Katy Ranks Among Top 10 Most Entrepreneurial Cities in the U.S. by GoDaddy
Katy has officially earned national recognition as one of the most business-savvy cities in the country. In its newly released 2025 Most Entrepreneurial Cities list, GoDaddy ranks Katy #9 in the U.S. based on the volume of new business ventures created during the past calendar year.
According to the report from GoDaddy’s Small Business Research Lab, Katy added 6,660 new businesses in 2024, reflecting a 12% year-over-year increase in small business formation. That growth placed Katy alongside larger metropolitan areas like Los Angeles and Denver and ahead of dozens of mid-sized cities, showcasing a strong entrepreneurial base in the region.
“Small businesses are vital in fueling growth across the country, but they don’t always get recognized for how much they punch above their weight,” said Gourav Pani, President of Independents at GoDaddy. “These rankings show new businesses emerging from every corner of the country, and entrepreneurs are proving they can succeed anywhere.”
GoDaddy’s analysis focused on microbusinesses—typically those with fewer than 10 employees—using proprietary data on digital presence and startup activity across 20 million online ventures nationwide.
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Local Growth Supported by Regional Trends
Katy’s inclusion in the top 10 mirrors broader growth patterns in Greater Houston and Texas as a whole. According to the Office of the Texas Governor, Texas led the nation with nearly 500,000 new business applications in 2024. Many of these emerged in fast-growing suburban markets like Katy, which combine strong consumer demand with an increasingly digital-first mindset among entrepreneurs.
Texas recently earned Site Selection magazine’s Governor’s Cup for the 10th year in a row, awarded to the state with the most capital investment projects. The honor reflects Texas’s consistently strong business climate—an advantage that fuels entrepreneurial cities like Katy. Governor Greg Abbott called the award a testament to the state’s economic momentum, saying “Texas continues to shine as the beacon of economic prosperity in America, and I am proud to accept Site Selection’s Governor’s Cup for a record-shattering tenth straight year. Texas is the new frontier where dreams, families, and jobs grow. This honor is a testament to the unmatched business climate and highly skilled and diverse workforce we have cultivated here in the Lone Star State.”
According to the Katy Area Economic Development Council, Katy supports a thriving business ecosystem with 33,689 total businesses and a workforce of over 461,000 individuals aged 16 and older, many of whom participate in small and midsize enterprises. Key entrepreneurial sectors such as professional, scientific, and technical services alone account for 3,378 businesses and over 34,000 jobs, while the retail trade and food service industries collectively support more than 6,500 businesses and over 85,000 employees. These figures illustrate the depth and diversity of Katy’s small business environment—particularly in service-driven industries where microbusinesses are prevalent.
“Frankfort, Ontario, Katy, and Alameda all emerged as new hotspots and challenge the idea of where entrepreneurship thrives,” said Pani. with GoDaddy.
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Infrastructure, Demographics, and Opportunity
Katy’s infrastructure and demographics continue to make it a favorable environment for small business development. The area offers access to major transportation corridors, a fast-growing population, and a median household income above the national average, contributing to high demand for local goods and services.
Moreover, Katy’s highly educated and diverse population, combined with proximity to Houston’s economic engine, gives small business owners access to both a local customer base and regional growth opportunities. With Katy's highly educated population—more than 319,000 residents hold an associate’s degree or higher—and substantial commuter traffic that fuels local demand, the data reflects a robust foundation for continued entrepreneurial success.
Digital Presence Driving Microbusiness Growth
The businesses tracked in GoDaddy’s report are predominantly digital-first—those that operate with a website, online store, or other web presence. The Katy area has seen a noticeable rise in these types of ventures, from local boutiques and food vendors to consultants, service providers, and ecommerce startups. GoDaddy’s Small Business Research Lab has surveyed over 50,000 entrepreneurs since 2018, positioning it as a leading source for national small business trends.
Katy’s rise in national rankings reflects not just a strong year for new business starts, but a broader shift in where Americans choose to build. As suburban cities like Katy continue to foster an environment conducive to innovation, entrepreneurship is no longer just a big-city game.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
