22 Fascinating Texas Small Business Statistics


Texas is one of the most economically resilient states in the US. It has the second largest economy in the country, with a gross state product of $1.887 trillion, second only to California. In fact, if the state were a sovereign nation, it would be the 10th largest economy in the world.

A major driver of the economy is business, small businesses in particular. They make up a huge chunk of all businesses operating in the state. Microenterprises have managed to permeate every sector in the Texas economy, making them a crucial cog in the wheel that represents the larger US economy.

Below are some statistics on small businesses from the state of Texas:

  • There are 2.8 million small businesses, or 99.8% of all businesses in the state. 
  • The state ranks #1 in America for small minority businesses, with 710,215 minority-owned, small enterprises.
  • There are 4.8 million small business employees—that’s 45.1% of all Texas employees.
  • The utility services industry is the smallest in the state, with only 2,785 small enterprises engaged in it.
  • Start-ups have a one-year survival rate of 79.8%.
  • The professional, scientific, and technical services sector is the largest commercial industry in the state, with 354,447 micro-enterprises currently engaged in it.
  • As of August 2020, small enterprises in the hospitality/leisure industry employed 1,147 million people, approximately 9% of non-farm labor.
  • It takes three business days to register an LLC in Texas. However, one can go through the Secretary of State’s office for same-day electronic filing. In most states, it usually takes between a week and 10 business days.
  • Small businesses registered in a different state must obtain a Certificate of Authority from the Secretary of State’s office if they want to open shop in the state.
  • Small businesses in the transportation sector managed to surpass pre-pandemic revenue margins by 10% in mid-May 2020. 
  • Texas does not impose taxes on personal income.
  • From the year 2020 to 2021, there is a zero-tax threshold for small businesses that have an annual turnover of less than $1,180,000.
  • Business tax is referred to as franchise tax in the state of Texas.
  • According to a survey, 72% of black-owned microenterprises belong to the service industry, with 28% being in the professional, scientific, and technical services sector.
  • There is a $300 filing fee for a Certificate of Formation on any for-profit organization that wants to incorporate within the state’s borders. For nonprofits, the fee is capped at $25.
  • Small business incubators and product development companies can get asset-backed loans from the Product Development and Small Business Incubator Fund (PDSBI).
  • Texas state law requires that every new Texas LLC designate a Texas registered agent that will be available during regular business hours at a physical address within Texas.
  • The state ranks #2 in America for veteran-owned small enterprises, with a total of 213,590.
  • Small firms in the wholesale and retail sector pay 0.375% of their revenue as taxes.
  • Microenterprises in sectors other than retail and wholesale pay 0.75% of the revenue as taxes.
  • Mom-and-pop businesses with a revenue of $20,000,000 or less (also called the EZ Computation Total Revenue Threshold), pay 0.331% of their revenue as taxes.


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