Innovative Houston program that combines engineering, medicine to graduate inaugural class

first in class

The EnMed program is housed out of the Texas A&M University System's new Discovery Tower in the Texas Medical Center. Image via Facebook/TAMU EnMEd

Priya Arunachalam knew that she had a calling to heal, but she also has a mind for solving problems. After earning a B.S. in biomedical engineering and an MBA in healthcare management and entrepreneurship from Johns Hopkins University, the Austin native applied to medical schools knowing that her trajectory would be working as “a doctor-plus,” as she puts it.

Fortunately, a new program that combined the powers of Houston Methodist and Texas A&M University was recruiting its first graduating class. The School of Engineering Medicine allows students to simultaneously earn both a medical doctorate and a master of engineering degree in four years. It was the perfect fit.

On May 19, she will be among the 22 first students to earn those degrees. Five of them are staying on at Houston Methodist and Arunachalam is one of them.

“I am doing a general surgery residency at Houston Methodist. I am leaning towards transplant,” Arunachalam tells InnovationMap.

It’s no easy task to become a member of the EnMed program, as it’s informally known. Classes are capped at just 50 students a year, says Dr. Timothy Boone, director of education at Houston Methodist Academic Institute. He says that in the four years since EnMed launched, the size and diversity of the applicant pool has continued to grow, but it’s a very specific type of student they’re looking for.

Students must have an undergraduate degree in engineering, for one. That, Boone says, attracts problem solvers who also want to practice medicine.

“If you just think of it as a job, you’re in it for the wrong reasons,” he says.

Throughout their four years of education, students put their problem solving to the test. As they learn about medicine, the students see issues at a patient level and come up with engineering solutions.

One of Arunachalam’s creations in her time in EnMed was a redesigned hospital gown that allows for exams despite being less exposed in the back. She’s currently trying to pilot them at Houston Methodist Hospital.

Boone also mentions an ophthalmology student who has gained a preliminary patent on a design for a chair that accommodates more body types than those currently being used by most doctors. Another group of students created Go Baby Go, a toy car specifically designed for children with significant mobility impairment.

EnMed isn’t Houston Methodist’s only innovative collaboration. The University of St. Thomas Cameron School of Business joins forces with Houston Methodist to offer a master in clinical translation management program to teach students how to turn their ideas into thriving companies.

With Arunachalam’s business background, one might have expected her to follow such a path. But she says she prefers to create solutions and “find the right teams to take those ideas forward.”

Instead, her future is in surgery, which she says, is its own kind of engineering.

“I think they’re very similar," she says. "In engineering, we take apart a problem and put it back together a little better. In surgery you have a system that is malfunctioning and we have to find novel ways to fix it.”

And her and her classmates’ novel discoveries will soon be helping countless patients.

The EnMed program is graduating its first class this week. Photo via HoustonMethodist.org

Houston Methodist's Roberta Schwartz and Texas A&M University's Dr. Roderic Pettigrew shared their thought leadership at a recent panel for Houston Tech Rodeo. Photos courtesy

2 Houston experts explain what's next in health care innovation — from tech to workforce development

Houston innovators podcast episode 124

The medical field is full of problems to solve — how to improve patient care, new diseases to treat, extending but also improving quality of life, and so much more. It's an industry that needs innovation — and in many cases, that means introducing new technologies and ideas.

At last week's Houston Tech Rodeo health tech saloon, two experts weighed in on the discussion. Roberta Schwartz, chief innovation officer of Houston Methodist, and Dr. Roderic Pettigrew, dean of the Intercollegiate School of Engineering Medicine at Texas A&M University, discussed how they view the health care industry's future — and what they are doing to make sure future health care providers and innovators are ready.

“You want the next generation to get equally as excited about what’s happening in that world (of health tech) and realize how much opportunity there is to disrupt the field of health care,” Schwartz says on the panel. “It’s so natural to us at Houston Methodist to say, ‘please come along and see the opportunities there are and seize them.’”

