< Previous124 TEXAS ECONOMIC DEVELOPMENT GUIDE Japan, South Korea, Taiwan and the United Kingdom to showcase the booming Texas economy and attract more businesses to invest in our great state. As Texas looks toward growing our economy even more in 2025, we will continue to provide leading businesses from across the nation and the world with the opportunities they need to thrive in Texas.” On a January 2024 trip, the governor visited with technology, manufacturing and energy leaders in Mumbai and technology executives in New Delhi, his office reports. While in New Delhi, Gov. Abbott also met with External Affairs Minister of India Dr. Subrahmanyam Jaishankar. Both leaders discussed the continued collaboration between Texas and India across a variety of industries, including semiconductor manufacturing and aerospace technology. In March 2024, the governor was in the United Kingdom, where he met with former Prime Minister Rishi Sunak and signed a Statement of Mutual Cooperation (SMC).The SMC promotes economic growth, supports innovation and encourages job creation in Texas and the United Kingdom. It also prioritizes collaboration in critical sectors such as new and emerging innovative energy solutions, including hydrogen, carbon capture and energy storage; chemicals production; health and life sciences; supply chains and critical minerals; advanced technologies; aerospace; and more. In July 2024, the governor met with company executives, business leaders, foreign dignitaries and government officials in Taiwan, South Korea and Japan. The Taiwan visit included the opening of the State of Texas Taiwan Office to help attract foreign direct investment and job creation into Texas and increase Texas exports into Taiwan and other Asian countries. In 2024, total trade between Texas and Taiwan was $25.6 billion, making Taiwan the sixth-largest total trade partner to Texas. Making a Statement Gov. Abbott also signed an Economic Development Statement of Intent with Taiwan Minister of Economic Affairs Jyh- Huei Kuo. The statement boosts investments, expands trade, spurs job creation and increases innovation in critical industries between Texas and Taiwan. In South Korea, the governor announced that SeAH Group has established a high-performance metal manufacturing facility in Temple, generating $110 million in capital investment and creating over 100 new jobs in Central Texas. He also met with Samsung Electronic Co., Ltd. executives at their semiconductor campus in Pyeongtaek and toured the P1 line in the Pyeongtaek complex. The governor’s Japan visit included a meeting with Chief Cabinet Secretary Yoshimasa Hayashi at the office of the Chief Cabinet Secretary in the Prime Minister’s Office, known as the “ As Texas looks toward growing our economy even more in 2025, we will continue to provide leading businesses from across the nation and the world with the opportunities they need to thrive in Texas. ” — Greg Abbott, Governor of TexasTEXAS ECONOMIC DEVELOPMENT GUIDE 125 Naikaku So¯ri Daijin Kantei. The governor and cabinet secretary explored ways Texas and Japan can continue to strengthen the economic partnership through trade and new foreign direct investments. Gov. Abbott and Aichi Prefecture Governor Hideaki Ohmura signed a Statement of Mutual Cooperation to encourage more trade in critical industries and attract new business investments to Texas. In addition to the new State of Texas Taiwan Office, Texas has state offices in Mexico City and Monterrey, Mexico. Companies south of the border have invested nearly $3 billion in 38 U.S. facilities in the past decade, creating 5,400 jobs. Trade between the two countries totaled about $273 billion in 2023. In August 2024, Gov. Abbott signed a Statement of Mutual Cooperation (SMC) with Governor Manolo Jiménez Salinas of the Mexican State of Coahuila to commemorate the 200th anniversary of the creation of the single state of “Coahuila y Tejas” and bolster the strong economic and cultural ties between Texas and Coahuila. The statement encourages collaboration, increases prosperity in both regions and contributes to the further development of favorable relations between Texas and Coahuila. The statement will also boost investment, trade, and collaboration in critical sectors such as advanced manufacturing, biotechnology, energy, innovation, and entrepreneurial initiatives. 126 TEXAS ECONOMIC DEVELOPMENT GUIDE GOVERNOR’S SMALL BUSINESS FREEDOM COUNCIL S mall businesses are the lifeblood of the Texas economy, playing a crucial role in job creation, innovation and community development. With over 3 million small businesses across the state, they form the backbone of Texas’ economic success, employing nearly half of all working Texans and driving innovation, exports and community vitality. As of 2025, there are approximately 3.2 million small businesses in Texas, representing 99.8% of all businesses in the state. These small enterprises employ about 5 million people, which accounts for 44.3% of all Texas employees. Ask any small business owner whether they’d prefer to be serving their customers or dealing with government red tape and the answer will be self-evident. Unlike large corporations, smaller business operations don’t employ armies of lawyers and accountants but rather rely on their