment List cites the city’s large Black population (22.6 percent), its representation in critical occupations (about one-fifth of teachers and doctors are black), and the presence of Texas Southern University, an HBCU. Furthermore, Apartment list notes that a big share of Houston businesses are black-owned.

In 2016, Black Enterprise magazine dubbed Houston the country’s “Next Great Black Business Mecca.”

In a 2019 post on Medium, digital marketer and Los Angeles native Shameen Yakubu placed Houston at No. 2 on his list of the six cities he’d considered moving to as a Black professional. (San Antonio topped his list, and his LinkedIn profile indicates he now lives there.) Yakubu cited Houston’s large Black population, diversity, and affordability as some of the factors in the city’s favor.

“One of the things that [attracts] me to Houston is the number of [Black] professionals and entrepreneurs. Texas, in general, is a very pro-business state,” Yakubu wrote.

Three other Texas cities join Houston in Apartment List’s top 10:

  • San Antonio, No. 3, final score of 66.08.
  • Dallas, No. 5, final score of 60.6.
  • Austin, No. 9 (tie), final score of 57.1.

In descending order, here are the top 10 cities for Black professionals, according to Apartment List:

  • Washington, D.C.
  • Atlanta
  • San Antonio
  • Houston
  • Dallas
  • Raleigh, North Carolina
  • Lakeland, Florida
  • Orlando, Florida
  • Austin (tie)
  • Baltimore (tie)
Denise Hamilton, founder and CEO of WatchHerWork, is publishing a book that helps guide Black Lives Matter allies to make changes that will help them change the world. Photo courtesy of WatchHerWork

Houston entrepreneur tackles diversity and inclusion challenges through new book

HOUSTON INNOVATORS PODCAST EPISODE 39

If you went to school in America, you might have been taught that George Washington's teeth were made out of wood. While this information might have been effective in promoting oral health as a kid, it's important for you to know that George Washington's dentures were not made of wood. They were made of ivory, metal alloys, and other human teeth — usually pulled from slaves.

History seems to have been rewritten in this case, and it's not the first — nor the last — time that's happened. Denise Hamilton wants individuals to recognize moments, acknowledge them, and move forward toward the truth. That's why she's publishing a thoughtful journal entitled "Do Something: An Ally's Guide to Changing Yourself So You Can Change Your World."

"I feel really strongly that we all have these challenging stories in our minds that we have to identify and release," Hamilton shares on this week's episode of the Houston Innovators Podcast. "I give that example so that we all are clear that we don't have the full story for a lot of these topics. To me, if you allow yourself to be humble and be open to the fact that you really cannot believe everything you think, we can make so much progress in this space."

Hamilton founded her company, WatchHerWork, five years ago to act as a platform for women seeking career advice and mentorship.

"I had been an executive for many years — around 25 years at this point — and I had been the only woman or the only African American in so many situations that people wanted to pick my brain or take me to lunch," she says. "Frankly, there weren't enough hours in the day."

The company evolved to more, and now she's focused on diversity and inclusion consulting and leadership.

In the months following the death of George Floyd, Hamilton has seen companies react in various ways to the resurgence of the Black Lives Matter movement with marketing campaigns and initiatives for improving workplace conditions.

"The biggest challenge is the same thing that's the biggest opportunity," she says. "Every company has the opportunity to reinvent their approach to how they handle systemic racism in their organizations, and they are terrified by it."

As Hamilton has seen first hand, companies are navigating a minefield of how to react. In her consulting with companies, Hamilton has advised business leaders to be transparent and recognize if they haven't been an ally in this space — and to not act like it. Disclose the things that are being improved and amplify the work that's already been done — don't reinvent the wheel, she says.

"And if you turn this moment into a marketing event instead of a true seed change, we can spot that a mile away. Lead with authenticity, be sincere, and be honest," she says.

The other ongoing challenge Hamilton is navigating with her work is the effect COVID-19 has had on women in the workplace. The pandemic has amplified existing gender issues in the workplace and created new challenges as well. In the past, female executives have been able to climb the corporate ladder while hiring services to help on the home front, but COVID-19 pulled the rug out from under these women's feet.

"Women are starting to opt out because they are overwhelmed," Hamilton says, adding that this thought terrifies her. "We shouldn't live in a society that penalizes you for having children — that's just the bottom line."

What employers have to realize — and this is a cornerstone of Hamilton's work — is that inclusion in the workplace isn't treating everyone the same. It's factoring everyone's differences.

"I don't want you to treat me the same. I want you to look at my situation and treat me the way I need to be treated based on my situation," she says. "And that can be difficult to navigate, but that's what we help our clients do."

As challenging both the social unrest and pandemic has been, it's an opportunity to move forward and make a difference.

