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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Who are Houston's top innovators? Nominate now for 2026 Houston Innovation Awards

Calling All Innovators

Calling all Houston innovators: The 2026 Houston Innovation Awards, presented by InnovationMap, return this fall to celebrate the best and brightest in the Houston innovation ecosystem right now.

We're asking you to nominate Houston's top innovators and startups for this year's awards. Nominations are open now through August 27 and can be made on behalf of yourself, your organization, and other influential leaders in the local innovation scene.

The annual awards program recognizes the most innovative individuals and companies in Houston across 10 prestigious categories.

This year's awards will honor the following categories:

  • Minority-founded Business, honoring an innovative startup founded or co-founded by BIPOC or LGBTQ+ representation.
  • Female-founded Business, honoring an innovative startup founded or co-founded by a woman.
  • Energy Transition Business, honoring an innovative startup providing a solution within renewables, climatetech, clean energy, alternative materials, circular economy, and beyond.
  • Health Tech Business, honoring an innovative startup within the health and medical technology sectors.
  • Deep Tech Business, honoring an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics, and space sectors.
  • Startup of the Year (People's Choice), honoring a startup celebrating a recent milestone or success. The winner will be selected by the community via an interactive voting experience.
  • Scaleup of the Year, honoring an innovative later-stage startup that's recently reached a significant milestone in company growth.
  • Incubator/Accelerator of the Year, honoring a local incubator or accelerator that is championing and fueling the growth of Houston startups.
  • Mentor of the Year, honoring an individual who dedicates their time and expertise to guide and support budding entrepreneurs.
  • Trailblazer, honoring an innovator who's made a lasting impact on the Houston innovation community.

You have three weeks to submit nominees, so don't delay — nominate today at this link or fill out the form below. Qualified nominees will receive a formal application to complete, which will be reviewed by our esteemed panel of judges to determine the finalists and winners.

More announcements about the 2026 Houston Innovation Awards are coming soon, including an introduction to this year's panel of judges. Interested in sponsoring the 2026 Houston Innovation Awards? Please contact sales@innovationmap.com.

KBR unveils name, branding for new government services spinoff

new identity

Houston-based KBR Inc.'s new Mission Technology Solutions unit officially has a name.

The previously announced government services spinoff, which until now has been nicknamed SpinCo, will now be known as Trinzic. The company said in a news release that the name was inspired by the word intrinsic, "reflecting essential, built-in capabilities and deep expertise operating in some of the world’s most complex and mission-critical environments."

New York-based firm Siegel + Gale developed the company's new brand. In addition to the new name, the company shares that its new logo will feature a stylized letter N, with brand colors in orange and gray.

“Trinzic represents who KBR Mission Tech has always been at our core: an essential partner bringing innovation and trusted execution to the missions that matter most,” Stuart Bradie, KBR President and CEO, said in the release. “The new Trinzic brand represents both our strong heritage and the tremendous opportunity ahead. Our teams aim to deliver solutions that address some of the world’s most critical national priorities every day, and this new identity captures the purpose-driven culture and mission focus that we expect to continue to define the company moving forward.”

KBR expects the spin-off to be completed in January 2027. At that time, Trinzic will operate as an independent, publicly traded company that will focus on technology and engineering services for the space and national security sectors.

KBR will remain a separate publicly traded company that will focus on sustainable technology and services to support the energy transition. KBR first announced the spinoff plans in October 2025.

Last month, KBR announced two C-suite hires for Trinzic, or what was then known as SpinCo.

Michael LaRouche will serve as Trinzic's inaugural president and CEO. LaRouche is currently CEO of Serco North America, a Virginia-based government services contractor. Nicholas Veasey, current CFO of Virginia-based MAG Aerospace, was named Trinzic's CFO. Bradie will remain chairman, president and CEO of KBR.

Rice lands $19 million grant to build AI-driven quantum materials lab

Quantum Boost

Rice University has received a $19.9 million award from the National Science Foundation to increase the production of quantum and electronic materials by using a combination of artificial intelligence, cloud-based labs and robotics.

The four-year project will create a remote and automated research platform that aims to accelerate discovery and the testing process, according to Rice. The aptly titled project, "Revolutionizing AI-Driven Autonomous Experimentation for Next-Generation Semiconductor Synthesis” (READINESS), will be led by Rice materials scientist Jun Lou, who serves as principal investigator. SUNY Polytechnic Institute and the University of Texas at Austin will collaborate with Rice on the project.

At first, READINESS will focus on two-dimensional materials, oxide semiconductors and diamond thin films that can support emerging technologies, like quantum devices.

READINESS is one of 20 projects selected for the NSF's Programmable Cloud Laboratories Test Bed initiative, which aims to provide more U.S. researchers with access to automated scientific tools.

Additionally, the project aligns with the Department of Energy’s Genesis Mission, which recently selected four projects from Houston universities and companies, including two from Rice. The national initiative aims to unite government, industry, academia and philanthropy to lead to breakthroughs in energy, scientific discovery and national security.

READINESS will offer more advanced lab systems remotely via a cloud interface to assist startups, other research groups, and companies that don’t have the resources, staffing or equipment to produce quantum materials and advanced electronics. READINESS will also allow researchers to simulate experiments via virtual experiments or digital twins before they conduct the physical experiment.

Rice says this will be particularly useful in quantum materials research, which is often met with barriers— like the adjustments of chemical composition, gas flow, pressure, and temperature—that can change the properties of a material.

“This project will give researchers access to capabilities that have traditionally been available only in a handful of laboratories,” David Sholl, executive vice president for research at Rice, said in a news release. “By lowering those barriers, READINESS can accelerate discovery and expand who can participate in cutting-edge materials research.”

Additionally, the project’s AI aspect will offer recommendations for new tests, recognize safety limits and analyze results to assist researchers.

“Responsible AI should complement researchers’ capabilities rather than replace their judgment,” Luay Nakhleh, Dean of Rice’s George R. Brown School of Engineering and Computing, added in the release. “READINESS embodies this principle by combining automated systems with transparency, safeguards and human oversight at critical decision points.”

READINESS’ lab will be based out of Rice’s Ralph S. O’Connor Building for Engineering and Science. Partner sites will also contribute equipment, expertise and workforce development programs, according to Rice.

Ultimately, READINESS aims to elevate the speed, reliability and reproducibility of experiments, and to promote access to automated scientific tools for U.S. researchers.

“Our goal is to create a laboratory that researchers from across the country can use to produce advanced electronic and quantum materials on demand,” Lou added in the release. “By integrating robotics, AI and digital twins, we aim to learn from every experiment and shorten the pathway from scientific discovery to practical technology.”

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