own limited resources and time to navigate complex regulations and compliance requirements. This often puts them at a disadvantage compared to larger corporations and can divert valuable time and energy away from core business operations and growth initiatives. It’s for these reasons that in December 2024, Gov. Greg Abbott announced the formation of his Small Business Freedom Council, which recently delivered a slate of recommendations to cut unnecessary regulations, rules and fees that hamper small business formation, operation or growth. “Texas has long been recognized as one of the best states in the country for business, but sustaining that reputation requires a continuous commitment to removing barriers, streamlining regulations and fostering an environment where small businesses can thrive,” says Adriana Cruz, executive director, Texas Economic Development & & Tourism Office. “The Freedom Council was established to take a comprehensive, data-driven approach to identifying the challenges that small businesses face and proposing practical legislative solutions to enhance Texas’ business climate.” The state looks to slash red tape and regulations. by GARY DAUGHTERS TEXAS TO SMALL BUSINESS: We’ve Got Your Back Texas is home to more than one in 10 of the nation’s Black business owners. Photo by Jeremy Poland: Getty ImagesTEXAS ECONOMIC DEVELOPMENT GUIDE 127 Business Owners Have Their Say To formulate its proposals, the Council embarked upon a comprehensive exercise in listening. In coordination with the Office of Small Business Assistance in the Texas Economic Development & Tourism Office, it surveyed nearly 700 business owners and dozens of state agencies, soliciting feedback on the regulatory, financial and operational challenges that small businesses face daily. Key topics included licensing, permitting, taxation, compliance costs, state agency support and regulatory modernization. Respondents were asked to highlight specific challenges they encountered and propose policy changes that would improve the business climate in Texas. The responses the Council received were frank and far- reaching. A few examples: “Many small businesses need specialized expertise just to comply with reporting requirements, adding costs and administrative burdens.” “Many agency websites lack clear guidance, making it hard to determine exact requirements.” Cruz says the feedback from the survey was invaluable. “Some of the things that we took away,” she says, “are that regulations and fees can increase costs, create delays and discourage investment and expansion. And then, there are processes that can be modernized to improve efficiency.” Help on the Way Released in March, the Council’s report offers numerous recommendations for improvement under headings that include: • Eliminating unnecessary regulations and fees that increase costs and create delays. • Reducing tax and financial burdens to encourage investment and expansion. • Modernizing government processes to improve efficiency and ease compliance. • Enhancing workforce and hiring flexibility to address labor shortages. • Increasing small business access to capital and state contracts to fuel growth. “It’s really a very diverse set of recommendations,” Cruz says, noting that one bit of low-hanging fruit is addressing “duplication of fees or regulations that sort of contradict each other. It’s always very helpful to look at those things and identify ways where we can be as efficient as we can to help support these small businesses.” The National Federation of Independent Business (NFIB) and the Texas Association of Business (TAB) applauded the release of the Council’s recommendations, which are being considered by the Texas Legislature. The NFIB and TAB co-chaired the Council. “Texas is the best state in the union to own, operate and grow a business,” said NFIB State Director Jeff Burdett. “Our governor is committed to ensuring we don’t ever take that for granted — and is instead always thinking of ways to promote greater economic opportunity for Texans. I look forward to working with the Governor and the Legislature to implement these recommendations.” TEXAS IS HOME TO More than 3.3 M small businesses One in five of the nation’s Hispanic business owners More than 1 in 10 of the nation’s Black business owners One in 10 Asian business owners More than 1.4 M women business owners Source: U.S. Small Business Administration128 TEXAS ECONOMIC DEVELOPMENT GUIDE A military veteran-led company is streamlining and improving the way other veterans find and connect to needed services. Houston-based Combined Arms, an investor in the Texas Economic Development Corporation, serves veterans through its innovative technology and by partnering with states to provide a seamless digital platform. Mike Hutchings, CEO of Combined Arms, says the goal of his firm is to provide a one-stop-shop portal for veterans and their families. “We are a Texas company,” he says. “We were founded in Houston, and we are based here. Texas was the first state to partner with us. Combined Arms built the veterans’ portal for the state. It makes sense. Texas is the No. 1 state for veterans.” For Hutchings, this is not just a job. It is his life’s calling. As a U.S. Army Ranger Qualified Parachute Infantry Officer, he served