Melting Pot

Houston lands on list of U.S. metros with most minority-owned startups

Houston lands on list of U.S. metros with most minority-owned startups

Houston park with skyline
Houston has among the highest percentage of minority-owned startups in the United States. Sky Noir Photography by Bill Dickinson/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 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 is in the $1 billion to less than $5 billion range. 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-Arlington market ranks immediately ahead of Houston at No. 12. Dallas startups are 35.5 percent minority owned, a total of 4,357 startups with 23,992 employees. Meanwhile, San Antonio-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 people.

All of the Texas markets featured in the study boast a higher percentage of minority-owned startups compared to the national average, which is only 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.

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. In each, about half of the area's startups are minority owned.

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Read more of this story on our sister site, InnovationMap.com.