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    New Report Analyzes Texas*s Small Businesses
    Alex Wang

    Small Businesses Employ 46.4 Percent of Private-Sector Workers, Key to Economic Recovery

    WASHINGTON 每 Small businesses significantly impact Texas*s economy, employing 4.1 million workers in 2010 with most of the employment coming from firms with 20 每 499 employees, according to a new state-by-state report released today by the U.S. Small Business Administration (SBA) Office of Advocacy.

    The Small Business Profile for the States and Territories, an annual analysis of each state*s small businesses, also finds that self-employment in Texas improved over the last decade, while minority self-employment saw the largest growth. All in all, Texas*s 2.3 million small businesses represent 98.7 percent of all employers, and they employ 46.4 percent of the private-sector labor force. Nationwide, there are 27.8 million small businesses representing 99.7 percent of all employers and employing nearly half 每 49.1 percent 每 of the private-sector labor force.

    ※Like many states across the nation, small businesses are helping to strengthen the economy in Texas,§ said Dr. Winslow Sargeant, Chief Counsel for Advocacy. ※Most of the country*s small businesses continue to be very small, having fewer than 20 employees, but they paint a big picture of a recovering America. Advocacy*s analysis gives us a clear understanding of just how important small businesses are in Texas.§

    Texas*s small business profile contains detailed information about the number and type of businesses in the state, business owner demographics, industrial makeup, business turnover and income and finance. Most data are also presented in comparison with similar data over time. Each state*s small business profile can be read or downloaded by visiting the Office of Advocacy*s website at www.sba.gov/advocacy/848.

    Highlights of the Texas small business profile include:

    Overall Economy

    ∫ Texas*s economy was was strong in 2011, with real gross state product increasing 7.0 percent and private-sector employment increasing 3.1 percent.

    ∫ The state*s unemployment rate decreased by 0.3 percent in 2011.

    ∫ During the midst of the economic recession, the employment situation from 2007-2010 was up, and small businesses in Texas represented all of the net new jobs.

    Small Businesses

    ∫ Small businesses in Texas employed 4.1 million workers in 2010, with most of the employment coming from firms with 20 每 499 employees.

    ∫ Most of the state*s small businesses are very small as 83.1 percent of all businesses have no employees, and most employers have fewer than 20 employees.

    ∫ In 2011, the number of opening establishments was higher than closing establishments, resulting in a positive change in net employment.


    ∫ Self-employment in Texas improved over the last decade by 16.8 percent.

    ∫ Minority self-employment saw the largest growth in Texas over the last decade.


    The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed and Senate confirmed Chief Counsel for Advocacy advances the views, concerns and interests of small business before Congress, the White House, federal agencies, federal courts and state policymakers. Regional advocates and an office in Washington, D.C., support the Chief Counsel*s efforts. For more information, visit www.sba.gov/advocacy, or call (202) 205-6533.

    Valerie Nguyen

    SBA Houston District

    8701 South Gessner, Ste. 1200

    Houston, TX 77074


    713-773-6550 (fax)

    Follow SBA Region VI at:



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