a tour of duty in southern Afghanistan before returning home. In a lifetime of moves, it was another new beginning. “I grew up in a military family and moved all over the world. I lived in Italy and Germany,” he says. “After serving in the Army, I returned home and started my own family. I left the military and went to work at General Electric (GE). While I was there, the Bush Presidential Center put out a call for a Presidential Leadership Program. There were 33 of us in that first Presidential Scholars program. I was one of the very few corporate attendees. The rest were all veteran non-profit leaders.” That’s when Hutchings faced a life-changing question: “What am I doing with my life? I did not feel like I was continuing to serve to the best of my ability,” he notes. “I decided to leave the corporate by RON STARNER Combined Arms invests in helping Texas veterans and in TxEDC. Serving Those Who Served TEXAS EDC INVESTOR PROFILE Hutchings and his team pictured with Aaron Demerson (left), President and CEO of the Texas Economic Development Corporation, and Bonnie Downs (far right), Director of Communications for the Texas Economic Development Corporation. Photos courtesy of Combined ArmsTEXAS ECONOMIC DEVELOPMENT GUIDE 129 world. I had no job lined up, but I was so passionate and knew I would find my way. Other Presidential Scholars helped me. That led me to Combined Arms.” During his time at GE, Hutchings helped the company stand up a new business unit with software, but he wanted to do more. That is where Combined Arms came in. “I was hired to be the chief development officer in 2019. I hit the ground hard in Texas,” he says. “Combined Arms was stood up as a grassroots effort. It was launched in Houston, and it attracted interest from the state. That is when the state came in and asked us to set up this platform for veterans for the whole state. Texas said, ‘We want to be the best state for veterans,’ and that is what we are helping the state do.” Today, every Texas veteran and active-duty guard member can connect with 1,500 social service resources free of charge. “The days of having to do endless Google searches are over,” says Hutchings. Combined Arms Expands to Other States Next came expansion. “We found a way to white label our network and take it across the U.S.,” the CEO says. “The next state was South Carolina and then Virginia. We just signed a contract with New York City, and now we’re talking with five other states.” When asked why he wanted Combined Arms to become an investor in TxEDC, he said: “We are the first non-profit to partner with them. We have a great solution. It has been proven in multiple states. This is a win-win for everyone across the board.” He credits Aaron Demerson, president and CEO of TxEDC, with being “a tremendous leader in this space. This will ensure that Texas stays the No. 1 state for veterans and remains in that spot for a very long time.” As a result of this partnership, notes Hutchings, “we have served over 80,000 veterans in the state of Texas alone. We are a very rapidly growing company. The majority of that 80,000 are veterans who are searching for career services.” Hutchings says veterans love living in Texas because the state “offers a ton of benefits. The Texas Veterans Commission are experts in this. Texas offers incredibly helpful benefits from cost savings to getting help for anything you need. From an economic development perspective, Texas is growing and attracting new investments. That means great jobs can be found in great military- friendly companies. My fellow veterans know that it is lucrative to move here, live here and work here.” The rapid rise of Combined Arms in Texas has enabled Hutchings and his team to collaborate with TxEDC and launch a Shark Tank-like event called Veterans Business Battle. “The leading companies in Texas are part of this,” he adds. “They are warm and receptive to what we’re doing. It was important to elevate what we’re doing to help veterans to the highest level. We have planted our flag firmly in Texas.” “ It was important to elevate what we’re doing to help veterans to the highest level. We have planted our fl ag fi rmly in Texas. ” — Mike Hutchings, CEO, Combined Arms Mike Hutchings is CEO of Combined Arms, a Houston-based nonprofi t that connects veterans nationwide to needed services via an innovative digital platform. Mia Garcia (Middle), Executive Director of the Texas Veterans Network powered by Combined Arms, pictured at the Powering the Future: Texas Energy Summit hosted by TxEDC in Austin. Together, they empower veterans and strengthen the state’s workforce through innovative support programs. Photos courtesy of TxEDC130 TEXAS ECONOMIC DEVELOPMENT GUIDE PHOTO GALLERY Welcome to Trefoil bell tower above Mission Espada, San Antonio All photographs courtesy of Travel Texas, unless otherwise specifiedTEXAS ECONOMIC DEVELOPMENT GUIDE 131 Hueco Tanks State Park in El Paso Mayan Dude Ranch, Bandera Herd of longhorns at Twin Creek Ranch in Willis, Texas Photo by Heather Overman Baylor University Founders Hall in Waco Photo by Heather OvermanNortheast Rim Trail, Big Bend National Park Antique Rose Emporium, BrenhamThe Historic Pearl, San AntonioMedina River, South Central Texas Corpus Christi, Texas Photo: Getty ImagesNext >