Houston is one of the cities in the United States of America where small businesses thrive. The city traces its roots to the existence of its founders, John Kirby and Augustus Chapman, who convinced people to settle in the mosquito-filled swamps. John and Augustine were brothers who saw opportunities and possibilities in the swampy area in 1836. But the reasons why small businesses do well in the city are not apparent. Thus, this article delves into three categories that are believed to make businesses thrive in the city.
- Availability of experienced human capital
The importance of human capital in entrepreneurship cannot be gainsaid. A population that is educated and skilled is likely to support businesses than the one that is not. Houston has a population of two million people. And each year, it ads 125,000 residents to its list. Luckily most of these new residents are highly educated, and so they guarantee the city of skilled human resources. Also, the city is home to top universities and colleges in the country. The universities are known for quality campus life, and so they attract students from other states as well. These universities offer undergraduate programs that equip students with the much needed entrepreneurial skills. Besides, they are leading the way in teaching students on how they can create business opportunities. Also, technical schools in the area have taken a cue from the universities and strive to equip students with skills that can help them run businesses successfully.
- Technology
Unlike other cities that were affected by the plunge in oil and gas prices, Houston relies on technology industries. So it was not affected by the price fall. Besides the thriving health sector and aeronautics has made the economy to grow steadily. Also, many companies have moved to the city because of a conducive business environment. Furthermore, Houston has in recent years witnessed an increasing number of supportive technology-based companies. Most of the companies are start-ups that provide services to the established companies. So the friendly working relationship between them is believed to be stimulating innovation in the city. It should be remembered that non-profit making organizations like Technology Collaboration Centre bring experts from different industries to the city to address technological challenges. It opens business opportunities and is believed to spur prosperity.
- Availability and Access to cheap capital
The figure for entrepreneurs, especially from the Hispanic community, has doubled in the past two decades. This has been attributed to easy access to capital. Also, the volume of SBA guaranteed loans given to small businesses has grown by over 200 percent in the past 4-5. Besides, SBA is working with the city economic programs and the local chamber to increase awareness on the availability of funds for small businesses. This has led to the growth in the number and the size of start-ups.
There many other reasons that explain why businesses are thriving in Houston. But the availability of human resources, access to cheap capital and technological advancements are the leading ones. So if you are planning to start a sign company, consider starting it in Houston city.
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