Report: Texas remains a top state for Black entrepreneurs

by the numbers

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

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.

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Texas takes a stumble on an annual list that identifies the top states for female founders. Photo via Getty Images

Texas ranks as a top state for female entrepreneurs

women in business

Texas dropped three spots in Merchant Maverick’s annual ranking of the top 10 states for women-led startups.

The Lone Star State landed at No. 5 thanks in part to its robust venture capital environment for women entrepreneurs. Last year, Texas ranked second, up from its No. 6 showing in 2021.

Merchant Maverick, a product comparison site for small businesses, says Texas “boasts the strongest venture capital scene” for women entrepreneurs outside California and the Northeast. The state ranked fourth in that category, with $6.5 billion invested in the past five years.

Other factors favoring Texas include:

Women solely lead 22 percent of all employees working for a business in Texas (No. 4).
Texas lacks a state income tax (tied for No. 1).

However, Texas didn’t fare well in terms of the unemployment rate (No. 36) and the rate of business ownership by women (No. 29). Other Texas data includes:

Average income for women business owners, $52,059 (No. 19).
Early startup survival rate, 81.9 percent (No. 18).

Appearing ahead of Texas in the 2023 ranking are No. 1 Colorado, No. 2 Washington, No. 3 California, and No. 4 Arizona.

Another recent ranking, this one from NorthOne, an online bank catering to small businesses, puts Texas at No. 7 among the 10 best states for women entrepreneurs.

NorthOne says Texas provides “a ton of opportunities” for woman entrepreneurs. For instance, it notches one of the highest numbers of women-owned businesses in the country at 1.4 million, 2.1 percent of which have at least 500 employees.

In this study, Texas is preceded by Colorado at No. 1, Nevada at No. 2, Virginia at No. 3, Maryland at No. 4, Florida at No. 5, and New Mexico at No. 6. The rankings are based on eight metrics, including the percentage of woman-owned businesses and the percentage of women-owned businesses with at least 500 employees.

Contributing to Texas’ better showing on this year's ranking is an increase in female-focused VC investments. Photo via Getty Images

Texas named No. 2 state for women-led startups thanks to increased VC investment

who runs the world?

A more than 120 percent surge in female-focused venture capital investments helped push up Texas’ ranking in an annual study of the best states for women-led startups.

In Merchant Maverick’s 2021 report on the best states for women-led startups, Texas lands at No. 2, up from No. 6 the previous year. Colorado retains its No. 1 ranking from last year. Merchant Maverick judged each state based on several gender-specific metrics, such as VC funding.

Contributing to Texas’ better showing this year is the increase in female-focused VC investments. Merchant Maverick says the state’s five-year total for female-focused VC investments grew from the $365 million reflected in the 2020 report to $814 million in this year’s report. That’s a jump of 123 percent.

The $814 million total puts Texas in fourth place among the states in terms of female-focused VC investments over a five-year span. California leads this category ($6.7 billion), followed by New York ($4.7 billion), and Massachusetts ($1 billion).

The Lone Star State “has cultivated a business-friendly reputation that appears to be attracting a high volume of women-led organizations and startups,” says Merchant Maverick, a product comparison website for small businesses.

The state doesn’t do as well when it comes to average income, according to Merchant Maverick, but with no state income tax, women business owners can expect an average $62,945 yearly income to go further in Texas than it would in most other states.

Across the country, Merchant Maverick says that thanks to rising startup hubs like Houston, Miami, Phoenix, and Boulder, Colorado, “more funding opportunities are available to female entrepreneurs than ever before.”

Here are some of the Texas statistics cited in this year’s report:

27 percent of businesses with employees are led by women, putting Texas at No. 13 among the states.
At 1.55 percent, Texas sits at No. 22 for the share of women business owners.
Texas ranks 19th for the average yearly income of women business owners ($62,945).

A new report finds that the Lone Star State is ideal for female entrepreneurs. Photo via Getty Images

Texas named a top state for women-led startups

this one's for the ladies

Who runs the world? According to Merchant Maverick's inaugural Best States for "Women-Led Startups'' study, Texas is a great place for women to be in charge.

The Lone Star state cracked the top 10 on the list, earning a No. 6 spot according to the small business reviews and financial services company, which based the study on eight key statistics about this growing segment of the economy. Colorado (at No. 1), Washington, Virginia, Florida, and Montana were the only states to beat out Texas on the rankings—leading the Merchant Maverick team to conclude that "the part of the country that lies west of the Mississippi is great for startups led by women entrepreneurs."

Women-led startups in Texas received $365 billion in VC funding in the last five years, the report found. This is the seventh largest total among U.S. states. Too, about 20 percent of Texans are employed at woman-led firms, which is the fifth highest percentage among states. Roughly 35 percent of employers in Texas are led by women.

A few other key findings that work in female founders' favor: The startup survival rate in Texas is nearly 80 percent. And a lack of state income tax "doesn't hurt either," the report says.

Still there are shortcomings. On a per capita basis, only 1.27 percent of Texas women run their own business. The average income for self-employed women is also relatively low ranking among states, coming in around $55,907 and landing at 31st among others.

