Data from the U.S. Census Bureau’s Annual Survey of Entrepreneurs (ASE) analyzed by Volusion lists the Houston—The Woodlands—Sugar Land metro area in the top 15 American cities with minority-owned startups.

The Houston—The Woodlands—Sugar Land metro ranked 13th on the list with over 35 percent of startups owned by minorities.

Here’s what the report had to say about the area:

“A combination of no state income tax and no zoning laws contribute to the city’s business-friendly environment. Just over a third of Houston’s startups are owned by minorities; however, minorities account for almost 63 percent of the population.”

“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. Although Houston is well-known for its petroleum and technology industries, minority-owned businesses are most active in accommodation and food services.”

As the report indicates, minority startups represent a small part of the start-up numbers. According to Census Bureau data, startup firms in their first two years of business represent about 9 percent of all businesses in the U.S. and employ 2 percent of workers. Despite minorities making up almost 40 percent of the US population, minority-owned startups account for only 27.4 percent of all startup businesses.

Minority-owned startups help boost overall minority employment numbers. The metro area’s rank a strong indicator of high employment across all demographics.

Here are the full numbers on the Houston—The Woodlands—Sugar Land area compiled in the Volusion report:

• Startups that are minority-owned: 35.4%

• Number of minority-owned startups: 3,697

• Employees at minority-owned startups: 15,673

• Gross sales at minority-owned startups: $1 billion to less than $5 billion

• Most active industry for minority-owned startups: Accommodation and food services

• Minority percentage of population: 62.8%

Texas has three metro areas in the top 15 cities with the most minority-owned startups. California has the most with five.

15. Sacramento--Roseville--Arden-Arcade, CA

14. Baltimore-Columbia-Towson, MD

13. Houston-The Woodlands-Sugar Land, TX

12. Dallas-Fort Worth-Arlington, TX

11. Chicago-Naperville-Elgin, IL-IN-WI

10. Atlanta-Sandy Springs-Roswell, GA

9. New York-Newark-Jersey City, NY-NJ-PA

8. St. Louis, MO-IL

7. Washington-Arlington-Alexandria, DC-VA-MD-WV

6. San Antonio-New Braunfels, TX

5. San Francisco-Oakland-Hayward, CA

4. Miami-Fort Lauderdale-West Palm Beach, FL

3. Los Angeles-Long Beach-Anaheim, CA

2. Riverside-San Bernardino-Ontario, CA

1. San Jose-Sunnyvale-Santa Clara, CA