"It's a bittersweet experience when there's lots of change — there's always a lot of opportunity as well," Hamilton says. "Never waste a good crisis."

On the episode, Hamilton shares more details about her forthcoming book, advice for female founders, and more. Listen to the full interview below — or wherever you get your podcasts — and subscribe for weekly episodes.


Black Girl Ventures has launched in Houston. Photo courtesy of Black Girl Ventures

Organization launches Houston chapter to drive investment and social capital for women of color

a seat at the table

Everyone knows the statistics. Female-founded startups receive around 2 percent of the venture capital funding, according to some reports, and when you break that down into women of color receiving funding, it's even less.

A Washington D.C.-based organization is looking to give these women seats at the table with the launch of Black Girl Ventures in Houston. BGV is based in The Cannon locally, and is looking to partner with other Houston organizations to grow its presence.

"Black Girl Ventures is here — not just in Houston but across the country and the globe — to be able to help create social and financial capital for black and brown women," says Sharita M. Humphrey, a Houston financial adviser and team lead for BGV in town.

The organization launched its local chapters — including Houston, Miami, Durham, Philadelphia, and Birmingham —right around the same time this spring to create a huge splash across the country. The organization, which is made up of 31 employees and leaders across the country, focuses on events and programing for female founders of color to prepare them for financial growth — including the networks and know how needed for that process.

"Being an African-American women founder I did see that there was a need for more social and financial capital," Humphrey says. "We have access — especially living here in Texas — to financial capital, but we don't understand how important that social capital is to be able to obtain that financial capital."

The cornerstone event for Houston's BGV is set to be in August. It's a pitch event with a live crowdfunding campaign. The event, which uses SheRaise online to fundraise, has been done for a few years coinciding with SXSW — this year's was done digitally. Now, with the launch of the five markets, each of the new chapters will get to fo their on versions locally.

The event requires the eight companies that will pitch to: be revenue earning, have a black or brown female founder, and be based in the Houston area. The first, second, and third place startups will win prizes, and each of the startups will be able to raise money online through SheRaise. Companies can apply online for the event.

Humphrey says she has big plans for her BGV chapter, including raising $1 million for her Houston members — something she is determined to make happen with the right amount of social capital help and financial coaching.

"When they get to the table with venture capitalists, they'll be ready," she says.

Texas was ranked among the top states for black entrepreneurs. Getty Images

Texas named second-best state for black entrepreneurs

Black history month

In honor of Black History Month, a study was conducted to see which states have the best environment for black entrepreneurs — and Texas rose to the top.

The Lone Star State was ranked No. 2 in the inaugural FitSmallBusiness study, only behind Georgia. Florida, California, and North Carolina rounded out the top five, in that order. The ranking factored in metrics such as start-up growth, cost-of-living, black business success, and social equality.

"Entrepreneurship is the backbone of the American economy and minority-owned businesses are no exception to that fact," says FitSmallBusiness's special projects editor, Michael De Medeiros, in the news release. "With this being the inaugural study, our goal was to focus on the data that paints an overall picture of what the African American entrepreneur faces in the business world."

Breaking down the metrics for the state, Texas ranked No. 4 for three metrics —black business success, startup climate and financial health. However, when it came to social and financial equality — which factored in education, health, mortality rate, etc. — the state ranked No. 17.

The study used reputable reports from the United States Census Bureau, WalletHub, U.S. News & World Report, and more. From these reports, the study found that black-owned firms have grown 34 percent from 2007 to 2012, to now over 2.6 million companies. The top 100 black-owned companies generated $30 billion in 2018, but only 1 percent of venture-backed startup founders were black.

In addition to these metrics, the study also polled over 1,300 U.S. citizens regarding their own experience with black entrepreneurship. When asked about opportunities for black entrepreneurs compared to recent history, over 21 percent of respondents said it was about the same; however, more than half responded that there were somewhat or much more opportunities than before.

"While we weren't surprised by certain findings, some of the state rankings told an interesting story of the unique journeys that African American entrepreneurs have to traverse," De Medeiros continues in the release. "Ultimately, we hope that our continuing work to identify the best states for minority entrepreneurship will lead to new businesses outside of just the most prosperous areas of the U.S."

Austin-based Capital Factory — a startup development and investment organization — in partnership with DivInc, has launched its second annual startup pitch competition for black founders. The application is live now, and the deadline is March 20. Five startups will be invited to pitch on April 14th at Capital Factory's Black in Tech Summit, and one will walk away with a $100,000 investment.

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2 Houston space tech cos. celebrate major tech milestones

big wins

Two Houston aerospace companies — Intuitive Machines and Venus Aerospace — have reached testing milestones for equipment they’re developing.

