Houston improves ranking among best U.S. cities to start a business

Business News

Houston jumped four spots to No. 34 this year. Photo via Getty Images

Houston's reputation for being an entrepreneurial and business powerhouse was confirmed in WalletHub's new list of the "Best Large Cities to Start a Business" in 2025. The Energy Capital of the World moved up four spots this year and ranked No. 34 nationwide.

The annual report ranked 100 U.S. cities based on 19 metrics across three main categories: business environment, access to resources, and costs. Factors considered in the report include five-year business survival rates, job growth comparisons from 2019 and 2023, office space affordability, and more.

The sunny Florida city of Orlando (No. 1) topped the list as the best large city for starting a business this year.

Houston's business climate has improved slightly since 2024, when the city previously ranked No. 38.

Houston performed the best in the national business environment category, ranking No. 33 out of all 100 cities in the report. It fell behind in the categories for "business costs" and "access to resources" ranking No. 50 and No. 65, respectively.

"Starting a business can be very scary, considering one in every five startups doesn’t make it past the first year," said WalletHub analyst Chip Lupo. "That’s why it’s especially important to live in a city that provides an environment where new businesses can thrive, with enough capital, workers and customers to keep it going long-term."

Elsewhere in Texas
Austin was the only Texas city to rank among the top 10 best big cities to start a business in 2025, climbing up into the No. 3 spot.

"Businesses that are currently in Austin are thriving, as the city has a very high growth rate in the number of small businesses," the report said. "It also has the best employment growth in the country, which makes it more likely that new businesses will be able to find employees."

Dallas-Fort Worth had the greatest concentration of cities on the list, contributing six out of 13 total Texas cities, and all of them among the top 50: Fort Worth (No. 11), Arlington (No. 15), Dallas (No. 16), Irving (No. 22), Garland (No. 29), and Plano (No. 43).

Other large Texas cities that were named among the best places to start a business in 2025 include Lubbock (No. 33), Laredo (No. 44), San Antonio (No. 64), El Paso (No. 67), and Corpus Christi (No. 70).

The top 10 best large cities to start a business in 2025 are:

  • No. 1 – Orlando, Florida
  • No. 2 – Tampa, Florida
  • No. 3 – Austin, Texas
  • No. 4 – Jacksonville, Florida
  • No. 5 – Miami, Florida
  • No. 6 – St. Petersburg, Florida
  • No. 7 – Boise, Idaho
  • No. 8 – Atlanta, Georgia
  • No. 9 – Raleigh, North Carolina
  • No. 10 – Hialeah, Florida
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A version of this story originally appeared on our sister site, CultureMap.com.

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The Sugar Land Office of Economic Development and Tourism arranged financial incentives and financing options for the new headquarters. Photo via sugarlandecodev.com

Houston company moves to suburb for $4M new HQ

headed southwest

Frazer, a manufacturer of emergency vehicles, is shifting its headquarters from Houston to Sugar Land — a move that will bring 286 jobs to the Fort Bend County suburb.

The company plans to invest $4 million in its new headquarters, a two-story, 23-year-old facility that it’s leasing from CVH Capital Partners. The previous tenant was Thermo Fisher Scientific. The building, at 1410 Gillingham Ln., encompasses 150,000 square feet.

Frazer’s current headquarters is at 7219 Rampart St., near the intersection of Bissonnet Street and Renwick Drive.

“Being just minutes outside of Houston, Sugar Land has always been on our radar,” Laura Griffin, CEO of Frazer, says in a news release. “It’s home to a growing business environment, a robust workforce, and reliable infrastructure. It’s an ideal destination for us to grow and serve our customers.”

The Sugar Land Office of Economic Development and Tourism arranged financial incentives and financing options for the new headquarters.

“We are committed to boosting our business community and empowering our workforce by fostering business relationships,” says Elizabeth Huff, executive director of the economic development office. “Frazer’s expansion is proof of our success in this endeavor.”

