Why is it that Texas has been able to retain its business attractiveness for such a long period? One of the reasons is the pro-growth policy decisions. The motto of the city is to keep Texas ‘the beacon of opportunities’ and business and political leaders in Texas know that they have to keep this motto going.
After taking office, Gov. Abbott has continued and perhaps even intensified the business-friendly culture that was built by his predecessor, Gov. Perry. In Texas business and industry are working hand-in hand with policymakers to create an open market where business can prosper. Gov. Abbott has used the Texas Enterprise Fund as a ‘deal closing fund’ to attract new jobs and investments to the state, which makes it easier for company decision-makers to choose Texas as the state to relocate their facilities.
The perceived attractiveness of the lone star state is not only influenced by taxes and regulations, but also on migration between states and wise policy decisions; a lot of taxpayers have changed their state of residency to Texas in the past few years. In 2019, more than half a million people moved to Texas.
Another reason for this perceived business attractiveness is industrial diversification. Through industrial diversification, Texas has been able to overcome a decline in economic output resulting from lower oil prices and continues to court companies with its so-called ‘pro-business environment.’