This is not the first time Texas has been lauded as a land of opportunity for women entrepreneurs. A 2019 study named it the best state for business opportunities for women. Houston too has proven to support success for the demographic. The Bayou City was named in separate studies a best city for female entrepreneurs to start a business and to see it grow.

Still, as many findings have concluded, the realities of the pandemic loom for all startups and small business owners. The Merchant Maverick study was careful to add: "The pandemic has changed the economic landscape over the past year, and often for the worse.

"This means that not every metric may be able to accurately gauge how a state might fare amidst the pandemic," the report continues. "To help factor in COVID's impact, we included some metrics that take 2020 into account, but it will be a while until we get a full picture of the pandemic's devastation.""

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West Coast innovation organization unveils new location in Houston suburb to boost Texas tech ecosystem

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Leading innovation platform Plug and Play announced the opening of its new flagship Houston-area location in Sugar Land, which is its fourth location in Texas.

Plug and Play has accelerated over 2,700 startups globally last year with corporate partners that include Dell Technologies, Daikin, Microsoft, LG Chem, Shell, and Mercedes. The company’s portfolio includes PayPal, Dropbox, LendingClub, and Course Hero, with 8 percent of the portfolio valued at over $100 million.

The deal, which facilitated by the Sugar Land Office of Economic Development and Tourism, will bring a new office for the organization to Sugar Land Town Square with leasing and hiring between December and January. The official launch is slated for the first quarter of 2025, and will feature 15 startups announced on Selection Day.

"By expanding to Sugar Land, we’re creating a space where startups can access resources, build partnerships, and scale rapidly,” VP Growth Strategy at Plug and Play Sherif Saadawi says in a news release. “This location will help fuel Texas' innovation ecosystem, providing entrepreneurs with the tools and networks they need to drive real-world impact and contribute to the state’s technological and economic growth."

Plug and Play plans to hire four full-time equivalent employees and accelerate two startup batches per year. The focus will be on “smart cities,” which include energy, health, transportation, and mobility sectors. One Sugar Land City representative will serve as a board member.

“We are excited to welcome Plug and Play to Sugar Land,” Mayor of Sugar Land Joe Zimmerma adds. “This investment will help us connect with corporate contacts and experts in startups and businesses that would take us many years to reach on our own. It allows us to create a presence, attract investments and jobs to the city, and hopefully become a base of operations for some of these high-growth companies.”

The organization originally entered the Houston market in 2019 and now has locations in Bryan/College Station, Frisco, and Cedar Park in Texas.

Uniquely Houston event to convene innovation experts across aerospace, energy, and medicine

guest column

Every year, Houston's legacy industries — energy, medicine, and aerospace — come together to share innovative ideas and collaborate on future opportunities.

For the eighteenth year in a row, the annual Pumps & Pipes event will showcase and explore convergence innovation and common technology themes across Houston’s three major industries. The hosting organization, also called Pumps & Pipes, was established in 2007 in Houston and is dedicated to fostering collaboration amongst the city's three major industries.

With NASA in its backyard, the world’s largest medical center, and a reputation as the “Energy Capital of the World,” Houston is uniquely positioned to lead in cross-industry convergence innovation and is reflected in the theme of this year’s event – Blueprint Houston: Converge and Innovate.

Here's what you can expect to explore at the event, which will take place this year on December 9 at TMC Helix Park. Tickets are available online.

The state of Texas’ aerospace investments

How are the recent strategic investments in aerospace by the State of Texas transforming the space economy and driving growth in adjacent industries? What is the case for cultivating a more dynamic and vibrant aerospace R&D environment?

These are the key questions explored in the opening session of Pumps & Pipes, moderated by David Alexander (Director, Rice Space Institute). Joining the discussion are distinguished leaders Norman Garza, Jr., Executive Director of the Texas Space Commission (TSC); as well as two members of the TSC board of directors: Sarah “Sassie” Duggelby, CEO/Co-Founder of Venus Aerospace; and Kathryn Lueders, GM at Starbase, SpaceX.

This panel will spotlight Texas’ critical role in shaping the future of aerospace, with a focus on its cross-sector impact, from space exploration to innovation in energy and health care. We’ll explore how the state’s investments are fueling research and development, creating economic opportunities, and fostering a more interconnected, high-tech ecosystem for the future.

Real-world applications of robotics and synthetic biology

Explore the groundbreaking intersection of syntheticbiology and robotics as they reshape industries from aerospace to energy to health care. Experts from academia and industry — Rob Ambrose of Texas A&M University, Shankar Nadarajah of ExxonMobil, Shalini Yadav of the Rice Synthetic Biology Institute, and Moji Karimi of Cemvita — will discuss the real-world applications and future possibilities of these two fields, including innovative uses of robotics and drones to monitor emissions from deep-sea oil rigs, and synthetic microbes that convert carbon dioxide into valuable chemical products.

Discover how synthetic biology and robotics are paving the way for a more sustainable, autonomous, efficient, and interconnected future.

The total artificial heart – a uniquely Houston story

Heart failure affects millions globally, yet only a small fraction of patients receive life-saving heart transplants. The Total Artificial Heart (TAH), developed by BiVACOR, offers a revolutionary solution for patients with severe heart failure who are ineligible for a transplant.

