NEWSRELEASE

For Release: December 13, 2006
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 06-22 ADVO
Press Kit

Small Business And Economic Development

Study Examines How Small Firms Fare In Houston Area

WASHINGTON, D.C. – Houston’s newer and growing economic subcenters have relied more on small business as their cornerstone than the older Central Business District and the Galleria area, according to a report issued today by the Office of Advocacy of the U.S. Small Business Administration. The report’s findings also suggest that while small firms support urban economic growth, as development proceeds they grow substantially.

“Houston’s history of economic growth offers some interesting lessons for the rest of the country,” said Thomas M. Sullivan, Chief Counsel for Advocacy. “Its experience shows that encouraging small firm growth plays an important role in urban economic development.”

Released during a luncheon sponsored by the Greater Houston Partnership, The Economic Role of Small Businesses Using Large Data Sets: An Analysis of the Contributions of Small Firms to Urban Growth, written by University of Houston researchers Steven Craig and Janet Kohlhase, with funding from the Office of Advocacy, examines the evolution of the urban economy into employment subcenters around the city.

Among its findings, the report documents that the newer subcenters have been economically diverse, as most broad industrial classifications were well-represented in each subcenter. Moreover, the authors interpret their evidence to suggest that small firms are a crucial element in urban economic development as their success is likely to lead to economic growth for the entire local economy.

The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.

For more information and a complete copy of the report, visit the Office of Advocacy website at www.sba.gov/advo.

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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit www.sba.gov/advo, or call (202) 205-6533.