Houston Small Businesses Play Vital Role in Region’s Economy

Houston Small Businesses Play Vital Role in the Region’s Economy

Published May 27, 2020 by Kelsey Seeker

Houston’s small business community plays an integral role in both the local economy and the city's vibrant quality of life. This community is driven by diverse owners and is a leading source of job creation and innovation. In fact, Houston's small business community represents a vast majority of establishments within the greater Houston SMA.

Small Business Presence in Houston

According to the US Census' County Business Patterns, 97% of Houston businesses have fewer than 100 employees and 70% have fewer than 10. Businesses with fewer than 100 employees make up more than 50% of Houston’s workforce. These numbers reflect a powerful engine influencing employment, entrepreneurship and policy.

In addition to small employers, there are over 627,000 non-employee businesses in the Houston region. Think freelancers, contractors and self-employed Houstonians. These companies have no paid employees but generate at least $1,000 in income annually. Overall, non-employer businesses in the Houston region generate $31.1 billion in annual revenue.

Houston also ranks among the top 20 cities where small-business owners are thriving, with a startup density of 92.6 startups for every 1,000 businesses. Startups help diversify the region’s economy and foster innovation, strengthening the economy in more ways than one.

Supporting Small Business During COVID-19

The COVID-19 crisis poses mounting challenges for small businesses here and across the country. With more than 1,000 member companies representing one-quarter of the region's workforce, the Partnership has long been a trusted advocate for the business community and this pandemic is no different.

In addition to offering member support through COVID-19, the Partnership has created a hub of small business resources that includes vital information and resources.

We have also shifted our Small Biz Insider digital series to delve into topics that we’ve been hearing from our small business members. Topics like:

As part of the Partnership's mission of making Houston the best place to live, work, we are dedicated to supporting small businesses, particularly during these times of uncertainty by offering resources, guidance and opportunities to connect with fellow members around timely topics.

To learn more about becoming a member of the Partnership or to get involved, email membership@houston.org.