The panelists noted on where the conversation was taking place — TAMU's new EnMed building, which was constructed and dedicated to engineering medical students. Dr. Pettigrew says the new field is meant to train problem solvers.

“When you consider scientific progress throughout history and in the future, you realize that technological innovation is the engine of scientific progress,” he says. “When you think about what profession in our society solves problems for the benefit of society, it’s engineering."

The full panel recording is available on this week's Houston Innovators Podcast. Listen to it below — or wherever you stream your podcasts — and subscribe for weekly episodes.



Photo courtesy of Houston Methodist

Health care innovators joined Houston Methodist and Texas A&M University's ENMED program to discuss women in health care innovation and venture capital investment. Photo courtesy of Houston Methodist

Overheard: Houston experts discuss women in med tech, insight from investors, and more

Eavesdropping in Houston

Houston's health innovation community is making strides every day toward greater quality of care and technology adoption — but what challenges is the industry facing these days?

Through a partnership between Houston Methodist and Texas A&M University's ENMED program at Houston Tech Rodeo, health innovators weighed in on topics surrounding the industry, including biases and investment opportunities.

Missed the conversation? Here are seven key moments from the panels that took place at A&M's new ENMED building in the Texas Medical Center on Thursday, March 3.

“When I look at learning and understanding the priorities — how to take care of patients and also enable those who are doing that work, that’s part of understanding the culture and learning because in the 40 years that I’ve been in the industry, it’s never been the same. There are always things that continue to present challenges from unexpected places.”

​— Ayse McCracken, founder of Ignite Healthcare Network, says on the "Four Fierce Females" panel, referencing the rate of tech disruption and how new technologies, medicine, etc. can change the health care industry and practitioners need to find ways to keep up and stay ahead of the curve.

“Whenever you experience biases, what can you do? You can lean into the fact that we are in a position to help educate and make a change. And that’s going to look different for every one of us, but lean into that instead of feeling down by it.”

— Samantha Lewis, principal at Mercury Fund, says on the "Four Fierce Females" panel, explaining that women across industries should lean into being a change agent when met with bias in the workplace.

“The reason I feel so passionate is (I’m always thinking,) ‘What more can we be doing for our community? What’s working well and what’s not working well,' so I can take that back and make positive changes in our organization.”

— Michelle Stansbury, vice president of innovation and IT applications at Houston Methodist, says on the "Four Fierce Females" panel, explaining that when she's on the other side of the equation as a patient, she really considers her experience and how it could be better.

“Every time you raise money you’re telling a story. You have to figure out what adds value to that story. … I think health care is tricky too because people getting into it aren’t necessarily aware of how complex it is.”

— Dan Watkins, venture partner and co-founder at Mercury Fund, says on the "Where’s My Money At?" investor panel, adding how important it is to investors that founders have specific information — market potential, road map, etc. — when pitching to VCs.

“As a health care startup founder and CEO, you have to wear so many different hats — especially if you’re talking about diagnostics and medical devices. It starts in the science, moves to engineering, and then winds up being commercial. To expect someone to be an expert at all those fields is very difficult.”

— Tim Marx, venture partner at Baird Capital, says on the "Where’s My Money At?" investor panel, adding that, “That’s why we look for the CEOs who really understand where they are, where they’re going, and what they need.”

“One of the things we really appreciate when we engage with founders, it’s not about ‘here’s why my company is great.’ It’s more about understanding the questions your business needs to answer. … If you think about that, that’s what we want to fund. We want to invest in the vision, opportunity, and the people, but we want to fund the — the roadmap — that usually comes with being thoughtful about the questions you’re trying to answer.”

— John Reale, venture lead at TMC Venture Fund, says on the "Where’s My Money At?" investor panel, adding "That's where we get energized."

“The idea to attract talent that’s already built great companies across the US and the world to come here, hire here, and grow here — that’s starting to actually pay off. One of the things that’s big about Houston is it’s really gritty — it’s very ‘show me the data and prove it to me first.’ … We’re having those proven points.”

