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Report: Small businesses drive nearly half of Texas workforce

Welcoming open sign displayed in a shop window with blurred background.

By Kingsville Independent News Staff

AUSTIN — Small businesses now account for nearly half of all jobs in Texas and almost all employers in the state, acting Comptroller Kelly Hancock said Tuesday, as he released a new report spotlighting the economic power of small enterprises.

“Small businesses power our state’s economic engine, create opportunity and strengthen the character of every Texas community,” Hancock said in a statement.

The report — titled Small Business is Big Business in Texas — finds that roughly 3.5 million small businesses operating in the state make up 99.8% of all businesses. Together they employ more than 5.1 million people, or 44.4% of Texas’ workforce.

Between 2017 and 2022, small business numbers grew by 24%, with revenues climbing 54.5%. The report also notes that small firms accounted for 84% of job growth across the state in 2024 and generated about 40.1% of the private-sector gross domestic product.

Hancock said the timing is key: the findings come just ahead of major retail periods such as Black Friday and Small Business Saturday.

“When small businesses thrive, families thrive,” he added, urging Texans to “shop local” and strengthen their home-communities.

What this means for Kingsville & Kleberg County

In the Kingsville / Kleberg County region, the small-business dynamic echoes statewide trends but shows its own distinct contours:

  • Kleberg County is estimated to have about 555 business establishments according to recent regional economic data.
  • Locally, small businesses may employ approximately 8,700 people — around 68% of Kingsville’s workforce — and represent roughly 80% of all businesses in the city, according to local estimates.
  • Median household income in Kleberg County is about $57,612, versus a higher state average, highlighting regional economic pressures.

Hancock said such local details reflect why small-business support remains a priority. “In a state as big as Texas, it’s important to understand not only the big picture but also the unique regional economies, people and industries that drive our success,” he said.

Why it matters

For Kingsville and the broader Coastal Bend, the new report underscores that

  • Sustained support for existing small businesses is critical — especially in regions where business formation is slower.
  • Local spending has a multiplier effect. Jobs, reinvestment and community stability all stem from a healthy independent business sector.
  • Addressing wage gaps and economic mobility goes hand-in-hand with keeping small businesses strong.

Bottom line

“As we gather with family and friends this Thanksgiving, it’s a fitting time to note how grateful we are … for the small businesses that anchor our communities and keep our economy strong,” Hancock said. The full report is available on the Comptroller’s website.


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