Houston scores top ranking of best cities for entrepreneurs

easy living

The Bayou City ranks highly thanks to a high quality-of-living score, lack of a state income tax and state capital gains tax, and a state sales tax rate of 6.25 percent. Photo by Natalie Harms/InnovationMap

Houston joins Dallas and Austin in a new ranking of the 10 best U.S. cities for entrepreneurs to live.

Houston appears at No. 7 on the list, compiled by SumUp, which provides payment and banking services for businesses. In part, Bayou City ranks highly thanks to a high quality-of-living score. Houston also fares well due to the lack of a state income tax and state capital gains tax, and a state sales tax rate of 6.25 percent.

Here are the top 10 places in the U.S. for entrepreneurs to live, according to SumUp:

  1. New York City
  2. Chicago
  3. Miami
  4. Los Angeles
  5. Dallas
  6. Austin
  7. Houston
  8. Seattle
  9. Washington, D.C.
  10. Boston

SumUp, based in the United Kingdom, weighed 16 factors to come up with the ranking. These factors included tax rates, number of millionaires, internet speeds, and number of international airports.

Not surprisingly, the ranking factors featured a decidedly British slant. For instance, the ranking took into account Google and TikTok search volumes in the United Kingdom for “Moving to [city name].”

Of course, Houston offers more entrepreneurial advantages than the ones cited by SumUp. For example:

  • Rice University’s Jones Graduate School of Business ranks as the country’s No. 1 graduate entrepreneurship program, according to The Princeton Review and Entrepreneur magazine.
  • The University of Houston’s Cyvia and Melvyn Wolff Center for Entrepreneurship at the C.T. Bauer College of Business ranks as the No. 1 undergraduate entrepreneurship program, according to The Princeton Review and Entrepreneur magazine.
  • The George W. Bush Presidential Center awarded Houston the No. 6 spot on its 2024 ranking of the top U.S. metro areas for university innovation.
  • A 2023 ranking from the LendingTree personal finance website put Houston in 13th place among the U.S. metro areas where minority entrepreneurs are enjoying the most success.
    “Houston’s reputation for entrepreneurship is inextricably linked to the city’s diversity,” the Understanding Houston website notes.

“The growing populations in Houston from diverse backgrounds, namely immigrants and people of color, are not only the economic and cultural driving force for the evolution of our city, but also the future of our country.”

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Texas is the 4th hardest working state in America, report finds

Ranking It

It's no secret that Texans are hardworking people. To align with the Labor Day holiday, a new WalletHub study asserts that the Lone Star State is one of the five most hardworking states in America for 2025.

The report ranked Texas the fourth most hardworking state this year, indicating that its residents are working harder than ever after the state fell into seventh place in 2024. Texas previously ranked No. 4 in 2019 and 2020, slipped into No. 5 in 2021 and 2022, then continued falling into sixth place in 2023. But now the state is making its way back to the top of the list.

WalletHub's analysts compared all 50 states based on "direct" and "indirect" work factors. The six "direct" work factors included each state's average workweek hours, employment rates, the share of households where no adults work, the share of workers leaving vacation time unused, and other data. The four "indirect" work factors consisted of workers' average commute times, the share of workers with multiple jobs, the annual volunteer hours per resident, and the average leisure time spent per day.

North Dakota landed on top as the most hardworking state in America for 2025 for another year in a row, earning a score of 66.17 points out of a possible 100. For comparison, Texas ranked No. 4 with 57.06 points. Alaska (No. 2), South Dakota (No. 3), and Hawaii (No. 5) round out the top five hardest working states.

Across the study's two main categories, Texas ranked No. 5 in the "direct" work factors ranking, and earned a respectable No. 18 rank for its "indirect" work factors.

Broken down further, Texans have the second-longest average workweek hours in America, and they have the 12th best average commute times. Texans have the 6th lowest amount of average leisure time spent per day, the report also found.

According to the study's findings, many Americans nationwide won't take the chance to not work as hard when presented with the opportunity. A 2024 Sorbet PTO report found 33 percent of Americans' paid time off was left unused in 2023.

"While leaving vacation time on the table may seem strange to some people, there are plenty of reasons why workers choose to do so," the report's author wrote. "Some fear that if they take time off they will look less dedicated to the job than other employees, risking a layoff. Others worry about falling behind on their work or are concerned that the normal workflow will not be able to function without them."

The top 10 hardest working states are:

  • No. 1 – North Dakota
  • No. 2 – Alaska
  • No. 3 – South Dakota
  • No. 4 – Texas
  • No. 5 – Hawaii
  • No. 6 – Virginia
  • No. 7 – New Hampshire
  • No. 8 – Wyoming
  • No. 9 – Maryland
  • No. 10 – Nebraska
---

This story originally appeared on CultureMap.com.

