Houston ranks high on lists for startup ecosystems and economic growth potential
We're No. 4!
The number four appears to be a sign of good fortune for Houston.
A new ranking from Business Facilities magazine places Bayou City at No. 4 for economic growth potential among large metro areas and at No. 4 for the country's best startup ecosystems.
Regarding the No. 4 ranking for economic potential, Susan Davenport, senior vice president of economic development for the Greater Houston Partnership, says Houston's industrial diversity has helped the region weather downturns in certain economic sectors "and now has us on a solid growth trajectory."
"The region's steady population increases, coupled with our relatively low costs of living and doing business, bode well for our economic growth potential reflected in this ranking," Davenport says.
Houston's status as the one of the top locations for Fortune 1000 headquarters in the U.S. elevates the region's position as a hub where both large and small companies can prosper, she adds.
Houston appeared at No. 1 in Business Facilities' 2018 ranking of the top large metros for economic growth potential. Representatives of Business Facilities couldn't be reached to explain why Houston dropped three places from 2018 to 2019.
Last year, the magazine pointed out that Houston's economy extends far beyond its standing as the Energy Capital of the World.
"The nation's fourth-largest city has a dynamic, diversified economy that is brimming with innovation, technology, and entrepreneurship," said the magazine, citing advantages such as Houston's strong manufacturing base, enormous healthcare presence, and storied aerospace legacy.
The magazine went on to hail Houston's "distinctly favorable business climate."
"The region benefits from a skilled workforce, world-class infrastructure and transportation system, and a pro-business environment that stimulates rather than stifles business growth," Business Facilities noted.
As for the No. 4 ranking in this year's Business Facilities startup category, Davenport says this indicates the recent work of the Houston Exponential initiative to foster the local startup environment is paying off.
Houston Exponential, established in 2017, seeks to make Houston a top 10 innovation ecosystem, generate $2 billion in venture capital annually, and create 10,000 new tech jobs a year by 2022.
Last October, Houston Exponential announced it had collected $25 million for its first venture capital fund. Making financial commitments to the fund were Insperity, Chevron, Shell, Quanta Services, Westlake Chemical, The Plank Cos., PROS, H-E-B, and Camden Property Trust.
"Factor in the demand being satisfied by a number of new incubators and accelerators, plus the four-mile Innovation Corridor running through the heart of the city and anchored by The Ion, and we're seeing momentum on a scale like never before," Davenport says.
In Houston's Midtown, Rice University is transforming the historic Sears building into The Ion, which will serve as an innovation hub designed to cultivate collaboration among startups, corporations, universities, and other elements of the local business community. It's the first development in Houston's evolving innovation district.
"The Midtown innovation district is an embodiment of our shared community vision to give professionals and families a means of seizing opportunity as Houston continues to grow as a leading city in technology," says Matt Thibodeaux, executive director of Midtown Houston.
Here is Business Facilities' 2019 list of the top 10 places for economic growth potential among large U.S. metros:
- Atlanta
- San Antonio
- Phoenix
- Houston
- Orlando, Florida
- Austin
- Raleigh-Durham, North Carolina
- Las Vegas
- Albuquerque, New Mexico
- Kansas City, Missouri
Here is Business Facilities' 2019 list of the 10 places with the best startup ecosystems in the country:
- Austin
- Denver
- New York City
- Houston
- San Jose, California
- Orlando, Florida
- Nashville, Tennessee
- Atlanta
- Raleigh-Durham, North Carolina
- Salt Lake City