— Emily Reiser, associate director of innovation at the Texas Medical Center , says on the "Where’s My Money At?" investor panel about the work TMC is doing with its accelerator program.

It's pay day for several Houston-area research teams thanks to two grant programs. Photo via Getty Images

Several Houston-area life science research teams receive thousands in grants

research roundup

Several health innovation research teams across Houston are celebrating fresh funds to go toward the development of breakthrough technologies and research projects.

In InnovationMap's latest roundup of research news, check out who received this crucial funding and how their research and work can change the standard of care across the life science industry.

Reliant doles out $100,000 to two Houston Methodist critical care physician-scientists

Reliant announced that the recipients of the Reliant Innovation Fund will be two individuals within Houston Methodist Center for Critical Care in collaboration with Texas A&M's Engineering Medicine (EnMed) program.

"Meaningful innovation is core to us at Reliant and the work these institutions, physicians and students are doing is truly amazing," says Elizabeth Killinger, president of Reliant, in a news release. "We appreciate how Houston Methodist is making a lasting difference in our community by continuing to revolutionize medicine and we are honored to support them through the EnMed program."

Dr. Hina Faisal and Dr. Asma Zainab — along with the EnMed students who will support their work — will use the funds to advance their work. An anesthesiologist and critical care physician, Faisal will lead a project on 3-D-simulated virtual reality technology to prevent delirium in critically ill patients. Zainab, who specializes in cardiovascular ICU and focuses on respiratory failure and ventilator use, will lead a project to help personalize care in lung failure, creating models specific to each patient to avoid unnecessary pressure and injury caused by ventilators, per the release.

"Innovation is at the heart of what we do," says Dr. Faisal Masud, director of the Center of Critical Care at Houston Methodist, in the release. "Thanks to Reliant's generous contribution and ongoing support, we are able to seek out new ways to provide the best quality care for our most vulnerable patients while supporting our physicians, our students and their research."

Researchers at Rice University and Texas Medical Center institutions snag grants

Six research teams have received funding from Rice University's Educational and Research Initiatives for Collaborative Health, known as ENRICH. Established in 2016, the program focuses on connecting Rice faculty with TMC institutions to encourage collaboration. Last year, more than a fifth of Rice faculty were engaged in active collaborations with TMC research partners, according to a news release.

"Partnerships with TMC are an institutional priority, and they enable our faculty to translate their research to clinical practice, directly benefiting the Houston community," says Marcia O'Malley, special advisor to the provost on ENRICH and the Thomas Michael Panos Family Professor in Mechanical Engineering, in the release. "ENRICH has been instrumental in facilitating faculty engagement with TMC partners, reducing barriers to collaboration and investing institutional resources in new partnerships."

The Provost's TMC Collaborator Fund awarded $60,000 in grants to:

  • Jason Hafner '98, professor of physics and astronomy at Rice, and Carly Filgueira '09, assistant professor of nanomedicine and cardiovascular surgery at Houston Methodist Research Institute, to explore the development of an optical sensor for clinical detection of cholesterol.
  • Lan Li, assistant professor of history at Rice; Ricardo Ernesto Nuila, associate professor of medicine, medical ethics and health policy at Baylor College of Medicine; and Fady Joudah, a poet, literary translator and physician at Baylor St. Luke's Medical Center, for a pilot study of community health care access that addresses larger questions about medical racism in Houston.
  • Oleg Igoshin, professor of bioengineering at Rice, and Anna Konovalova, assistant professor of microbiology and molecular genetics at the University of Texas Health Science Center at Houston's McGovern Medical School, to explore new targets for antibiotic treatment by probing the feedback loop between two important stress-response pathways in bacteria.
Additionally, Rice ENRICH and Baylor's Interdisciplinary Surgical Technology and Innovation Center (INSTINCT) awarded $60,000 in grants to:
  • Pulickel Ajayan, the Benjamin M. and Mary Greenwood Anderson Professor in Engineering and chair of Rice's Department of Materials Science and Nanoengineering, and Crystal Shin, assistant professor of surgery at Baylor, for development of a self-charging, wireless microsensor capable of detecting changes in flow in blood vessels that have been replaced in heart bypass surgery.
  • Meng Li, Noah Harding Assistant Professor in Statistics at Rice, and Gabriel Loor, associate professor of surgery at Baylor, to study inflammation following lung transplantation and search for the cause of inflammatory responses that differ between men and women.
  • Vaibhav Unhelkar, assistant professor of computer science at Rice, and James Suliburk, associate professor of surgery at Baylor, to explore how artificial intelligence can augment surgical training.