Frazer, founded in 1956, makes and sells mobile clinics, mobile stroke units, and ambulances for fire departments and emergency services providers. Houston-area customers include Texas Children’s Hospital, UTHealth Houston, the Bellaire Fire Department, the Harris County Hospital District, the Houston Fire Department, and the Montgomery County Hospital District.

Houston ranks No. 2 in Texas and 4th nationwide. Photo via Getty Images

Houston is the 4th best U.S. city for Black professionals, report finds

Black History Month

In acknowledgement of Black History Month 2024, a new report compiled by Black employees at online rental marketplace Apartment List has ranked Houston the No. 4 best U.S. city for Black professionals.

Apartment List reviewed 76 cities across four major categories to determine the rankings: community and representation; economic opportunity; housing opportunity; and business environment.

Houston earned a score of 63.01 out of a total 100 points, making it the second-highest-ranked city in Texas for Black professionals, behind San Antonio (No. 3).

The city earned top-10 rankings in three out of the four main categories:

  • No. 3 – Business environment
  • No. 4 – Community and representation
  • No. 10 – Economic opportunity
  • No. 21 – Housing opportunity

Houston is commended for its strong Black business environment and economy, but there is some room for improvement when it comes to housing. Similarly to Apartment List's 2022 report – which also placed Houston at No. 4 – a little less than half (44 percent) of all Black Houston households are spending over 30 percent of their income on housing, which has increased two percent since 2019.

Houston has a larger Black population than San Antonio, at 19 percent, but its Black population share is overall lower than other cities in the top 10.

"Furthermore, the community is well-represented in some critical occupations: 20 percent of teachers are Black, as are 21 percent of doctors," the report said. "Houston is also home to the HBCU Texas Southern University, helping a job market when the median Black income is several thousand dollars above average."

Houston also has the highest rate of Black-owned businesses in the entire state, at 18 percent.

"From the Mitochondria Gallery to Ten Skyncare and Wisdom’s Vegan Bakery, Houston has it all!" the report said.

Here's how Houston stacked up in other metrics:

  • Black homeownership: 42 percent
  • Black lawyers: 14 percent
  • Black managers: 14 percent

Elsewhere in Texas
Texas cities dominated the overall top 10. San Antonio ranked just above Houston, with Dallas (No. 6) and Austin (No. 7) not too far behind.

San Antonio came in less than 2.5 points ahead of Houston with a total score of 65.44 points. The report praised San Antonio's scores across its economic opportunity (No. 2), housing opportunity (No. 7), and community and representation (No. 10). The city ranked No. 20 for its Black business environment.

But like Houston, San Antonio also fell behind in its Black homeownership rates, according to the study.

"While the Black homeownership rate is higher than average at 44 percent, the homeownership gap (Black homeownership rate - non-Black homeownership rate) quite low at -19 percent," the report's author wrote. "Perhaps this could be explained by San Antonio’s overall homeownership rate, which is also lower than the state’s average. Additionally, the lower homeownership gap could explain the cost burden rate also being lower than average at 41 percent."

The top 10 cities for Black professionals are:

  • No. 1 – Washington, D.C.
  • No. 2 – Atlanta, Georgia
  • No. 3 – San Antonio, Texas
  • No. 4 – Houston, Texas
  • No. 5 – Palm Bay, Florida
  • No. 6 – Dallas, Texas
  • No. 7 – Austin, Texas
  • No. 8 – Colorado Springs, Colorado
  • No. 9 – Lakeland, Florida
  • No. 10 – Charlotte, North Carolina
The full report and its methodology can be found on apartmentlist.com.

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This article originally ran on CultureMap.

Houston's history in oil and gas — as well as its momentum in the energy transition space — helped the city claim the top spot in this new report ranking. Photo via Getty Images

New report ranks Houston as the top city for foreign investment

by the numbers

For the second time, a report has analyzed the top markets in the United States for the rest of the world to do business in. This year, that top spot belongs to Houston.

