Which are the Best Cities for Minority Entrepreneurs?

Cities aren’t just a place to work, they’re a place to live.

Places like Houston, Miami and Atlanta have all experienced massive population growth over the past decade because of the highly inclusive and affordable lifestyles they offer. Home to a large number of world-class incubators, these up-and-coming tech hubs have begun to attract minority entrepreneurs looking for the best places to live, work and launch a business.

Read on to find out the cities with the best and most diverse startup ecosystems.

(Hint: It’s not Silicon Valley.)


Drawing on data from the U.S. Census Bureau, the Center for Opportunity Urbanism and the Kauffman Index, Expert Market investigated the corporate landscape for minorities in over 40 key business hubs.

Individual rankings from these factors were combined to celebrate the cities where efforts to champion diversity, coupled with a favorable startup environment, have paved the way for minority entrepreneurs.

Ranking Factors

17.5% | Percentage of Companies Owned by Minorities

17.5% | Economic Opportunities for Minorities Index

15% | Rate of New Entrepreneurs

15% | Startup Density

15% | Startup Costs

10% | Access to Financial Resources

10% | Opportunity Share of New Entrepreneurs

The Results

Scroll through our infographic below to learn the top cities for minority entrepreneurs. The cities that just missed out on the top 10 can be found in a table at the end of this article.

Houston is the Best City for Minority Entrepreneurs

Affordable living costs combined with a strong prevalence of world-class incubators has made Houston the most appealing city for minority entrepreneurs.

Houston is home to the most diverse population in the US and emerged as the top city for minority entrepreneurs to live, work and start up a venture. When it comes to business leadership, the Texan city has actually reversed the racial bias – residents in Houston are in fact more likely to work with or buy from a business owned by a minority.

When results are broken down by state, Texas is the clear diversity champion with three cities ranking among the top 10 including Dallas and tech hub Austin.

Miami and Atlanta Take 2nd and 3rd Place

Trailing close behind Houston were Miami and Atlanta who scored highly across the board due to their well-funded startup resources, affordable cost of livings and large number of minorities in leadership positions.

The Rise in Latino Entrepreneurship

Interestingly, the report also found that the number of businesses owned by minority entrepreneurs are on the rise nationwide – an astounding 40 percent of new entrepreneurs in 2016 were African-American, Latino, Asian or another non-white ethnicity.

Latinos in particular are more represented among new minority entrepreneurs than ever before. The share of new Latino entrepreneurs has more than doubled since 1996 from 10 percent to 20.8 percent.

The Top 20 Cities for Minority Entrepreneurs

Overall Rank



Houston, TX


Miami, FL


Atlanta, GA


Riverside, CA


Baltimore, MD


San Jose, CA


Dallas, TX


Austin, TX


Orlando, FL


New York, NY


San Antonio, TX


Las Vegas, NV


Tampa, FL


Washington, DC


Los Angeles, CA


Charlotte, NC


Jacksonville, FL


Denver, CO


Chicago, IL


Detroit, MI
Written by:
Julia Watts author headshot photo
Specialising in business software, Julia writes jargon-busting guides about VoIP, fleet management, dash cams, fuel cards, and more. Having spent almost a decade writing for entrepreneurs and reviewing business solutions, she loves helping exciting ventures – big or small – to flourish.