Reliant and Aramco Americas have provided Houston Methodist funds to move forward pertinent research and opportunities. Courtesy of Methodist Hospital/Facebook

2 corporations write checks to go toward Houston hospital's COVID-19 efforts

money moves

Two Houston companies have doled out cash to a Houston hospital's efforts in driving innovation during the pandemic as well as moving forward in a post-COVID-19 world.

Houston Methodist received $500,000 from Houston-based Aramco Americas and $130,000 from Houston-based Reliant. Aramco's gift will go toward funding ongoing research on convalescent plasma therapy as a treatment for COVID-19 and Reliant's donation will create the Reliant Innovation Fund.

"The challenges that we have and will continue to face with the COVID-19 pandemic amplifies the need for fresh ideas to combat this disease and treat those who have been affected," says Dr. Faisal Masud, medical director of the Center for Critical Care at Houston Methodist Hospital, in a news release from Reliant. "Innovating is at the core of what we do at Houston Methodist, and this generous gift from Reliant will make a difference for patients both now and for years to come."

According to the release, $100,000 will go toward supporting students in the Texas A&M University's Engineering Medicine program, which combines engineering and medical courses to allow for students to receive a master's in engineering and a medical degree in four years. Currently, A&M is renovating a building in the Texas Medical Center that will be the future home of the program.

"The EnMed program is educating a new type of physician — one with an engineering background and a forward-thinking, innovative medical mindset. Reliant's partnership and donation will allow our students to innovate for the dynamic needs on today's clinical front lines," says Dr. Timothy Boone, director of the Houston Methodist Education Institute and Associate Texas A&M Dean, in the release.

The other $30,000 of Reliant's gift will go towards expanding the hospital's patient-centric mobile app, CareSense, which Houston Methodist has used to connect with COVID-19 patients after they have left the hospital.

Aramco's donation will be used to support Houston Methodist's plasma research on COVID-19 treatment. The hospital was the first academic medical center in the United States to get FDA approval for this type of treatment on COVID-19 patients.

"Convalescent plasma therapy has been effective in other infectious diseases and our physician-scientists are working to develop it into a first-line treatment for COVID-19," says Dr. Dirk Sostman, president at the Houston Methodist Academic Institute, in a news release from Aramco.

The treatment collects blood from recovered COVID-19 patients and infuses the plasma into currently ill COVID-19 patients in hopes that the recovered patient's plasma can provide the antibodies for the ill patient to fight off the disease.

"Houston Methodist Hospital is a world-leader in healthcare as well as research and development," says Mohammad S. Alshammari, president and CEO of Aramco Americas in the release. "Our donation is an opportunity to support the innovative work occurring there in support of the Houston community and to contribute to long-term medical solutions for this global health crisis."

Texas A&M University is planning a three-building project to bring parking, housing, retail, and more to the Texas Medical Center. Photo courtesy of Texas A&M University System

Texas A&M University reveals plans for $546M medical complex in Houston

coming soon

Texas A&M University has announced a new three-building project in the Texas Medical Center that will bring a renovated space for its Engineering Medicine program, student housing, parking, retail, and more.

The $546 million complex will be funded in part by a public-private partnership, according to a news release from the university. The project includes one 18-story building to be purchased and renovated for $145 million, and an additional $401 million will go toward constructing two new buildings.