Intuitive Machines recently completed the first round of “human in the loop” testing for its Moon RACER (Reusable Autonomous Crewed Exploration Rover) lunar terrain vehicle. The company conducted the test at NASA’s Johnson Space Center.

RACER is one of three lunar terrain vehicles being considered by NASA for the space agency’s Artemis initiative, which will send astronauts to the moon.

NASA says human-in-the-loop testing can reveal design flaws and technical problems, and can lead to cost-efficient improvements. In addition, it can elevate the design process from 2D to 3D modeling.

Intuitive Machines says the testing “proved invaluable.” NASA astronauts served as test subjects who provided feedback about the Moon RACER’s functionality.

The Moon RACER, featuring a rechargeable electric battery and a robotic arm, will be able to accommodate two astronauts and more than 880 pounds of cargo. It’s being designed to pull a trailer loaded with more than 1,760 pounds of cargo.

Another Houston company, Venus Aerospace, recently achieved ignition of its VDR2 rocket engine. The engine, being developed in tandem with Ohio-based Velontra — which aims to produce hypersonic planes — combines the functions of a rotating detonation rocket engine with those of a ramjet.

A rotating detonation rocket engine, which isn’t equipped with moving parts, rapidly burns fuel via a supersonic detonation wave, according to the Air Force Research Laboratory. In turn, the engine delivers high performance in a small volume, the lab says. This savings in volume can offer range, speed, and affordability benefits compared with ramjets, rockets, and gas turbines.

A ramjet is a type of “air breathing” jet engine that does not include a rotary engine, according to the SKYbrary electronic database. Instead, it uses the forward motion of the engine to compress incoming air.

A ramjet can’t function at zero airspeed, so it can’t power an aircraft during all phases of flight, according to SKYbrary. Therefore, it must be paired with another kind of propulsion, such as a rotating detonation rocket engine, to enable acceleration at a speed where the ramjet can produce thrust.

“With this successful test and ignition, Venus Aerospace has demonstrated the exceptional ability to start a [ramjet] at takeoff speed, which is revolutionary,” the company says.

Venus Aerospace plans further testing of its engine in 2025.

Venus Aerospace, recently achieved ignition of its VDR2 rocket engine. Photo courtesy of Venus Aerospace

METRO rolls out electric shuttles for downtown Houston commuters

on a roll

The innovative METRO microtransit program will be expanding to the downtown area, the Metropolitan Transit Authority of Harris County announced on Monday.

“Microtransit is a proven solution to get more people where they need to go safely and efficiently,” Houston Mayor John Whitmire said in a statement. “Connected communities are safer communities, and bringing microtransit to Houston builds on my promise for smart, fiscally-sound infrastructure growth.”

The program started in June 2023 when the city’s nonprofit Evolve Houston partnered with the for-profit Ryde company to offer free shuttle service to residents of Second and Third Ward. The shuttles are all-electric and take riders to bus stops, medical buildings, and grocery stores. Essentially, it works as a traditional ride-share service but focuses on multiple passengers in areas where bus access may involve hazards or other obstacles. Riders access the system through the Ride Circuit app.

So far, the microtransit system has made a positive impact in the wards according to METRO. This has led to the current expansion into the downtown area. The system is not designed to replace the standard bus service, but to help riders navigate to it through areas where bus service is more difficult.

“Integrating microtransit into METRO’s public transit system demonstrates a commitment to finding innovative solutions that meet our customers where they are,” said METRO Board Chair Elizabeth Gonzalez Brock. “This on-demand service provides a flexible, easier way to reach METRO buses and rail lines and will grow ridership by solving the first- and last-mile challenges that have hindered people’s ability to choose METRO.”

The City of Houston approved a renewal of the microtransit program in July, authorizing Evolve Houston to spend $1.3 million on it. Some, like council member Letitia Plummer, have questioned whether microtransit is really the future for METRO as the service cuts lines such as the University Corridor.

However, the microtransit system serves clear and longstanding needs in Houston. Getting to and from bus stops in the city with its long blocks, spread-out communities, and fickle pedestrian ways can be difficult, especially for poor or disabled riders. While the bus and rail work fine for longer distances, shorter ones can be underserved.

Even in places like downtown where stops are plentiful, movement between them can still involve walks of a mile or more, and may not serve for short trips.

“Our microtransit service is a game-changer for connecting people, and we are thrilled to launch it in downtown Houston,” said Evolve executive director Casey Brown. “The all-electric, on-demand service complements METRO’s existing fixed-route systems while offering a new solution for short trips. This launch marks an important milestone for our service, and we look forward to introducing additional zones in the new year — improving access to public transit and local destinations.”

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This article originally ran on CultureMap.