The second annual FT-Nikkei Investing in America ranking, which came out this week from the Financial Times and international financial newspaper Nikkei, put the Bayou City — and six other Texas cities — at the top portion of the ranking. Houston's at No. 1, up four spots from last year, but Austin and four cities in the Dallas area also claim spots in the top 20.

The report looked at four dozen metrics, including workforce and talent, quality of life, openness, business environment, investment trends, and more.

In addition to the ranking, the Financial Times dove a little deeper into what made Houston a standout this year, interviewing many of Houston's most prominent business community members. The article points to the city's storied past as an oil and gas leader, also calling out its busy airports and global shipping ports, as well as its medical technology and aerospace industries. But one of the biggest factors in Houston's business climates success is its opportunity within the energy transition.

“We’re clear in Houston that if we’re going to continue to have prosperity — to the degree to define prosperity as job growth and wealth creation — it’s going to need to come from places other than the incumbent energy business,” Bobby Tudor, chief executive of Artemis Energy Partners, tells FT in the article.

Houston scored an overall 73 out of 100, and its scores across metrics in the report include:

  • Workforce and talent: 68/100
  • Openness: 80/100
  • Business environment: 64/100
  • Foreign business needs: 100/100
  • Quality of life: 47/100
  • Investment trends: 73/100
  • Aftercare: 69/100
Last year's top city was Miami, which ranks at No. 6 this year. Most of the top 10 cities in this year's report represent major gains on the ranking.This report falls in line with others in terms of noticing a change within the green economy in Houston. Earlier this year, personal finance website SmartAsset ranked the Houston metro area as the fifth best place in the U.S. for green jobs, which pay an average of 21 percent more than other jobs. The SmartAsset study found that 2.23 percent of workers in the Houston area hold down jobs classified as “green.”

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This article originally ran on EnergyCapital.

Texas, once again, has been named a top city for starting a business. Photo via Getty Images

Texas ranks among best states to start a business

We're no. 3

For years, Texas has been lauded for its business climate being welcoming for new businesses and startups. This year's study shows that the Lone Star State has yet again made the list.

Texas ranked as the third best state to start a business in personal finance website WalletHub's recent list, 2023's Best & Worst States to Start a Business, with a score of 56.85 points. Texas ranked behind Utah, No. 1, and Florida, No. 2, and just ahead of Colorado. Idaho, Georgia, Arizona, Nevada, Oklahoma, and California make up the rest of the top 10, respectively.

The study looked at 27 key indicators of startup success across all 50 states. Texas was recognized for these factors in particular:

  • No. 10 – average growth in number of small businesses
  • No. 30 – labor costs
  • No. 10 – availability of human capital
  • No. 4 – average length of work week (in hours)
  • No. 14 – cost of living
  • No. 13 – industry variety
  • No. 31 – percentage of residents who are fully vaccinated against COVID-19
Source: WalletHub


Richard Ryffel, professor of finance practice at Washington University in St. Louis, noted the importance of policy in making a state a good place to start a business..

"Established businesses looking to expand might expand or relocate entirely based on the relative favorability of the local business climate," Ryffel says. "Recently, Texas, for example, has been the beneficiary of some significant business relocations based on its business-friendly policies."

The methodology of the study focused on three key dimensions — business environment, access to resources, and business costs — and 27 relevant metrics. Each metric was graded on a 100-point scale, and then each state’s average across all metrics was used to calculate its overall score.

In 2021, Texas ranked in the top position of WalletHub's study. Last year, the personal finance website looked at which cities were ideal spots for business launching. The report found that Georgetown as the best small city in Texas for starting a business.

Houston suburbs didn't manage to crack the top 200, but four were recognized amongst the rest of the best small business towns, according to the study:

  • Texas City , No. 202
  • Baytown, No. 267
  • Deer Park, No. 362
  • Conroe, No. 369
When it came to big cities, Houston ranked as No. 35.
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Houston startup debuts bio-based 'leather' fashion collection in Milan

sustainable fashion

Earlier this month, Houston-based Rheom Materials and India’s conscious design studio Econock unveiled a collaborative capsule collection that signaled more than just a product launch.

