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Texas Small Businesses: An Analysis

New Business ListingsAccording to the Office of Advocacy, Texas's small businesses significantly impact the state's business climate with both the hiring process and the state's actual economy. The definition of a small business includes companies with less than 500 employees. The Office of Advocacy states that in 2008, there were 2.2 million small businesses in Texas, with nearly 400,000 of them being employers. About 45.9 percent were private sector positions, while 98.6 percent made up small firms.

In 2008, private sector firms were divided into 20 categories, with the most firms being in construction with 262 firms, miscellaneous firms at 255 firms, and professional services with 235 services. Utilities only had three firms in 2008 and forestry services only had 19 firms. The Office of Advocacy then analyzed how many employees worked at each kind firm, and in retail firms, they had 1,171 employees total, while 1,188 employees worked in healthcare services altogether.

The Office of Advocacy states that 391,010 of Texas businesses were small businesses, while only 5,402 were large businesses and that Texas had 1,835,870 employees in 2008. From 2006 and 2007, Texas created 307, 513 new jobs with 112, 192 being at small businesses with less than 500 employees. In 2007, more than 1 million businesses were owned by men, while only 610,000 were owned by women and 400,000 were jointly owned by both men and women. In 2007, more than 720,000 businesses were owned by minorities, a more than 45 percent increase since 2002.

The year 2009 started off with trepidation as private sector employment was down by four percent and parts of the unemployment rates were up, including government employment which was up by 2.4 percent from 2008 with 1,741 percent of the Texas government workers out of work. Minority self-employment unemployment rates were up by 9.4 from 2008 as 462 percent of minorities lost their jobs. Later in 2009, the state showed some improvement in the fourth quarter as 22 new businesses opened, creating 87 more jobs. About 101 more businesses expanded, adding 388 more positions, and 110 new contractions occurred, leading to over 400 contractual jobs.

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