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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Houston family's $20M donation drives neurodegeneration research

big impact

Neurodegeneration is one of the cruelest ways to age, but one Houston family is sharing its wealth to invigorate research with the goal of eradicating diseases like Alzheimer’s.

This month, Laurence Belfer announced that his family, led by oil tycoon Robert Belfer, had donated an additional $20 million to the Belfer Neurodegeneration Consortium, a multi-institutional initiative that targets the study and treatment of Alzheimer’s disease.

This latest sum brings the family’s donations to BNDC to $53.5 million over a little more than a decade. The Belfer family’s recent donation will be matched by institutional philanthropic efforts, meaning BNDC will actually be $40 million richer.

BNDC was formed in 2012 to help scientists gain stronger awareness of neurodegenerative disease biology and its potential treatments. It incorporates not only The University of Texas MD Anderson Cancer Center, but also Baylor College of Medicine, Massachusetts Institute of Technology (MIT) and Icahn School of Medicine at Mount Sinai.

It is the BNDC’s lofty objective to develop five new drugs for Alzheimer’s disease and related disorders over the next 10 years, with two treatments to demonstrate clinical efficacy.

“Our goal is ambitious, but having access to the vast clinical trial expertise at MD Anderson ensures our therapeutics can improve the lives of patients everywhere,” BNDC Executive Director Jim Ray says in a press release. “The key elements for success are in place: a powerful research model, a winning collaborative team and a robust translational pipeline, all in the right place at the right time.”

It may seem out of place that this research is happening at MD Anderson, but scientists are delving into the intersection between cancer and neurological disease through the hospital’s Cancer Neuroscience Program.

“Since the consortium was formed, we have made tremendous progress in our understanding of the molecular and genetic basis of neurodegenerative diseases and in translating those findings into effective targeted drugs and diagnostics for patients,” Ray continues. “Yet, we still have more work to do. Alzheimer's disease is already the most expensive disease in the United States. As our population continues to age, addressing quality-of-life issues and other challenges of treating and living with age-associated diseases must become a priority.”

And for the magnanimous Belfer family, it already is.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes a podcast with the founder of a new venture firm, a former astronaut and recent award recipient, and a health care innovator with fresh funding.

Zach Ellis, founder and managing partner of South Loop Ventures

Zach Ellis explains on the Houston Innovators Podcast that South Loop Ventures plans to invest in promising companies from across the country and bring them into Houston's ecosystem to grow and scale. Photo via LinkedIn

Houston has a lot of the right ingredients for commercialization and scaling up companies, so when Zach Ellis moved to town to stand up a venture capital firm that made investments in diverse founders, he decided to go about it in an innovative way.

South Loop Ventures, which Ellis launched two years ago, invests in pre-seed and seed-stage startups across health care, climatetech, aerospace, sports, and fintech. While the first handful of investments, which have already been made, are into Houston-based companies, Ellis explains on the Houston Innovators Podcast that the firm plans to invest in promising companies from across the country and bring them into Houston's ecosystem to grow and scale.

"Any investor wants to feel like they are looking at the best possible investment opportunities in which to deploy capital," Ellis says on the show. "So that's reason No. 1 to cast your net as widely as possible.

"At the same time, you want to give any investment that you make greatest chances of success," he continues. "The biggest factor of success outside of the team and the capital you give them, is the customers that they can call upon. In bringing targeted companies to Houston or connecting them with Houston, you introduce the opportunity for them to achieve rapid scale and work with world-class partners very efficiently." Read more.


Toby R. Hamilton, founder and CEO of Hamilton Health Box

Dr. Toby Hamilton has secured $10 million to grow his company. Photo via tmc.edu

A Houston company that is working on a value-based model for primary care has fresh funding to support its mission.

Hamilton Health Box announced the completion of a $10 million series A funding round led by 1588 Ventures with participation from Memorial Hermann Health System, Impact Ventures by Johnson & Johnson Foundation, Texas Medical Center Venture Fund, and the Sullivan Brothers.

The company, founded in 2019 by Dr. Toby R. Hamilton, will use the funding to fuel its expansion into rural areas to help assist those living in Health Professional Shortage Areas, or HPSAs. Read more.

Ellen Ochoa, former astronaut and center director at the NASA's Johnson Space Center

Ellen Ochoa was recognized for her leadership at NASA Johnson and for being the first Hispanic woman in space. Photo via NASA

Two astronauts recently received Presidential Medals of Freedom from President Joe Biden for their leadership in space.

Ellen Ochoa, the former center director and astronaut at the NASA's Johnson Space Center in Houston, and Jane Rigby, senior project scientist for NASA’s James Webb Space Telescope, were honored at the White House on May 3.

Ochoa spent 30 years with NASA, which included being the 11th director of JSC, deputy center director of JSC, and director of Flight Crew Operations. She served on the nine-day STS-56 mission aboard the space shuttle Discovery in 1993, and became the first Hispanic woman in space. She flew four more times to space with STS-66, STS-96, STS-110, and more.

“I’m so grateful for all my amazing NASA colleagues who shared my career journey with me,” Ochoa says in a NASA news release. Read more.

Houston health care institutions receive $22M to attract top recruits

coming to Hou

Houston’s Baylor College of Medicine has received a total of $12 million in grants from the Cancer Prevention & Research Institute of Texas to attract two prominent researchers.

The two grants, which are $6 million each, are earmarked for recruitment of Thomas Milner and Radek Skoda. The Cancer Prevention & Research Institute of Texas (CPRIT) announced the grants May 14.

Milner, an expert in photomedicine for surgery and diagnostics, is a professor of surgery and biomedical engineering at the Beckman Laser Institute & Medical Clinic at the University of California, Irvine and the university’s Chao Family Comprehensive Cancer Center

In 2013, Milner was named Inventor of the Year by the University of Texas at Austin. At the time, he was a professor of biomedical engineering at UT. One of his major achievements is co-development of the MasSpec Pen, a handheld device that identifies cancerous tissue within 10 seconds during surgical procedures.

Skoda is a professor of molecular medicine in the Department of Biomedicine at the University of Basel and the University Hospital Basel, both in Switzerland. He specializes in developing treatments for myeloproliferative neoplasms, which are a group of blood diseases including leukemia.

Other recruitment grants provided by the institute to Houston-area organizations are:

  • $4 million for recruitment of Susan Bullman to the University of Texas M.D. Anderson Cancer Center. She was an assistant professor at Seattle’s Fred Hutchinson Cancer Center, where she studied the connection between microbes and cancer.
  • $4 million for recruitment of Oren Rom to the University of Texas M.D. Anderson Cancer Center. Rom is an assistant professor of pathology and translational pathobiology at Louisiana State University Shreveport.
  • Nearly $2 million for recruitment of Lauren Hagler to conduct RNA cancer biology at Texas A&M University. She is a postdoctoral scholar in biochemistry at Stanford University.

The institute also awarded grants to five companies in the Houston area:

  • $4.7 million to 7 Hills Pharma for development of immunotherapies to treat cancer and prevent infectious diseases.
  • $4.5 million to Indapta Therapeutics for the Phase 1 trial of a cell therapy for treatment of multiple myeloma and non-Hodgkin’s lymphoma.
  • $2.75 million to Bectas Therapeutics for development of antibodies and biomarkers to overcome a type of resistance T-cell checkpoint therapy.
  • $2.69 million to MS Pen Technologies for development of technology that differentiates between normal tissue and cancerous tissue during surgery.
  • $2.58 million to Crossbridge Bio for development of an antibody-drug combination to treat certain solid tumors.