Larger Texas cities, including Houston and Austin, will likely play a significant role in employment opportunities as the U.S. recovers from the coronavirus pandemic.
More than a decade ago, tech startups led the way out of the Great Recession. The industry is poised to play a major role once again creating new jobs as politicians offer economic development incentives.
Three factors for successful startups in a post-pandemic world
Research and policy advisory organization Startup Genome offers strategies for innovative tech companies – primarily those valued at more than $50 million – and policymakers for a successful recovery. They include:
R&D restraint
In the past, tech startups focused primarily on research and development with less emphasis on where they were located and what the local community had to offer.
Today’s success stories put as much emphasis on finding the right location, including intellectual offerings at universities along with the capability for R&D, marketing and opportunities for sustained growth.
Prioritize scaling
The COVID-19 era has shown startups can begin anywhere in the world. But most large tech companies remain concentrated in major metro areas. The key to building a sustainable business ecosystem lies in an infrastructure that encourages steady growth.
While cities will provide the economic development incentives, entrepreneurs should consider all aspects of a community and assess the strengths of the successful startups already there.
Soft-landing incentives
Communities can build a sustainable business ecosystem by paying entrepreneurs to launch startups or relocate their companies as part of so-called soft-landing programs. Cities can also create other advantages for those businesses.
Nearly 10 years ago, Chattanooga, Tennessee, created a high-speed internet hub for the community and added a corresponding program paying companies to move there. Last year, Chattanooga was ranked 36th in Inc. Magazine’s list of best cities in the U.S. to start a business.
Starting off on the right path
While the pandemic has created hardships for many businesses in Texas and across the country, the recovery offers new opportunities for innovative entrepreneurs. Working with experienced business law attorneys is crucial for a growing company’s success.
You need lawyers who understand state and local laws and regulations as well as your company’s unique needs. They can also offer appropriate solutions for business formation, optimizing structures to minimize taxes, raising capital and meeting the other challenges and potential obstacles that new businesses face.