"The Board of Regents of the Texas A&M University System recognized an opportunity in Houston to help Texans and contribute more to the global medical community," says Elaine Mendoza, chairman of the Board of Regents of the Texas A&M University System, in the news release. "We are eager and fortunate to further enhance the world's greatest medical center through this endeavor."

The first of the three buildings to debut will be the EnMed renovation project at 1020 Holcombe Blvd. This project, which had previously been announced, is expected to deliver by this summer and should be monumental for the already successful program, says Bob Harvey, president and CEO of the Greater Houston Partnership, in a statement.

"Texas A&M's EnMed program fits right into what we are doing in Houston," Harvey says. "Our city has long been recognized as a destination for world-class health care and cutting-edge research, thanks to the incredible institutions in the Texas Medical Center. Houston is also becoming known as an attractive location for both mature and emerging life science and biotech companies. We are, indeed, becoming the 'third coast' for life sciences."

A&M TMCThe first of the three buildings is expected to be complete this summer. Photo courtesy of Texas A&M University System

The two new construction buildings will be paid for through public-private partnerships. The student housing building, a 19-story building planned to have 572 units with 704 beds in a 365,000 square-foot space, will be completed by June 2022, according to the release. The building will also include a 3,444-spot parking garage. Students from A&M campuses will get priority housing, but students at other institutions will also be allowed spots if available.

"We saw a need for student housing and medical offices in Houston. Plus, our EnMed students needed the facilities to create the latest medical devices," says Greg Hartman, a vice chancellor at Texas A&M University System and interim senior vice president of the Texas A&M Health Science Center, in a news release. "So, we began the process of expanding the Texas A&M footprint in Houston and I believe the work done by Aggies in Houston will be life-changing for a lot of people."

The third component of the plans includes a 587,000-square-foot, 30-floor Integrated Medical Plaza — another public-private partnership — and it has a June 2023 expected completion. Thirteen of the stories will be parking, and 72,000 square feet of space will be for retail use, while 8,700 square feet will be green space.

According to the release, the developer for the two new construction projects is Houston-based Medistar Corp., which is run by CEO Monzer Hourani. New York-basedAmerican Triple I Partners is on the financing team and was founded by Henry Cisneros, a Texas A&M alumnus.

Representatives from both the school and the city see the potential impact of the complex for medical innovations.

"Last year, Houston had its best year ever in terms of attracting venture capital to the region," Harvey says in his statement on the news. "This program and this facility will provide one more reason for major VCs to give Houston's innovative companies a look – and for talented students, researchers, and entrepreneurs to make Houston their home."

Dr. M Katherine Banks, who serves the university of vice chancellor of engineering and national laboratories at the Texas A&M System, notes in the release how the EnMed program has set up its students for breakthrough medical device innovation.

"I expect to see transformative ideas generated by Texas A&M's broadened presence in Houston," says Dr. Banks in the release.

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5 Houston deep tech startups pushing the boundaries of their industries

meet the finalists

Houston has long been at the forefront of innovation, from NASA’s Johnson Space Center to its startup ecosystem using technology to disrupt industries.

As part of the 2026 Houston Innovation Awards, our Deep Tech Business category will honor an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics and space sectors.

Five deep tech companies have been named finalists for the 2026 award.

Read more about these businesses, their founders and their breakthrough technologies below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Casimir

Battery tech startup Casimir develops semiconductor chips that produce continuous electrical power straight from the quantum vacuum, without the need for a battery, cord or external charge source. The company is targeting commercialization for its first-generation MicroSparc chip by 2028.

Harold “Sonny” White founded Casimir in 2023 after nearly two decades at NASA. The company emerged from stealth with a $12 million seed round in 2026. It was also awarded an STTR Phase I contract from the U.S. Space Force's SpaceWERX to support the development of the company's solid-state generator for potential use by the Department of the Air Force earlier this year.

