I recently watched a special report about the State of Texas and its viable economy. Many people are surprised this state has not felt the recession as much as others. Why is there such a discrepancy? I live in Austin, Texas and I’ve noticed help wanted signs all over the place. People are still buying homes here, buying cars, shopping and many individuals here do not seem to be hurting financially. Houston, Dallas and San Antonio also seem to be doing well compared to national statistics.

What is making the difference in the Texas economy? The economy in the state is based largely on small businesses. Small business often employee more people locally and provide consistent jobs to communities. Here are some startling statistics about small business in Texas gathered by the Small Business Administration:

• Texas had 386,422 small employers in 2006,
  representing 98.7% of the state’s employers
  and 46.8% of its private-sector employment.
• Small businesses created 44.3% of the state’s
  net new jobs from 2004 to 2005
• Texas’s real gross state product increased by
  4.1% in 2007. By comparison, growth in the
  Southwest region was 3.7% and the United
  States, 2.0%. (Source: U.S. Dept. of
  Commerce: Bureau of Economic Analysis)

The State of Texas should serves as a great example of the importance of supporting small businesses. Entrepreneurship is strongly encouraged in the State of Texas and small businesses are the backbone of the economy. The state boasts four of the nations largest cities, two which are ranked among the top ten cities for entrepreneurs by Entrepreneur Magazine (Austin-#5 and San Antonio-#10).