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The UTSA Institute for Economic Development is open for business.
Each of our small business service centers are available to you during this difficult and unexpected time.
One-on-one confidential consulting will continue. We are available to assist you by email, phone, or video conference.
Some traditional classroom-based training/events will be available electronically.
For SBA Economic Injury Disaster Loan information, go directly to www.sba.gov/disaster

UTSA Honors College Promotes Interdisciplinary Learning

UTSA Honors College Promotes Interdisciplinary Learning

Broadband, Markets and the Great Divergence

Broadband, Markets and the Great Divergence

Hard Choices: Green New Deal and SA Climate Ready

Hard Choices: Green New Deal and SA Climate Ready

Reconciling Ecosystem Services with Economic Theory and Policy

Reconciling Ecosystem Services with Economic Theory and Policy

Neoclassical economic theory, which has come to dominate much of the policymaking world,reduces the factors of production to labor and capital. The link between land — or more generally natural capital and ecosystem services – with economy has effectively been severed by neoclassical economic thought. In that aftermath, both policymakers and academics understandably struggle to synthesize economic theory and the environmental sink in a systematic fashion. Read the full article here

Rural Texas Transitions

Rural Texas Transitions

Future of the Region Conference 2019

Future of the Region Conference 2019

UTSA Center for Community and Business Research Releases Eagle Ford Shale Study Highlighting 2014-16 Economic Impact

UTSA Center for Community and Business Research Releases Eagle Ford Shale Study Highlighting 2014-16 Economic Impact

Oil rig counts in the Eagle Ford Shale region began to rise after bottoming in 2016, and are expected to continue rising steadily in 2017.

 

SAN ANTONIO, (June 21, 2017) – Commissioned by the South Texas Energy and Economic Roundtable (STEER), The University of Texas at San Antonio’s (UTSA) Center for Community and Business Research (CCBR) completed the latest Eagle Ford Shale (EFS) study in June. The study titled, “Economic Impact of the Eagle Ford Shale, Business Opportunities and the New Normal” provides new trend data and updated economic impact analysis across 2014, 2015 and, 2016.

Access the Full Study:
“Economic Impact of the Eagle Ford Shale, Business Opportunities and the New Normal”
at bit.ly/EFS_Report2017

Dr. Thomas Tunstall, senior research director for CCBR, which is hosted at UTSA’s Institute for Economic Development, led the study with his team of researchers. “Our report indicates that the decrease in economic impact bottomed out in 2016 and appears to have turned the corner. Oil prices in 2017 are higher and rig counts have risen from their lows last year,” Tunstall said.

After several years of unprecedented growth, the Eagle Ford Shale experienced a sharp decline in oil prices. The decline may have negatively impacted businesses and jobs in the area, however the current scenario offers more job opportunities in the region when compared to past decades of declining population and jobs in several counties in the shale area.

Gross output from Eagle Ford activity across the 21 county area jumped from $87 billion in 2013 to $123 billion in 2014. In the years since the peak occurred in 2014, gross output from Eagle Ford activity fell to $80 billion in 2015, and again in 2016 to $50 billion. And, while jobs supported by the Eagle Ford also peaked in 2014 at 191,153, up from 154,984 in 2013, by 2016, the number of jobs supported had fallen to 108,213.

“Although we experienced a decrease in jobs and economic impact in 2015 and 2016, we continue to see that the oil and gas industry is essential to the livelihood of South Texas. With more than 100,000 jobs and $55 billion in economic output last year, the results of the UTSA study further illustrates the importance of the oil and gas industry to South Texans. The industry in South Texas brought much needed infrastructure along with a sustainable source of income to the area. Sustained growth will further benefit the region through an increased tax base along with increased job and educational opportunities,” said Omar Garcia, president and CEO of STEER.

Since August 2014, the West Texas Intermediate (WTI) oil price dropped from more than $100 per barrel to $43.4 by March 2015, and by February 2016 it was close to $26.2 per barrel. Since then however, the price has recovered and by January 2017 it had reached $53.0 per barrel, signaling important opportunities for future growth as the price more than doubled in less than one year.

Additionally, a variety of industry sectors have also grown in the Eagle Ford area; many, but not all, are directly or indirectly associated with oil and gas activity. In 2015, U.S. natural gas exports to Mexico topped one trillion cubic feet annually – a new record. And, in 2016, U.S. natural gas production reached an annual record of 28 trillion cubic feet.

The Study provides analysis for the 21-county study area as a whole, both the Eagle Ford Shale 15-county core area as a whole (Atascosa, Bee, DeWitt, Dimmit, Frio, Gonzales, Karnes, La Salle, Lavaca, Live Oak, McMullen, Maverick, Webb, Wilson, and Zavala) and the six adjacent counties as a whole (Bexar, Jim Wells, Nueces, San Patricio, Victoria, and Uvalde). The second phase of the Study includes breakouts for all 21 counties individually and compares inter-industry relationships from 2010-2015. The comparison of different multipliers demonstrates how employment and production have been affected in the area.

