Houston is one of the best places to start a business in the country. According to The Kauffman Index of Entrepreneurship, Houston was ranked as the nation's top city for start-ups and entrepreneurial activity for the second year in a row.
Houston is a great place for start-ups
Houston is a great place for start-ups. It has a low cost of living, an available labor pool and growing markets. The city's low cost of living is one of the biggest draws for people looking to start their own business. Houston has the cheapest housing market in the country, according to a 2012 survey conducted by Forbes Magazine. The average rent for both apartments and homes in Houston is $834, which is much cheaper than places like San Francisco where average rent for an apartment is $1,931 per month. People are able to pay for necessities like food, gas and utilities without having to worry about spending large sums of money on housing. People can also choose from a multitude of rental options depending on their budgets, which gives them more flexibility if they're seeking to save money.
Business owners have access to a diverse labor pool in Houston with its various ethnic groups living in the city. A study conducted by the Beacon Council found that Hispanic and Latino people represent 38% of Houston's population, while African Americans make up another 30%. By comparison, the U.S.'s overall demographic breakdown is 64% Caucasian, 12% Hispanic/Latino and 17% African American. Houston's population of foreign-born residents is also higher than the national average
There are other several factors that make Houston a great place for start-ups. There is a lot of support in the city for entrepreneurs and small businesses. There are many local organizations that support entrepreneurs. Some of these organizations are non-profit, like Jumpstart and The Houston Angel Network. Other organizations are for profit, like Houston Business Connections, Global Workplace Solutions and the Houston Technology Center. Additionally, there are two business incubators in Houston: Rice Business Plan Competition (the largest of its kind) and Texas Medical Center Innovation Institute (TMCI). Technology companies have many options when it comes to finding work space such as the Houston Technology Center and Hines's Central Office Towers. There are also many co-working spaces such as Springboard Collaborative, Pearland Chamber of Commerce and The Generator. I was able to learn more about all of these options by attending a recent Startup Grind event at the new TMCI building on Smith Street in Downtown Houston.