Houston co. makes waves in brain health and more innovation news to know

Trending Topics

Editor's note: The top innovation news for the second of half of August includes the Inc. 5000, a big contract from NASA, a new energy accelerator's launch, and innovative brain health treatment. Here are the five most-read InnovationMap stories from August 15-31:

1. How a Houston company is fighting anxiety, insomnia & Alzheimer’s through waveforms

Nexalin develops non-invasive devices that help reset networks in the brain associated with symptoms of anxiety and insomnia. Photo via Getty Images.

A Houston-based company is taking a medicine-free approach to target brain neurologically associated with mental illness. Nexalin Technology’s patented, FDA-cleared frequency-based waveform targets key centers of the midbrain to support the normalization of neurochemicals through a process known as Transcranial Alternating Current Stimulation (tACS). Delivered via a non-invasive device, the treatment gently stimulates the hypothalamus and midbrain, helping to “reset networks associated with symptoms” of anxiety and insomnia. Early clinical evidence suggests this approach can promote healthier brain function and improved sleep. Continue reading.

2. Houston innovation hub announces first cohort for energy-focused accelerator

Alabama-based Accelerate Wind is a member of the COPILOT cohort. Courtesy photo

Energytech Nexus, a Houston-based hub for energy startups, has named its inaugural cohort of 14 companies for the new COPILOT accelerator. The eight-month COPILOT program offers mentorship, training and networking for startups. Program participants will be tasked with developing pilot projects for their innovations. Two Houston startups are members of the first COPILOT class. Continue reading.

3. Houston foundation doles out $700K for Texas chemical research

The Welch Foundation has awarded funding through two of its newest grant programs. Photo via Getty Images.

Houston-based The Welch Foundation has issued $700,000 in additional funding to support chemical research through two of its newest grant programs. The foundation has named the recipients of its Welch eXperimental (WelchX) Collaboration Retreat and Pilot Grants and the Welch Postdoctoral Fellows of the Life Sciences Research Foundation Grants. The WelchX grants were awarded to teams of two Texas researchers who presented "innovative and collaborative ideas" addressing challenges in the clean energy space, according to the foundation. Continue reading.

4. Houston tech company secures $450M NASA contract

Barrios Technology has secured a two-year contract with NASA. Photo via Getty Images.

NASA’s Johnson Space Center awarded Houston-based aerospace technology and engineering services company Barrios Technology the Mission Technical Integration Contract (MTIC). The two-year contract is worth $450 million and will begin Oct. 1, 2025. Barrios will provide technical and management support to some of NASA’s human spaceflight programs, which include the Orion and Gateway programs, the International Space Station (ISS) and possibly more human spaceflight initiatives. Continue reading.

5. Fast-growing Houston tech firm leads dozens of local companies on Inc. 5000

Houston-based Action1 landed at No. 29 nationally and No. 1 in the software category in this year's Inc. 5000 ranking. Photo via Getty Images.

Dozens of Houston-area businesses appear in this year’s Inc. 5000 ranking of the 5,000 fastest-growing private companies in the U.S., with a security software provider capturing the region’s No. 1 spot on the list. Landing at No. 29 nationally and No. 1 in the software category, the top-ranked Houston-area private company is Houston-based Action1. The company recorded median revenue growth of 7,188 percent from 2021 to 2024, according to the Inc. 5000. It’s the first appearance on the Inc. 5000 list for Action1, founded in 2018. Continue reading.

Houston femtech co. debuts new lactation and wellness pods

mom pod

Houston-based femtech company Work&, previously known as Work&Mother, has introduced new products in recent months aimed at supporting working mothers and the overall health of all employees.

The company's new Lactation Pod and Hybrid Pod serve as dual-use lactation and wellness spaces to meet employer demand, the company shared in a news release. The compact pods offer flexible design options that can serve permanent offices and nearly all commercial spaces.

They feature a fully compliant lactation station while also offering wellness functionalities that can support meditation, mental health, telehealth and prayer. In line with Work&'s other spaces, the pods utilize the Work& scheduling platform, which prioritizes lactation bookings to help employers comply with the PUMP Act.

“This isn’t about perks,” Jules Lairson, Work& co-founder and COO, said in the release. “It’s about meeting people where they are—with dignity and intentional design. That includes the mother returning to work, the employee managing anxiety, and everyone in between.”

According to the company, several Fortune 500 companies are already using the pods, and Work& has plans to grow the products' reach.

Earlier this year, Work& introduced its first employee wellness space at MetroNational’s Memorial City Plazas, representing Work&'s shift to offer an array of holistic health and wellness solutions for landlords and tenants.

The company, founded in 2017 by Lairson and CEO Abbey Donnell, was initially focused on outfitting commercial buildings with lactation accommodations for working parents. While Work& still offers these services through its Work&Mother branch, the addition of its Work&Wellbeing arm allowed the company to also address the broader wellness needs of all employees.

The company rebranded as Work& earlier this year.

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