Luminary leader, Dr. Billy Cohn, will discuss the groundbreaking BiVACOR TAH, a device that fully replaces the function of the heart using a magnetically levitated rotary pump. This innovative approach is part of an FDA-approved first-in-human study, aiming to evaluate its use as a bridge-to-transplant for patients awaiting heart transplants.

Moderated by Dr. Alan Lumsden (Chair Dept. of CV Surgery at Houston Methodist Hospital), join Dr. Cohn as he shares insights, and the story-behind, this pioneering technology and its potential to reshape the future of heart failure treatment, offering new hope to thousands of patients in need.

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Stuart Corr is the director of Innovation Systems Engineering at Houston Methodist and executive director of Pumps & Pipes.

Houston schools shine on annual ranking of top institutions for 2025

best in class

Several Houston elementary and middle schools are at the top of the class when it comes to educating and preparing the next generation for a successful life and career, according to U.S. News & World Report's just-released list of 2025 Elementary and Middle Schools Rankings.

One such school – T.H. Rogers School in Houston ISD – is the No. 8 best middle school in Texas for 2025.

U.S. News ranked over 79,000 public schools on the state and district level using data from the U.S. Department of Education. Schools were analyzed based on their students' proficiencies in mathematics and reading/language arts on state assessments, and tie-breakers were decided based on student-teacher ratios.

Texas' best middle schools for 2025

Three Houston middle schools achieved spots among the top 10 best Texas middle schools for 2025, according to U.S. News.

T.H. Rogers School has a total enrollment of 1,063 students, with 87 percent of the student population scoring "at or above the proficient level" in mathematics, and 90 percent proficiency in reading. The school has a student-teacher ratio of 17:1, with 62 full-time teachers.

T.H. Rogers School also topped the district-wide list as the No. 1 best middle school in HISD.

Houston Gateway Academy - Coral Campus also ranked among the statewide top 10, coming in at No. 9 with a total enrollment of 914 students. U.S. News says 82 percent of HGA students are proficient in math, and 80 percent are proficient in reading.

"Houston Gateway Academy - Coral Campus did better in math and better in reading in this metric compared with students across the state," U.S. News said in the school's profile. "In Texas, 51 percent of students tested at or above the proficient level for reading, and 41 percent tested at or above that level for math."

Right behind HGA to round out the top 10 best Texas middle schools is Houston ISD's Briarmeadow Charter School. This middle school has 600 students, 69 percent of which are proficient in math and 74 percent are proficient reading.

Briarmeadow's student-teacher ratio is 16:1, which is better than the district-wide student-teacher ratio, and it employs 38 full-time teachers.

U.S. News also ranked Briarmeadow as the second best middle school in Houston ISD.

Six additional Houston-area schools ranked among the top 25 best middle schools in Texas, including:

No. 18 – Cornerstone Academy, Spring Branch ISD
No. 19 – Mandarin Immersion Magnet School, Houston ISD
No. 21 – Smith Middle School, Cypress-Fairbanks ISD
No. 22 – Seven Lakes Junior High, Katy ISD
No. 23 – Houston Gateway Academy
No. 25 – Beckendorff Junior High, Katy ISD

The best elementary schools in Texas
Jesus A. Kawas Elementary school in Laredo was crowned the No. 1 elementary school in Texas for 2025, while two Houston-area schools made it into the top 10.Tomball ISD's Creekside Forest Elementary in The Woodlands is the No. 7 best elementary school statewide, boasting 656 students, 42 full-time teachers, and one full-time counselor. Students at this school, which U.S. News designates is situated in a "fringe rural setting," scored 90 percent efficiency in math and 94 percent efficiency in reading.Following one spot behind Creekside Forest in the statewide ranking is Sugar Land's Commonwealth Elementary School in Fort Bend ISD, coming in at No. 8. Commonwealth has a student population of 954 with 55 full-time teachers, and two full-time counselors. The school's student-teacher ratio is 17:1, and 90 percent of students are proficient in math, and 94 percent in reading.U.S. News says student success at Commonwealth is significantly higher than the rest of Fort Bend ISD."In Fort Bend Independent School District, 59 percent of students tested at or above the proficient level for reading, and 47 percent tested at or above that level for math," U.S. News said in Commonwealth's profile. "Commonwealth Elementary [also] did better in math and better in reading in this metric compared with students across the state."Other Houston-area schools that were ranked among the 25 best in Texas are:

No. 13 – Bess Campbell Elementary, Sugar Land, Lamar CISD
No. 20 – West University Elementary, Houston ISD
No. 23 – T.H. Rogers School, Houston ISD
No. 25 – Griffin Elementary, Katy ISD

"The 2025 Best Elementary and Middle Schools rankings offer parents a way to evaluate how schools are providing a high-quality education and preparing students for future success," said LaMont Jones, Ed.D., the managing editor for Education at U.S. News. "The data empowers families and communities to advocate for their children’s education. Research continues to indicate that how students perform academically at these early grade levels is a big factor in their success in high school and beyond."