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Favorable outlook for business growth in Texas

On Behalf of | Jul 20, 2022 | Business Law |

Business formation requires a willingness to assume tremendous risk. Statistics for Texas reveal that, despite issues of labor and capital, trends within the state economy show the economic environment remains fertile for development and growth.

Capital and labor are challenges to expanding economic opportunity

The breadth of Texas’ economy encourages expansion. Three million small businesses employ almost 5 million people. The economy grew at a rate of 10.1%, well above the national rate of 6.9%. The lack of corporate or individual income taxes and no state property tax create a low tax burden. As a result of increased growth within many of the state’s metropolitan areas, large support networks of business owners have developed.

Access to financial capital and a tight labor market present two significant hurdles for those considering a new business. Banks and venture capitalists remain cautious about lending. An unemployment rate of 4.4%, slightly above the national average, presents opportunities for workers, but at an increased cost to the small business. The trend may continue; Austin recently ranked as the most searched destination for relocation.

Business experience in Texas

A new business requires careful financial and legal planning. Current market conditions won’t last forever, and no one can know all that the future will bring. Business practices that work in 2022 may not pay off a year from now. Fortunately, business owners can reduce the risk they take and maximize their ability to succeed through careful planning. Attorneys familiar with all aspects of business formation and development can guide businesses small and large.