TEXAS
Implemented by Law or Executive Action
In 2025, Representative Caroline Harris Davila sponsored House Bill 346, which streamlines processes and reduces barriers for those starting and growing a business. The bill empowers the Secretary of State to charge competitive fees for businesses that want expedited filing and record services in the state. This will provide more assurance to potential new businesses that the state will welcome them with open arms. Additionally, the bill eliminates the state franchise tax and certain filing fees for veteran-owned businesses. The engrossed policy that passed in the House in 2025, reflected many of the same policy ideas that Representative Harris Davilla proposed in the House in 2023.
Introduced
In 2023, Representative Caroline Harris Davila sponsored House Bill 4934, which called for the Secretary of State to work with appropriate government entities to eliminate all fees relating to licensing and registration required to be paid by a business entity in the entity’s first year of business; encouraged 5% of economic development funding go to programs supporting businesses under 5 years old; encouraged 5% of government contracts go to businesses under 5 years old; encouraged 5% of workforce development funding go to programs or organizations supporting businesses under 5 years old; provided tracking and reporting of metrics around government contracting for businesses under 5 years old; provided tracking and reporting of metrics around economic development funding for businesses under 5 years old; and provided tracking and reporting of metrics around workforce development funding for businesses under 5 years old.
In 2023, Representative Caroline Harris Davila sponsored House Bill 4937, which would require tracking and reporting of metrics around government contracting for businesses under 5 years old. Additionally, the bill called for recommendations to be made to improve access by new businesses to state contracting, including new businesses owned by statistically underrepresented demographic groups and in statistically underrepresented geographic areas of the state.
In 2023, Representative Caroline Harris Davila sponsored House Bill 4938, which called for the Secretary of State and other appropriate government entities to work to eliminate all fees relating to licensing and registration required to be paid by a business entity in the entity’s first year of business.
In 2023, Representative Caroline Harris Davila sponsored House Bill 4936, which called for the State Comptroller to make reasonable efforts to increase the number of government contracts to be awarded to new businesses to at least 5%.
New businesses create almost all net new jobs in the United States. Entrepreneurs create stronger communities, grow GDP, create homegrown jobs, increase community wealth, diversify goods and services, increase lifetime incomes, and fight inequality and poverty.
65% of Americans believe it's harder to start a business today compared to their parent’s generation. 94% of Americans believe “it’s important to America’s future” that citizens have a fair opportunity to start and grow their own businesses. 81% of entrepreneurs say that the government favors big businesses over them, and 69% say the government doesn’t care about them at all.
Streamlining processes and removing barriers and unnecessary burdens for new, young companies to start and grow is critical to expanding entrepreneurial opportunity for all.
Many states are realizing the importance of new, young businesses to their economic growth and are working to change and update policies.
Your State Needs Entrepreneurs.
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Right to Start shares best practices to help policymakers support entrepreneurs. We are a leading, national nonpartisan civic organization working to expand entrepreneurial opportunity for all throughout the United States by changing minds, changing policies and changing communities. Our policy recommendations are pro-growth measures, which will remove barriers and streamline processes to starting, cut red tape, advance homegrown job creation, and build a stronger connection between entrepreneurs and government.
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