Texas Small Business Statistics
Many people associate Texas with cowboys and the desert, but today, it is one of the most economically strong states, outpaced only by California. The state has $1.887 trillion in GDP alone, surpassing such countries as Australia ($1.543 trillion USD), Turkey ($815.3 billion USD), and even Russia ($1.776 trillion USD).
Texas is one of the most hard-working states. It is home to more than 13 million people who are highly skilled and motivated to do their job. Not only a decent financial reward but also the system of workers' rights protection act as incentives.
State law is committed to maximizing the quality of life and protecting workers' rights. The harmonious interaction between employees and employers explains the number of thriving businesses there.
The state boasts 48 major companies, including Toyota, Siemens, American Airlines, as well as more than a million small firms of all kinds. Small entities have the greatest impact on the state's economy.
Texas' fortunate location and modern, advanced infrastructure have turned the state into the nation's largest exporter. It has been holding that title for nearly 18 years.
Next, we suggest you check out some stats to get the full picture of how small businesses are doing in Texas.
Texas Small Business Stats: Key Info
- There are more than 2.8 million small firms registered in Texas;
- Small companies make up 99.8% of all businesses in the state;
- Net growth in the number of companies is typically more than 8,000 firms per year. For example, during 2019-2020, 72,211 entities were established in Texas, while 63,872 firms were dissolved. The net increase in 2019/20 was 8,339 entities;
- 79.8% of startups survive in Texas one year after being founded;
- To start a company in Texas, you need to file Articles of Organization with the state and pay a $300 registration fee. The foundation process takes an average of 3 days;
- If you plan to start a non-profit organization, you only have to pay a $25 fee;
- Also, every firm in the state is required to appoint a registered agent to meet the requirements of the authorities. It costs businesses from $0 to $200 a year;
- The industries with the biggest number of companies are:
| Industry | Number of Companies |
|---|---|
| Professional, Scientific, and Technical Services | 373,776 |
| Construction | 369,892 |
| Administrative, Support, and Waste Management | 311,937 |
- At the same time, the smallest number of companies are registered in such fields:
| Industry | Number of Companies |
|---|---|
| Management of Companies and Enterprises | 1,543 |
| Utilities | 2,759 |
| Agriculture, Forestry, Fishing and Hunting | 23,719 |
- The fast-growing transportation business was able to beat pre-pandemic revenue margins by 10%;
- Small businesses in Texas exported $105.3 billion worth of goods in 2019;
- Among small firm owners, 43.2% (1,076,697) are women, and 56.8% (1,564,944) are men;
- There are also 112,844 firms in the state that are owned by both men and women;
- Hispanics and racial minorities own 49.8% of small businesses in Texas. This is one of the highest rates in the country;
- The state imposes no tax liability on individual income;
- According to a report by CNBC, Texas is the fourth best state for doing business in the U.S.
Texas Small Business Stats: Employees
- In 2021, the unemployment rate in Texas was at 5.7%. This is less than the previous year when the unemployment rate was 7.7%;
- Small firms employ 4.8 million people in Texas;
- Employees of small companies make up 45.1% of the state's workforce;
- Among the small firms' employees, 45.6% are women, and 54.7% are men;
- Hispanics and racial minorities represent 37.6% and 24.8% of the total workforce, respectively;
- Companies with fewer than 20 employees generate the most positions;
- Net job growth averages over 140,000 per year. In 2019-2020, new small enterprises presented the state with 1.2 million new jobs, while closing businesses cut at least 1 million of them.