Houston is a great place to start a business — in fact, it’s one of the best places in the country for fledgling companies, according to a report from CommercialCafe.

The Bayou City ranked as the No. 7 big city — defined as those with populations over one million — thanks to factors like startup density and business growth.

Nearly 11% of all businesses in Houston are less than one year old, which indicates a welcoming environment for startups. That proportion has skyrocketed over the past five years: Young businesses have increased by 14.9% since 2019. More importantly, though, 64.5% of those new businesses survived.

The city also has the workforce to back up those new businesses. Houston’s population of freelance workers increased 8.7% from 2019 to 2023, with over 97,000 self-employed residents ready to contribute their expertise. The city’s college-educated population also jumped 15.3% during the same time frame, accounting for one quarter of all residents.

Furthermore, the city has a regional price parity of 100.2 out of 100, meaning business operating costs are essentially on par with the national average.