How Many Small Businesses are there in Texas?

Author: Jason Coles

Updated On:

Updated On:

The United States has always been regarded as the land of opportunity. Small businesses have been the backbone of the U.S. economy for many years. Most businesses that are started begin with a dream, someone’s lifelong ambition, which then turns into a small business.

Texas is no stranger to small businesses; in fact, it ranks 2nd in the U.S. for the most number of small businesses in the state.

The Lone Star State is considered America’s economic engine. Over the past several years, it has been consistently voted as one of the top states for business due to the government’s pro-business approach, the second-largest civilian workforce, low and competitive tax incentives, and high quality of life.

Number of Small Businesses in Texas

So, how many small businesses are there in Texas? There are 3,110,293 (3.1 million) small businesses in Texas, according to the latest figures (2022) from the SBA.

It is not just Americans and Texans starting small businesses in Texas; the state is a hotbed for international entrepreneurs. Hispanic-owned businesses make up 30.1% of all Texas businesses.

The following bar graph shows the number of small businesses in Texas in 2018, 2019, 2020, 2021, and 2022.

Of the 3,110,293 small businesses in Texas in 2022, there is a wide array of different enterprises from small, one-person sole proprietorships or LLCs to much larger businesses with several hundred employees. If you want to join the 3.1 million-plus small businesses in Texas, it is fairly easy to register a business in Texas.

To be a small business in Texas, you have to qualify as one. So, to operate as a small business in Texas, you must have a company with less than 500 employees.

Let’s take a deeper dive into the number of small businesses in Texas by looking at the top industries, business owners, employees, and more!

Small Businesses in Texas 2022 overview

  • Small businesses equate to over 99.8% of all businesses in Texas.
  • There are 4,936,912 small business employees in Texas, which is 44.5% of the state’s employees.
  • Small businesses employing fewer than 20 employees created the most job gains.
  • There are 1,043,000 self-employed minorities in Texas demonstrating the diversity in the state.
  • Trade is huge for many businesses, and there are 38,074 small business exporters in Texas.
  • There are more construction firm small businesses in Texas than any other type – 396,601.
  • Professional, scientific, and technical service firms make up the 2nd largest number of small businesses in Texas – 389,365.

How Many Small Businesses in Texas?

Over 3.1 million is a lot of small businesses to be registered in any one state, but they do say that “everything is bigger in Texas!” Compared to the rest of the U.S., the total number of small businesses in Texas is 9.3% of all U.S. businesses. There are 33.1 million small businesses in the U.S.

We hope this information is useful for those interested in starting a company in Texas, marketing your company to other small businesses in the Lone Star State, or expanding your business in the state.

Texas has an awful lot to offer employers and employees and companies and entrepreneurs from all over the world continue to flock to the state due to its enormous civilian workforce of 14 million, international access by land, sea, and air, world-class infrastructure, a healthy import/export market, and strong population and job growth.

If you would like to download the latest 2022 Small Business Profile on Texas from the U.S. Small Business Administration, Office of Advocacy, the Profile can be downloaded here.

Small Businesses in the US


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Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S. who refer his services to their clients regularly, Jason has written over 1,360 business plans across the past 17+ years for start-up companies and franchises looking to expand their footprint in the United States. Jason is considered a seasoned expert in his field. He creates detailed business plans for his clients that include five-year financial projections, market and industry analysis reports, demographic studies, organizational charts, job descriptions, employee hiring plans, and more.