Small and medium scale businesses are one of the most vibrant sectors playing a good part in the economy of Texas. The significance of the small and medium enterprises are derivable for its capacity in the generation of employment, requirement for technology and low capital, use of local resources and inherited skill, organizing of resources and final exportability of products. This article furnishes statistics about Texas small and medium businesses.
Number of small businesses present are 2,366,053 of which 390,433 are with employees and 1,975,620 are without employees. Total number of workers employed by small businesses are 4,119,801.
Overall state economy: In 2012, Texas’ gross state product grew at a faster rate with increase by 4.8 percent compared to US gross domestic product which was only 2.5 percent.
- The employment rate has improved considerably in Texas with the unemployment rate decreased by 0.1 percent from 6.1 percent in December 2012 to 6.0 percent December 2013 which accounts to be below 6.7 percent which is the national average point.
Rate of employment: Small business in Texas employed half or 4.1 million of the state’s workforce under private sector in 2011.
- Most firms with employees are small making up to 98.6 percent of the employers present in the state.
- The three major industries with large employment are: healthcare and social assistance, accommodation and & food services and construction.
- In 2011, small businesses created about 139,251 new jobs.
- Texas employment in private sector has been increased by 3.3 % in 2013 which is above 2.1 %, the national average growth rate.
Business turnover: During the 2nd quarter of 2013 around 21,972 establishments opened and 21,902 have been closed.
- The inability to pay debts by the businesses have dropped down from 2010-2013 resulting in a stronger economy state.
Business owner demographics: Woman-owned businesses were estimated to be 669,000 and minority owned businesses were 792,000 in 2011.
International trade: In 2012, small businesses exported goods with a total of 40,737 companies from the state composed majorly about 93.1 percent or 37,921 small firms where they generated about 30.6 % of the total export value in the state.
Income and finance:Majority of small businesses are sole proprietorship businesses where the annual income has been increased by 6.8 % during the 3rd quarter of 2013 which totaled up to $172.4 billion.
- Community reinvestment act lending institutions issued about 403,654 loans under $100,000 in 2012.
Statistics at the industry level
Aerospace, aviation and defense: The department of aerospace and aviation industry employs about 153,000 of the state workers around 1,300 establishments.
- Texas has about 250,874 personnel with 15 active military bases with being $150 billion overall impact on the economy of the state.
Information and computer technology: Texas is home to 15,100 technology firms, 196,000 workers employed with average wage about $96,714.
- Employment rate in computer systems design has been increased by 60 percent over last 10 years.
- Texas state takes second position in the whole nation in computer and video game employment, with being 13,600 people employed either directly or indirectly.
Advanced technology and manufacturing: The manufacturing industry in Texas employs 874,450 people with an average salary of $71,500 where general motors and Toyota being the largest employers in automotive industry.
- It is the top US state in manufacturing shipment value and exports where it exported more than $24.4 billion in 2013 under transportation equipment.