Microbusiness in Texas

Alfreda B. Norman Vice President and Community Affairs Officer Federal Reserve Bank of Dallas

Microbusiness represents a growing portion of Texas business

Share of Microbusinesses Rising Percent of businesses that are microbusinesses

90 89 88 87 86 Texas United States 85 2002 2003 2004 2005 2006 2007 2008 2009 2010 SOURCE: U.S. Census Bureau, County Business Patterns and Nonemployer Statistics; Association for Enterprise Opportunity

Micro lending declined after recession

Number of Micro-Loans Originated United States

14 000 000 12 000 000 10 000 000 8 000 000 6 000 000 4 000 000 2 000 000 0 2006 2007 2008 2009 2010 2011

Number of Micro-Loans Originated

200 000 160 000 120 000

Dallas-Plano-Irving MSA

80 000 40 000 0 2006 2007 2008 2009 2010 2011 SOURCE: FFIEC, Community Reinvestment Act Aggregate Report Data

Microbusiness is crucial to employment    Microbusiness employs about 2.5 million Texans Texas has the nation’s largest rural population, with more than 3.1 million rural residents.

Microbusiness represents an even larger portion of employment for rural workers. Percent of Rural Workers Employed by Microenterprise Percent of Urban Workers Employed by Microenterprise Texas United States 26.8

25.4

21.2

21.5

SOURCE: Association for Enterprise Opportunity, Microenterprise Employment Statistics in the United States by Rural-Urban Breakout