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.