Melting pot

Houston reported to have among the most minority-owned startups in the nation

Houston, named the most diverse city in the country, also has a strong representation of minority-owned startups. Photo by Tim Leviston/Getty Images

While Houston's population is considered diverse, the breakdown of startup founders doesn't necessarily follow suit. However, according to a new report, the city of Houston has among the highest percentage of minority-owned startups in the United States.

Using data from the U.S. Census Bureau's Annual Survey of Entrepreneurs, Volusion published a report naming the 15 cities with the most minority-owned startups, and the Houston, The Woodlands, and Sugar Land market ranked at No. 13. The city has 35.4 percent of its startups (3,697 startups) owned by minorities. While this percentage is enough to secure placement on the list, Houston's actual minority population is 62.8 percent, so the Bayou City still has room to close the gap.

According to Volusion's study, 15,673 people work at Houston's minority-owned startups and the gross sales of these companies ranges from $1 billion to less than $5 billion. The top industry for minority-owned startups is accommodation and food services.

"One of the major resources for minority business owners is the Greater Houston Black Chamber of Commerce, which offers a Business Readiness Training Program to help new entrepreneurs develop their skills," the report reads. "Although Houston is well-known for its petroleum and technology industries, minority-owned businesses are most active in accommodation and food services."

The Dallas, Fort Worth, and Arlington market ranks immediately ahead of Houston at No. 12 with the slightest edge of a fraction of a percentage. Dallas startups are 35.5 percent minority owned, making up 4,357 startups with 23,992 employees. Meanwhile, San Antonio and New Braunfels slides into the No. 6 spot on the list with 45 percent of its startups (1,534 companies) being minority owned and employing 4,160.

Five of the top 15 metros on this list are in California, and the top three markets are all in California: No. 1 San Jose-Sunnyvale-Santa Clara, No. 2 Riverside-San Bernardino-Ontario, and No. 3 Los Angeles-Long Beach-Anaheim. Each of the top three boasts around 50 percent of their startups being minority owned.

According to Volusion's report, the national trend is disproprotionate when you compare the markets' population diversity to its minority-owned startups. Chart via Volusion

All of the Texas markets have a higher percentage of minority-owned startups compared to the national average, which is 27.4 percent. According to the U.S. Census Bureau, almost 40 percent of the country's population identifies as nonwhite, and some estimates, predict the U.S. will be considered a "majority-minority" country by 2044.

According to Volusion, some of the aspects that are holding back these types of companies include lack of resources and access to capital.

"In fact, a recent survey by Morgan Stanley found that while eight out of 10 investors perceive the funding landscape as balanced, investments in minority and women-owned ventures fall short by as much as 80 percent," reads the report. "The researchers cite increased risk perception, as well as lack of access and familiarity with minority and women-led businesses as key drivers of what they coin The Trillion-Dollar Blind Spot."

According to another report, money isn't the city's biggest issue. Houston was named as an affordable city for startups in a national report last month.

In April, Houston was named as the most diverse city in the nation, and earlier this month, a report found that diversity was well represented in Houston's STEM industries.

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Building Houston

 
 

Boxes by Speak As One keep mental health tools feeling fresh, without overloading the user. Photo courtesy of Speak As One

Mental health apps are so alluring, but once you’ve recorded your two-week streak and things are feeling a little more organized, it can be hard to keep going. It’s hard enough to keep up with journaling and a great bedtime routine, and many lovely self-help tools also lose their effectiveness when the novelty wears off.

A smart company might harness that novelty as its hook — and an easily distracted self-helper won’t fall off the wagon. Like many other companies in the mental health space, Speak As One will work on a subscription model, but this one won’t languish, unused on a credit card statement. The service, which plans to launch during SXSW 2023, delivers boxes of tangible mental health tools, inspiration, games, and even sensory objects that act as a monthly nudge to try something new, and curiosity takes care of the rest.

A sample box included:

  • Stress balls with short inspirational phrases by MindPanda
  • An Emotional First Aid Kit containing advice for situations as they come up, like sleeplessness and feelings of inadequacy
  • Tiny colorful putties at different resistances by Flint Rehab
  • A notebook, and two books: Athlete Mental Health Playbook and 1000 Unique Questions About Me
  • Other small items

It’s more than packing and shipping out a few toys each month. The boxes are curated with help from a licensed therapist, who leaves a personal note along with tips on how to use the items inside and additional resources. There is one type of box right now that aims to “reduce anxiety, increase mindfulness, and promote peace and balance,” but for further customization (for $10 more), the team is working on boxes tailored to first responders, veterans, athletes, and people in “recovery.”

Speak As One emphasizes community stories in its branding outside the delivery box, and uses inspiration from “influencers” (less content creators and more so people who can embody a relatable story) to build the specialty boxes. The company’s YouTube channel shares dozens of interviews with founder Julie Korioth, a former board member for Austin’s SIMS Foundation, a well-respected mental health resource for members of the local music industry.

“With hundreds of millions of people struggling with mental health, and COVID making the issue much worse, society continues to ostracize those who openly discuss mental health issues,” said Korioth in a release. “I founded this company so we can change the way the world sees, discusses, and supports mental health. Our goal is to promote empathy, connectedness, acceptance, and thoughtfulness with an innovative toolkit that caters to specific needs."

In addition to offering a nudge, these boxes could make great care packages for a loved one who is feeling introspective or going through a significant life event. It is possible to buy gift boxes, if presentation is your thing, but it’d be just as easy to repackage a box that comes before the receiver ready to appreciate the items at home.

The cost of one box is manageable at $49.99 (especially considering the retail value of products included, which the sample box far exceed), but for many subscribers this adds up fast. Luckily, there is no pressure to continue a lengthy commitment — subscriptions last between one and six months, so users have plenty of time to reconsider and sit with the items that have already been delivered.“

The goal is to meet our audience at any phase of their mental health journey,” said Korioth. “We’re creating change and a global life-long support system for children and adults dealing with mental health challenges. We simultaneously highlight businesses, the tech community, athletes, and artists doing wonderful work in this space.”

The company plans to partner with corporations to connect with employees and provide boxes to individuals the company chooses, and will turn some content into session albums with sales proceeds dedicated to mental health research.

More information and links to preorder are available at speakasone.com.

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This article originally ran on CultureMap.

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