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Small businesses are the backbone of the Texas economy, and they play a vital role in creating jobs, driving innovation, and promoting economic growth. According to the latest statistics, there are over 2.7 million small businesses in Texas, accounting for nearly 99% of all businesses in the state.
Most recently, Houston was seen as the best city in Texas to start a business according to a poll published by Houston Chronicle.
“I think Texas is in a great position overall, and then Houston being an international city, a port city, has been one of the preferred locations for a lot of those companies,” said Craig Rhodes, vice president of regional economic development at the Greater Houston Partnership in the article.
Let’s take a look at some of the small business statistics for Texas.
Employment Statistics:
Small businesses in Texas employ over 4.7 million people, which is about 45% of the state’s private-sector workforce. In 2019, Texas added over 95,000 new small business jobs, accounting for nearly 70% of all new jobs created in the state that year.
Small Business Loans and Funding Statistics:
Small businesses in Texas have access to a variety of financing options, including bank loans, SBA loans, and revenue-based financing. According to a recent survey by the Federal Reserve Bank of Dallas, 65% of small businesses in Texas had outstanding loans or lines of credit in 2020.
The survey also found that small businesses in Texas had a slightly higher loan approval rate than the national average. In 2020, 71% of Texas small businesses that applied for credit were approved, compared to 68% for small businesses nationwide.
In addition to traditional loans, small businesses can also take advantage of other cash funding sources, including revenue-based financing. This type of funding gives small business owners access to quick cash for expansion, equipment, payroll, and more. These advances typically range between $10,000 and $150,000.
Small Business Closing Statistics:
Unfortunately, not all small businesses in Texas succeed. According to data from the U.S. Bureau of Labor Statistics, about 20% of small businesses in Texas fail within their first year, and about 50% fail within their first five years.
However, the COVID-19 pandemic has made the situation even more challenging for small businesses in Texas and across the country. A recent report by Yelp found that over 19,000 small businesses in Texas had closed permanently due to the pandemic as of August 31, 2021.
The report also found that the industries most affected by the pandemic were restaurants, retail, and beauty and fitness businesses. However, there were some positive signs as well, with new business openings in Texas increasing by 13.2% in the second quarter of 2021 compared to the same period in 2020.
Conclusion:
Small businesses are the heart and soul of the Texas economy, and they have a significant impact on job creation and economic growth. While many small businesses in Texas have been affected by the COVID-19 pandemic, there are still plenty of opportunities for entrepreneurs to start and grow successful businesses.
Whether you are an existing small business owner looking for financing or a new entrepreneur looking to start a business, there are resources available to help you succeed. If your business is currently in need of cash funding, Cactus Cash can help your cash flow by infusing capital into your company. Cactus Cash does not base its decision on collateral value, not on a high FICO score, and not on the size of the owner’s financial statement. Cactus Cash offers advances between $10,000 and $500,000.
Get started today – our no-cost, no-obligation application is quick and easy – decisions are typically made within a few hours of submission and if you’re approved, you’ll have the cash within three business days. Find out how much cash you can qualify for today!