EAST WILCO ECONOMY
LOCAL ENTREPRENEURS
Samsung Austin Semiconductor is investing $17 billion in its Taylor plant. Titan Development is building an industrial park in Hutto that will add millions of square feet of manufacturing space. Behemoth businesses dominate conversations about local economic development.
Meanwhile, hundreds of small businesses carry on day to day supporting and stabilizing the growth of their cities – and eastern Williamson County is no exception.
“Your economy is going to be bound by your local businesses,” said Ben White, president and CEO of the Taylor Economic Development Corp. “It’s not as sexy as bringing in 500 jobs from California, but those 10 or 20 companies are going to add five, 10, 15 employees over the next year. They are steady, they are growing, and that’s just as important to a community as anything else that’s going on.”
Indeed, the U.S. Small Business Administration reports small businesses accounted for 65.3% of net new jobs from January 2000 to June 2023. A report published earlier this year by the agency says there are 34,752,434 small businesses in the U.S. compared to 19,688 large businesses (defined as having 500 or more employees).
“When you think of them collectively, small businesses are the largest employer in a community. One of the most important things is they don’t have corporate offices in other places,” said Jan Harris, Main Street Manager for Taylor. “The money they earn as a business and then pay out to their employees stays in that community and continues to turn over. So, it impacts more closely the local economy.”
The benefits of small-town businesses have a long-lasting effect, including enhancing government services, added Daniel Seguin, Taylor communication director.
“Small businesses contribute to city funding in a variety of ways. Without small businesses, those properties they occupy would probably not hold as much value,” he said. “In that way, they contribute to our property-tax base. In addition, when they employ local people, those salaries stay in the community.”
He added, “Those employees buy other goods in the city, they live somewhere and pay property taxes. The contribution of one dollar spent in a small business multiplies in benefit to the community when it is repeatedly kept here and spent here.”
Considering that small businesses contributed to the total $28.7 million of sales-tax revenue the city of Taylor received in 2023 and the $12.9 million Hutto took in, and the importance of a healthy environment for small business intensifies.
SUPPORT FROM CITY HALLS, CHAMBERS
This importance isn’t lost on local elected officials. City governments,
chambers of commerce and economicdevelopment offices support small business through a variety of programs including financial incentives, tax rebates and grants.
“We’ve done a building-improvement grant program focusing on the main corridors of Taylor. We’ve budgeted $200,000 for that program as a matchinggrant program and we’d love to go back to the board and ask for more money if we use it up,” White said.
Hutto’s Economic Development Corp. also has a budget for small business incentives, which is used primarily as grants and includes both new ventures as well as expanding businesses.
“Supporting our small businesses and promoting them is one of the best ways to encourage growth. Knowing that the city values our small-business community and showing it by putting resources into supporting them is having great ripple effects,” said Cheney Gamboa, Hutto director of economic development.
Meg Hiney opened Hutto Wine Bar, 105 East St. in Hutto, in March with help from the Hutto EDC. She said the venture fulfills a 13-year-long dream, and credits the Hutto EDC with helping it come true.
“Hutto’s never had a wine bar before, so it was a great opportunity for myself and the city,” she said.
Hiney submitted a business plan to the Hutto EDC and members reviewed her business model and projected sales. Based on what EDC officials believed the bar would bring to the city in tax revenue, they offered a tax rebate up to $47,000 to help her offset business costs for the first three years starting with a $10,000 cash injection into the venue before it opened.
“It allowed me to pay the permits and (tradespeople) that were helping get it open. Without it, I would have carried a lot of debt through the first quarter of the year,” Hiney said. “It would have been more difficult of a first year for me.”
The bar owner believes many small businesses support a community in a way larger companies don’t.
“Every small business has a mission within itself. It’s not just about welcoming people in for a glass of wine. One of mine is to bring more awareness to females in the industry,” Hiney said. “Wine making is a male-dominated industry, but 80% of my wine is female-influenced, coming either from a female winemaker or a female business owner.”
Giving the spotlight to successful and creative women in the wine industry is important to Hiney, and she said most people who start a business have a similar story they are willing to share with customers.