FocisAI

Artificial intelligence startup FocisAI helps refinery owner-operators unlock actionable insights from 3D scans and images.

FocisAI was founded by CEO Tyler Wooten, COO Colin Snell and CTO Kyle Snell in 2026. It is a member of Greentown Labs and launched a seed round in September, which is expected to close by the end of the year, according to the company's application. It has rolled out 10 pilot programs and is looking to move into recurring, facility-scale deployments and scale its team in Houston this year.

Machine Saver Inc.

Industrial tech startup Machine Saver Inc. builds wireless and wired vibration and proximity sensors to tell heavy industry when a machine is about to fail. The company's technology runs on an 8-plus-year battery life and helps operators reduce downtime, improve maintenance and extend equipment life.

Machine Saver was founded by CEO Colton Bach and Quentin Bach in 2013. Its customers and partners include Houston Methodist, Blue Bell, Genemco, as well as energy and heavy industry, food and beverage, and cold chain companies, according to its application. The company is raising a Series A.

Square Robot

Energytech startup Square Robot develops and operates submersible inspection robotics that inspect aboveground storage tanks while they remain in service. The robots reduce downtime and costs, improve worker safety and limit hydrocarbon emissions.

Square Robot launched its Houston office in 2019 and closed a Series B in 2025. It plans to complete its first U.S. Navy demonstrator tank in November and is also developing real-time inspection software.

Venus Aerospace

Spacetech company Venus Aerospace is developing a high-thrust rotating detonation rocket engine (RDRE) that replaces the subsonic combustion used in conventional rocket engines. The RDRE is a compact, simpler engine that can deliver up to 15 percent greater efficiency for defense and space applications. It completed its first U.S. flight test of the engine last summer.

Venus Aerospace was founded in 2020 by CEO Cassie Duggleby and CTO Andrew Duggleby. It raised a $20 million Series A in 2022 and $42 million Series A2 in 2025. It closed a $91 million Series B earlier this year and expanded its leadership team. The company is working toward longer-duration and higher-thrust testing and advancing its flight program.

Houston leads U.S. with the biggest surge in millionaire renters

Rent Report

The number of millionaire renters and homeowners in the U.S. has surged over the last five years, and Houston has soared ahead of the rest with the largest growth rate among these affluent renter households.

Houston leads the nation with the No. 1 increase in millionaire renters from 2020 to 2024, a new RentCafe study found. The number of these wealthy households increased from 18 to 232 over the last five years, representing a 1,189 percent growth rate.

"The pandemic accelerated the shift as remote work pushed the wealthy to relocate to lower-tax metros like Houston, where millionaire renters grew 13-fold, versus 3.9-fold for owners," the report said. "Granted, 232 households is still a tiny fraction of the Houston metro’s roughly 2.7 million households, but the growth rate far outpaces any other major metro."

Nationwide, the number of millionaire renter households grew 229 percent from 2020 to 2024, outpacing the 193 percent growth rate among millionaire homeowners.

Dallas was the only other Texas metro to crack the top 10. The number of millionaire renter households in North Texas has more than quintupled, from just 30 in 2020 to 165 in 2024. That represents a growth rate of 450 percent, which — surprisingly — is only the eighth highest nationwide.

But when it comes to the largest populations of millionaire renters, New York City and San Francisco still lead the way. New York claimed the No. 1 spot with nearly 7,300 millionaire renters living in the city in 2024. Houston ranked 12th on that list.

Elsewhere in Texas, Austin and Dallas ranked as the 16th and 17th, respectively, for the largest population of millionaire renters. There were 206 millionaire renters living in Austin in 2024, and 165 in Dallas.

This is who the typical millionaire renter is
The report also revealed a surprising statistic about the typical millionaire renter in the U.S. — a lot of them are millennials working in "white-collar, high-earning fields."

"Nearly half (49 percent) of millionaire renters are Millennials, and the number of affluent Millennial renter households surged 392 percent during the five-year period," the report said. "Gen X follows with 33 percent of millionaire Gen X households renting after increasing by 147 percent."