UTSA and STEER representatives plan on traveling to Eagle Ford cities in late June to discuss the results of the 2017 Eagle Ford Shale Economic Impact Study with community leaders and the general public. The tour follows the Eagle Ford Consortium Inc.’s (EFCI) annual conference, which focused on the ongoing activity of the Eagle Ford and was hosted at UTSA’s downtown campus from June 7-8.

“The Eagle Ford Shale play became a boon to the South Texas economy, and provided an opportunity to boost local infrastructure. Our region is well positioned for a successful future as local area production picks back up. South Texas has become an export leader in the energy products realm. We are committed to continued sustainable growth,” said John LaRue, Port Corpus Christi executive director.

Access the Full Study: “Economic Impact of the Eagle Ford Shale, Business Opportunities and the New Normal” at bit.ly/EFS_Report2017


Center for Community and Business Research: ccbr.iedtexas.org

Institute for Economic Development: iedtexas.org

About the UTSA Institute for Economic Development
The UTSA Institute for Economic Development is dedicated to growing businesses, creating jobs and fostering economic development. Focused on building the economy one business at a time, the Institute consists of 10 centers and programs that provide professional business advising, technical training, research and strategic planning for entrepreneurs, business owners and community leaders. These programs serve Greater San Antonio, the Texas-Mexico border area as well as regional, national and international stakeholders. Together with the federal, state and local governments, and private businesses, the UTSA Institute for Economic Development fosters economic and community development in support of UTSA’s community engagement mission. In 2016, the Institute generated direct regional economic impact of 7,517 jobs, started 591 new businesses, $447 million in new financing, $78 million in new tax revenue and exceeded $1.4 billion in new sales, exports and contracts.

For more information, contact
Jennilee Garza, Senior Communications Coordinator
Institute for Economic Development
Phone: 210-458-2958
jennilee.garza@utsa.edu

Small Businesses and Their Impact on Texas

Small Businesses and Their Impact on Texas

The Office of the Governor contracted with CCBR to investigate the economic impact of Texas businesses with fewer than 100 employees and to identify factors that contribute to their success or failure. In order to achieve this goal, a multi-prong approach was taken that includes:

  • Economic analyses estimating the impacts of small business based on region, industry and size
  • Exploring and analyzing issues of small business ownership, birth and death rates of small businesses and their impacts on job creation and destruction
  • Examining processes associated with export opportunities for small businesses in Texas, as well as providing input from a sample of city managers and economic development directors
  • Compiling a summary of relevant literature identifying potential indicators that may impact small business activity

 

Key Takeaways

  • In 2012, small firms, defined by the Small Business Administration as those with fewer than 500 employees, represented 98.6% of Texas employers. A more useful definition may be SBF100 firms (those employing less than 100 workers) by putting more emphasis on the most entre preneurial sector of the economy.
  • In 2012, SBF100 firms hired roughly 3 million workers and had an estimated total economic impact of $844 billion in gross output.
  • Of these firms, the construction ($68.8 billion), professional-scientific & technical services ($68.1 billion), retail trade ($62.4 billion) and health & social services ($53.6 billion) sectors had the most impact.
  • SBF 100 firms in 2012 generated $13.866 billion in state revenue and $14.965 billion in federal revenue.
  • Studies have shown that SBF 100 firms provided experience and on-the-job training to a broader segment of the population, on average, than larger firms do.
  • Studies have also shown that children of small business owners are more likely to start small businesses of their own.
  • A growing portion of the workforce, known as “giggers”, have found autonomy and increased income by putting their higher skillsets to work in multiple temporary work assignments. This portion is projected to rise, placing growing importance on the need to understand the issues associated with it.
  • Recent studies have shown that job creation does not depend on firm size, but rather on firm age. In other words, newer small firms likely create more jobs (on their way to becoming large firms) than older small firms.
  • Rural areas in Texas, as well as the entire US, are transitioning from an agricultural and manufacturing-dominated economy to a more sustainable and diverse urban-rural interdependence model.
  • Cities with a higher concentration of creative class workers are more resilient in turbulent economic times, but studies point to the lack of focus on negative impacts this has on low-income workers dealing with higher costs of living.
  • Small business development is greatly discouraged by the lack of capital, assets, information, and proper management.

 


Download the Full Report at: http://bit.ly/TXsmallbizimpact2016

Download the Executive Summary at: http://bit.ly/TXsmallbizimpact16_execsum


Where the New Jobs Will Come From

Where the New Jobs Will Come From

The Connection Between Creativity and Entrepreneurship

The Connection Between Creativity and Entrepreneurship