“What’s the story behind us and why are we here and what are we doing...it’s very easy to find connection with smallbusiness owners just by chatting,” she said.
TAKING A RISK
Hutto Mayor Pro Tem Peter Gordon said companies such as Hutto Wine Bar help diversify the marketplace by bringing businesses reflecting local tastes and are “uniquely suited” to the wants and needs of the populace.
They also create jobs that enable people to work where they live and create ties to their community.
“One benefit is fostering a special community identity. Most of these business owners live where they have established their businesses, creating a close-knit tie to community members,” Gordon said. “These business owners often support local charities at a higher rate than larger businesses, and often support these charities through giving and volunteerism,” Gordon said. “All these things help to enhance the city’s economic health and quality of life and make for a more vibrant community.”
Still, starting a small business comes with risk. More than half of small businesses close in less than five years. The SBA reports in 2022 there were 1.4 million new small businesses opened, while 1.2 million closed.
That trend is reflected locally as well. “I have had 14 businesses come in, and I’ve had 12 businesses go out,” Harris said regarding recent small-business activity in Taylor’s downtown district. Harris said some of the biggest challenges to these outlets are foot traffic – bringing customers in – and rising rents caused by increased property taxes.
While Harris can’t do much about rents, she and others are working to bring more customers downtown. The city is currently developing a downtown master plan that will encourage a more walkable experience with canopies and trees, transportation solutions and other infrastructure improvements.
City leaders are also trying to bring in more businesses to fill empty storefronts.
“We have lost businesses, so we have gaps in the downtown as you’re walking, and people like to come where there is abundance,” Harris said. “So we’re trying to figure ways to still encourage people to come downtown, thinking of events that can bring people to downtown and get them at least outside the stores and then it is up to the businesses to be enticing and get them in the store and into their wallets.”
Events such as the annual Taylor Classic Car Show help showcase what the city has to offer. In 2024, the event brought in 40,000 visitors, with many making repeat trips. In addition, attendees had a median household income higher than the state average, a good sign they are potential shoppers.
IS IT ENOUGH?
But infrastructure improvements, grants and events may not be enough to foster a healthy small-business environment in the face of rising property values and higher taxes, according to Hutto Mayor Mike Snyder.
“Small businesses are the backbone of America. And, in Hutto, the people have overwhelmingly said that support of our small businesses is very important to them. Hutto is doing some things to support our small businesses,” the mayor said. “But, much more can be done. Keeping taxes and fees low is very important to businesses as that represents one of their top three expenses.”
Snyder added, “Lower taxes also allow the public to have more disposable income to spend in our small businesses. As a small-business owner myself, I feel the changes in the economy on a daily basis.”
The mayor consistently advocates for lower taxation. He said all big corporations in America started off as small businesses, another reason for the importance of supporting local businesses and addressing their concerns.
Learning to do business in the prevailing economy and weather changes such as increased rents and taxes are important tools for small-business owners.
Hutto has a business-resource specialist, Emily Betros, who conducts visits and learns about the challenges and successes Hutto’s entrepreneurs are facing and then connects them with resources.
The city also has a BizThrive program which targets key areas of small business including finances, real estate, legal information and marketing to help owners sharpen their skills in these critical areas.
Taylor also offers educational programs to help shops, stores and firms thrive.
“We just rolled out an Upscale Taylor program where we’ll do matching grants for local and small businesses to do an accredited training program to upscale their employees,” White said. “We’ve also set aside $600,000 with Temple College to do a workforce training center that would be geared toward our small businesses as well. We’ve stepped it up a lot for our small businesses.”
Owners taking a chance with small shops and companies are vital to the character of a town, officials said.
“Downtowns and small businesses are the heartbeat of our community,” Harris added. “If you were to be teleported into a dark wood-and-brass-chain restaurant, you might not know if you were in Atlanta or Albuquerque. But there’s only one Lucky Duck (Cafe) Taylor that’s going to have Taylor paraphernalia all over. That kind of uniqueness is important.”
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