When HUB Certification Falls Short
Texas says it supports small businesses, yet recent decisions in Austin and San Antonio tell a different story. The state’s signature program for women- and minority-owned firms remains underfunded and understaffed, and the city eliminated its long-standing 30% subcontracting target without public debate.
What Happened to Texas’ HUB Program
The Texas Tribune reported that the state’s Historically Underutilized Business (HUB) program is struggling to function. The program is supposed to help women-owned, minority-owned, and service-disabled veteran-owned firms compete for state contracts. Instead, staff vacancies, slow certification processes, and inconsistent oversight have made the system unreliable.
The gaps are significant. Key compliance roles were left unfilled. Procurement divisions did not enforce participation rules. Certification backlogs kept firms waiting months for approvals. Many state agencies failed to meet basic HUB goals, and qualified firms lost contract opportunities because the state could not monitor or verify participation.
The Tribune also reported a deeper shift. Texas removed women and minorities from the core definition of the HUB program, a change that narrows the group of businesses eligible for the same level of contracting support. This decision reshapes who receives visibility in state procurement and who does not. For women-owned and minority-owned firms, it marks a major step backward.
For a state with more than three million small businesses, this matters. Texas relies on small firms for employment, economic resilience, and regional growth. When a core contracting program weakens or excludes the very groups it was created to support, the entire business ecosystem feels the impact.
San Antonio Quietly Cut Its Small Business Goal
While the state program faltered, San Antonio made its own quiet shift. The city removed its 30% small business subcontracting goal from final contracts, a policy that had been in place for years.
There was no public announcement, no council briefing, and no notice to the small business community. City officials said they were aligning the language with state procurement rules. Small businesses saw something different. They saw a door close.
The original 30% commitment helped local construction firms, professional services companies, and underrepresented subcontractors win work. Without it, small businesses have fewer protections when competing against large, well-resourced firms. Removing the benchmark shifts power toward the biggest players in the region.
For San Antonio, a city where small businesses make up over 99% of firms and more than 40% of the workforce, this is not a small policy change. It reshapes economic opportunity.
Why These Shifts Matter
Small businesses do not compete on equal ground. They do not have teams dedicated to procurement. They do not have in-house compliance staff. They cannot absorb long delays or unclear processes. Programs like the HUB initiative and subcontracting goals exist to level the field, not tilt it further.
When these systems weaken, the effects spread:
fewer contracts reach local firms
fewer women- and minority-owned firms win bids
fewer dollars circulate in local neighborhoods
fewer small businesses scale into mid-sized companies
And when small businesses lose growth pathways, regional economies lose resilience.
Small businesses Are Already Carrying a Heavy Weight
Small businesses are already navigating rising costs, technology gaps, workforce shortages, and regulatory shifts. Many lack access to affordable capital. Others struggle with digital modernization. Removing contracting support only widens the divide.
These firms need procurement pathways, not additional barriers. Contracting is often the fastest way for a small business to stabilize revenue, hire employees, and grow into the next stage. When access shrinks, opportunity shrinks.
The state’s and city’s decisions arrive at a time when small businesses, especially women-owned and minority-owned ones, are working harder than ever to stay competitive.
Innovation, Capacity, and Support Will Decide Who Survives
Policy shifts highlight a deeper issue. Many small businesses lack the innovation capacity, systems, or training to pivot quickly when opportunities change. They need operational development. They need digital skills. They need stronger strategic planning. Without these tools, they struggle to compete even when the policies are favorable.
Corporate suppliers demand consistent quality. Government contracts require documentation, compliance, and process discipline. Customers expect convenience and technological readiness. Small businesses that lack these systems fall behind, even when they have expertise.
This is where innovation training and capacity-building matter. Not because it is trendy, but because the market now demands it. Businesses need the tools to navigate uncertainty, adopt new methods, and create stronger internal workflows. Those who can adapt will survive. Those who cannot will be left waiting for programs that may never return.
A Changing Landscape Requires New Support Systems
San Antonio and Texas are entering a period where small businesses must build strength from within. Policy support is shifting. Procurement pathways are narrowing. Competition is rising. The organizations that succeed will be the ones prepared for modern demands.
Small businesses do not need slogans or one-day campaigns. They need skills, clarity, and pathways to innovation. They need the ability to build their own resilience, not depend on systems that may not serve them.
Economic development today requires more than attracting big companies. It requires strengthening the foundation, the local firms, family businesses, emerging entrepreneurs, professional service providers, and trades that keep cities running.
For businesses seeking guidance on certification or supplier diversity pathways, the South Central Texas Regional Certification Agency (SCTRCA) offers resources and information to help navigate local and regional contracting opportunities.
If your organization wants support navigating policy changes, building innovation capacity, or strengthening internal systems so you can compete for contracts and new opportunities, Emerge and Rise offers technical assistance. We work with small and growing businesses to build the skills, workflows, and resilience needed in a shifting economy.
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