Why Donald Trump is good for Startups in Houston


Why Donald Trump is good for Startups in Houston  

In a past presidential debate with Mitt Romney, President Obama considers Donald Trump a “small Business” compared to Mitt Romney; after all, it’s all business income. The Trump Organization employs more than 22,000 people, with other companies employing fewer than 500.

So, is Donald Trump a small Business?

The federal government recognizes small businesses as those that employ fewer than 500 people, so in a sense, he is a small business. Small business doesn’t mean small profits, though; IRS reports on the highest income people show that out of the top 400 people grossing $19.8 billion in S corporation and partnership net income in 2009, 237 of them count as small businesses.

Small business facts

Small businesses in U.S. face different challenges depending on business type. Here are three facts about startups.

•  Business startup rate is down over the past three years following the recession.

Employer establishment births are 12% down from 844,000 to 742,000. 85% of these are startups while 15% are a new facility for expanding businesses.

•  New employer firms face significant challenges due to the recession.

The rate of new startups in the second quarter of 2008 is below 3%, a record that is shocking since the first records in the early 1990s.

•  Startups are counting fewer jobs than the past.

Comparing mid-2011 to the first quarter of 1999, though startups are at a similar level, employment stands at only 45%. Startups are smaller in scale, and they employ fewer employees compared to the 1990s.

recent study in 2016 reveals that startups account for a big proportion of job creation. Additionally, high growth firms are likely to be young startups than mature businesses- which disproportionately create jobs, output, and productive growth. It’s often misleading to measure the success and growth of a startup by its ability to create jobs; There’s little knowledge about their output and productivity growth.

Startups are a potential powerhouse of immense growth opportunities for Americans; Donald Trump is the best man to tap into that potential. Here are four things that Trump is likely to do for small businesses.

1.  Easy access to funds, loans, and grants

Despite being a successful businessman, Mr. Trump is not a fan of regulations. Bureaucracy slow investment into startups and deter the very people that SBA is intended to help. He is likely to simplify this process and ease down on borrowing regulations to boost the startup market.

2.  Control SEC rules on who qualifies as an “angel.”

Given the failure rate and high-risk nature of investing in a business startup, angels are crucial In providing early stage seed capital startups. SEC regulations significantly reduce the pool of accredited investors and hence disadvantage the startup ecosystem.

3.  Fund state economic development organizations that support entrepreneurship.

These organizations are already on the ground, with the infrastructure, personnel, and available systems to identify, support and incubate startups. Increasing funds from the federal government should give them a much-needed boost, increasing the overall chances of success.

4.  Promoting women-owned businesses

All women-owned businesses, not just those that meet special conditions, make a notable contribution to the U.S economy. Making the regulations less inhibitive is likely to increase startups by women.

Houston startup scene

Startups are bursting on the scene with Houstonians getting more innovative with energy and life sciences and driven by technology. It is no wonder then that most startups are tech and energy ventures.

The Houston Technology Centre, named by Forbes as one of the tech incubators changing the world with their HTC Client Acceleration program; provides education, insight and the access to capital for commercially viable startups. Each firm gets special attention according to their unique needs.

HTC’s Accelerated Pathway follows an applicant-candidate-client-advanced client-graduate sequence. Graduate startups that have launched successful businesses include:


AGENTS.NET website leverages its yellow pages platform to provide agents in real time, the opportunity to scan prescreened, targeted and qualified leads, while at the same time giving consumers multiple agents from which to evaluate their options based on their preference.


This startup offers an immunotherapeutic approach for the treatment of cancer. Using their knowledge of the signaling pathways that regulate the immune response, they can alter the potency and duration of the response.


Davidson designs and manufactures special fiber optics to suit the harsh industrial applications; their patent-protected fiber optic sensing technology ensures a safe, reliable and cost-effective production of systems.


Corinnova Inc. is a biomedical device company that develops technologies that lead to heart recovery.


This integrated suite comprises visualization tools for mapping, economic valuation, charting, reservoir analysis, data management tools and auto-email monitoring; these generate data such as sales volume, wellhead pricing, monthly production volumes and leasing activity.

Houston startups are clearly important avenues for revenue collection, both to the entrepreneur and the federal government. Supporting such systems that accelerate the startup growth is likely to be top on Mr. Trump agenda on Making America Great Again.