Hosted at Lineapelle—long considered the global epicenter of the world's premier leather supply chain—in the vaulted exhibition halls of Rho-Fiera Milano, the collection centered around Rheom’s 91 percent bio-based leather alternative, Shorai.

It was a bold move, one that shifted sustainability from a concept discussed in panel sessions to garments that buyers could touch and wear.

The collection featured a bomber-style jacket, an asymmetrical skirt and a suite of accessories—all fabricated from Shorai.

The standout piece, a sculptural jacket featuring a funnel neck and dual-zip closure, was designed for movement, challenging assumptions about performance limitations in bio-based materials. The design of the asymmetrical skirt was drawn from Indian armored warrior traditions, according to Rheom, with biodegradable corozo fasteners.

Built as a modular wardrobe rather than isolated pieces, the collection reflects a shared belief between Rheom and Econock in designing objects that adapt to daily life, according to the companies.

The collection was born out of a new partnership between Rheom and Econock, focused on bringing biobased materials to the market. According to Rheom, the partnership solves a problem that has stalled the adoption of many next-gen textiles: supply chain friction.

While Rheom focuses on engineering scalable bio-based materials, New Delhi-based Econock brings the complementary design and manufacturing ecosystem that integrates artisans, circular materials and production expertise to translate the innovative material into finished goods.

"This partnership removes one of the biggest barriers brands face when adopting next-generation materials,” Megan Beck, Rheom’s director of product, shared in a news release. “By reducing friction across the supply chain, Rheom can connect brands directly with manufacturers who already know how to work with Shorai, making the transition to more sustainable materials far more accessible.”

Sanyam Kapur, advisor of growth and impact at Econock, added: “Our partnership with Rheom Materials represents the benchmark of responsible design where next-gen materials meet craft, creativity, and real-world scalability.”

Rheom, formerly known as Bucha Bio, has developed Shorai, a sustainable leather alternative that can be used for apparel, accessories, car interiors and more; and Benree, an alternative to plastic without the carbon footprint. In 2025, Rheom was a finalist for Startup of the Year in the Houston Innovation Awards.

Shorai is already used by fashion lines like Wuxly and LuckyNelly, according to Rheom. The company scaled production of the sugar-based material last year and says it is now produced in rolls that brands can take to market with the right manufacturer.

Houston startup debuts leather alternative fashion collection in Milan

Houston clean energy co. secures $100M to deploy tech on global scale

Going Global

Houston-based Utility Global has raised $100 million in an ongoing Series D round to globally deploy its decarbonization technology at an industrial scale.

The round was led by Ara Partners and APG Asset, according to a news release. Utility plans to use the funding to expand manufacturing, grow its teams and support its commercial developments and partnerships.

“This financing marks a critical step in Utility’s transition from a proven technology to full-scale global commercial execution,” Parker Meeks, CEO and president of Utility Global, said in the release. “Industrial customers are no longer looking for pilots or promises; they need deployable solutions that work within existing assets and deliver true economic industrial decarbonization today that is operationally reliable and highly scalable. Utility’s technology produces both economic clean hydrogen and capture-ready CO2 streams, and this capital enables us to scale and deploy that impact globally with speed, discipline, and rigor.”

Utility Global's H2Gen technology produces low-cost, clean hydrogen from water and industrial off-gases without requiring electricity. It's designed to integrate into existing industrial infrastructure in hard-to-abate assets in the steel, refining, petrochemical, chemical, low-carbon fuels, and upstream oil and gas sectors.