The report continued, "Although Gen Z still represents a small share of millionaire renters (just 2 percent of the total), no generation has expanded faster: Gen Z millionaire renter households leaped from fewer than a dozen to more than 400 — a tiny cohort today, but one that was virtually nonexistent five years ago."

The top three most common professions for millionaire renters are chief executives, software developers, and managers, the report additionally found. In Houston, the surge of wealthy newcomers are mostly executives, professional athletes, and entertainers.

"These roles tend to generate steady, substantial income without necessarily tying workers to one location, making renting a practical fit, rather than a financial necessity," the report said.

Hotspots for millionaire homeowners
In RentCafe's separate list comparing the top 10 most popular U.S. metros for millionaire homeowners, Houston ranked 12th nationally with 4,374 millioniare homeowners living in the metro as of 2024. These wealthy Houstonians are most likely working as chief executives, physicians, managers, and lawyers and judges.

Houston has already proven to be a hotspot for millennial homebuyers, and the latest RentCafe data says millennials make up 19 percent of all millionaire homeowners in the U.S. Gen Xers and Baby Boomers still maintain the largest shares of millionaire homeowners nationwide, at 45 and 33 percent, respectively.

Dallas (No. 10) and Austin (No. 20) also appeared among the hottest metros for millionaire homeowners.

Only one Texas city appeared among RentCafe's list of the 20 fastest-growing metros for millionaire homeowners: College Station ranked 13th nationwide with a growth rate of 1,329 percent. From 2020-2024, the number of millionaire homeowners residing in College Station grew from 14 to 200.

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This article originally appeared on CultureMap.com.

Houston ranks high on best cities for small-business expansion report

business growth

For small businesses looking to expand, Houston might be the right place.

Among 56 major U.S. metros, Houston grabbed the No. 6 spot on a new list of the metros boasting the strongest environments for small-business expansion.

A 2025 report from the state comptroller’s office showed roughly 970,000 small businesses operate in the 13-county Gulf Coast region. The region includes the majority of the Houston metro area.

“Whether it’s a family-owned shop on Main Street or a fast-growing startup, small businesses power our state’s economic engine, create opportunity, and strengthen the character of every Texas community,” Kelly Hancock, who was interim state comptroller when the report was released, said in a press release.

Business lending platform Clarify Capital analyzed five factors to develop the list: job growth, business entry and exit, net job creation, and unemployment.

Overall, the Nashville area claimed the No. 1 spot on the list. Other major Texas metros also cracked the top 10, including Austin at No. 3 and Dallas-Fort Worth at No. 7.

“The highest-ranking metros combine labor-market momentum with steady business formation and relatively favorable local employment conditions,” Clarity Capital says.

The Houston metro ranked sixth for job growth, 11th for business entry rate, 38th for business exit rate, second for net job creation rate, and 50th for unemployment rate.

“For business owners, the ranking is a starting point rather than a guarantee,” Clarify Capital says. “Local demand, competition, operating costs, and access to capital still shape whether an expansion works.”

“Building enough cash-flow room for hiring, equipment, and unexpected expenses can help small and midsize business owners take advantage of a strong market without stretching the business too thin,” the company adds.

Of course, money fuels small-business expansion in the Houston area or anywhere else.

According to an analysis of SBA loan data by feasibility consulting firm MMCG, the Houston metro area saw 1,685 approvals for 7(a) loans and 101 approvals of 504 loans in the federal government’s 2025 budget year. The approval numbers for both loan categories increased from the previous year.

Altogether, the 7(a) and 505 loans exceeded $1 billion.

The data from the U.S. Small Business Administration suggests small-business expansion may be on the rise in the Houston area.

Further potential evidence of small-business expansion in the Houston area: The region experienced a 92 percent rise in account applications from 2024 to 2025 submitted to Bluevine, a small-business banking platform. The Houston metro ranked fifth for the number of Bluevine small-business applications in 2025.

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