“Utility is tackling one of the most difficult challenges in the energy transition: decarbonizing hard‑to‑abate industrial sectors,” Cory Steffek, partner at Ara Partners and Utility Global board chair, said in the release. “What sets Utility apart is its ability to compete head‑to‑head with conventional fossil‑based solutions on cost and reliability, even as it materially reduces emissions. With this new funding, Utility is well-positioned for its next chapter of commercial growth while maintaining the technical excellence and capital discipline that have defined its development to date.”

Utility Global reached several major milestones in 2025. After closing a $53 million Series C, the company agreed to develop at least one decarbonization facility at an ArcelorMittal steel plant in Brazil. It also signed a strategic partnership with California-based Kyocera International Inc. to scale global manufacturing of its H2Gen electrochemical cells.

The company also partnered with Maas Energy Works, another California company, to develop a commercial project integrating Maas’ dairy biogas systems with H2Gen to produce economical, clean hydrogen.

"These projects were never intended to stand alone. They anchor a deep and growing pipeline of commercial projects now in development globally across steel, refining, chemicals, biogas and other hard-to-abate sectors worldwide, Meeks shared in a 2025 year-in-review note. He added that 2026 would be a year of "focused acceleration to scale."

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This article originally appeared on EnergyCapitalHTX.com.

Houston Methodist awarded $4M grant to recruit head of Neal Cancer Center

new hire

Armed with a $4 million state grant, the Houston Methodist Academic Institute has recruited a renowned expert in ovarian and endometrial cancer research to lead the Dr. Mary and Ron Neal Cancer Center.

The grant, provided by the Cancer Prevention and Research Institute of Texas, enabled the institute to lure Dr. Daniela Matei away from Northwestern University’s Feinberg School of Medicine in Chicago. There, she is the Diana Princess of Wales Professor in Cancer Research and chief of the Division of Reproductive Science in Medicine.

Matei will succeed Dr. Jenny Chang, who was hired last year to run the Houston Methodist Academic Institute.

At the Neal Cancer Center, located in the Texas Medical Center complex, oncologists work on innovations in cancer research, treatment, and technology. The center opened in 2021 after the Neals donated $25 million to expand Houston Methodist’s cancer research capabilities. It handles about 7,000 new cases each year involving more than two dozen types of cancer.

U.S. News & World Report puts Houston Methodist Hospital at No. 19 among the country’s best hospitals for cancer care, two spots below Chicago’s Northwestern Memorial Hospital. The University of Texas MD Anderson Cancer Center in Houston sits at No. 1 on the list.

Matei’s research related to ovarian and endometrial cancer holds the potential to benefit tens of thousands of American women. The American Cancer Society estimates:

  • 21,010 women in the U.S. will be diagnosed with ovarian cancer, and 12,450 women will die from it.
  • 68,270 women in the U.S. will be diagnosed with endometrial cancer, and 14,450 women will die from it.

Matei is leaving Northwestern in the wake of widespread cuts in federal funding for medical research. The National Institutes of Health (NIH) has canceled or frozen tens of millions of dollars in grants for Northwestern, the Wall Street Journal reports, and the university has been plugging the gaps with its own money.

“The university is totally keeping us on life support,” Matei told the newspaper last year. “The big question is for how long they can do this.”

According to the Wall Street Journal, Matei’s $5 million NIH grant supporting 69 cancer trials has been caught up in the federal funding chaos, so Northwestern stepped in to cover trial expenses such as nurses’ salaries and diagnostic procedures.

Trial participants include some patients with rare, incurable tumors who are undergoing experimental treatments aligned with the genetics of their condition, the newspaper says.

“It’s certainly a life-and-death situation for cancer patients on these trials,” Matei said in 2025.

Matei is among the beneficiaries of more than $15 million in grants approved February 18 by CPRIT’s board. The grants went toward recruiting five cancer researchers to institutions in Texas.

One of those grants, totaling $1.5 million, went to the University of Houston to recruit Akash Gupta, a research scientist at MIT’s Koch Institute for Integrative Cancer Research. The remaining grants went to recruit scientists to The University of Texas at Dallas and The University of Texas Southwestern Medical Center.
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