An expert from the U.S. Small Business Administration shares in an op-ed how critical women-owned businesses are to small business exports in Texas. Photo via Getty Images

Everything is bigger in Texas, including its small business ecosystem. There are over three million small businesses in the state, which represent 99.8 percent of all Texas businesses. However, according to the latest official U.S. Census Bureau data on small business exporters (2020), only 35,124 Texas-based companies exported goods abroad.

During my time in the Administration, I have had the opportunity to visit Texas on several occasions, including trips to Houston, San Antonio, and El Paso. Like most everything in Texas, the entrepreneurial ecosystem is sizable and a rich source of opportunity and ideas. But with over a thousand miles of shared border with Mexico, and considerable trade infrastructure like the Port of Houston, you can’t tell me that just 1 percent of Texas small businesses are exporting their products or services. This data, which mirrors the published trend for small business exporters nationwide, seemed severely undercounted. So, we endeavored to dig into what was going on.

As a result, the Office of International Trade (OIT) commissioned a study to determine the total addressable market (TAM) of small business exporters. The research dug deep into available public data and private surveys, which better accounted for smaller shipment values and growth in service exports. Among the key findings from the study is new data that places the actual number of exporting small businesses at 1.3 million – an almost fivefold increase over the estimates previously published by the Federal Government. Interestingly, minority, women-owned firms were found to over-index in selling abroad. The research also revealed a high concentration of certain tradeable sectors ranging from consumer, industrial, and other manufactured goods to services businesses in software, architectural, and engineering sectors. Ultimately, the study estimated the potential market size, or total addressable market, at over 2.6 million small businesses.

With the proliferation of digital commerce tools and with over 95 percent of the world’s consumers living outside the United States, international sales represent a rich growth opportunity for small businesses. Indeed, businesses that export are more resilient, expand faster, and create higher paying jobs for Americans.

My colleague, District Director Tim Jeffcoat agrees. With his finger on the local pulse of the Houston-area economic market, he knows that exporting can be both an enormous growth opportunity, but at the same time filled with a daunting set of challenges to navigate. In his

Houston area network alone, they have over 200 advisors, mentors, and counselors that can guide you to develop a robust exporting plan, connect you with capital to fund your overseas expansion, and can even help you pursue a competitive grant to kick-start international sales.

This is exactly the case for Pat Hartmann, founder of Hartmann’s Inc., an Abilene, TX-based woman-owned small business. As a manufacturer of high-quality parts from state-of-the-art metal fabrication and welding departments, Hartmann has leveraged international sales to grow her company over three generations. In her words: “exporting has allowed us to become competitive in multiple markets throughout the entire world. It has diversified our knowledge base allowing us to work in manufacturing situations that span multiple types of standards including European and Japanese. Exporting now makes up 20 percent of our sales.”

As a result, Regional Administrator Ted James and I are among the many Administration officials who are pleased to recognize Pat Hartmann of Hartmann’s Inc. as the 2023 South Central Regional Exporter of the Year. She has established herself as a personal and professional role model due to their expansion and contributions to the community. We are confident that small businesses like these, as well as those identified in our Total Addressable Market study, can start and continue to leverage SBA resources to scale their business and access international opportunities, just as Hartmann did.

Pat Hartmann is one of the more than 11 million female founders the SBA is recognizing during Women’s History Month this March. While the post-pandemic recovery has complicated the economic landscape, we continue to better understand the important role women-owned small businesses play in our entrepreneurial ecosystem. They continue to contribute substantially to the national economy, showcasing innovative solutions and trailblazing techniques to lead the way forward.

If you are a current or future entrepreneur looking for assistance in how to get started or grow internationally, contact the SBA’s Office of International Trade or our network of 68 district offices which offer access to counseling, access to contracts, and access to capital.

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Gabriel Esparza is the associate administrator for the Office of International Trade at the U.S. Small Business Administration.

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Houston engineers develop breakthrough device to advance spinal cord treatment

future of health

A team of Rice University engineers has developed an implantable probe over a hundred times smaller than the width of a hair that aims to help develop better treatments for spinal cord disease and injury.

Detailed in a recent study published in Cell Reports, the probe or sensor, known as spinalNET, is used to explore how neurons in the spinal cord process sensation and control movement, according to a statement from Rice. The research was supported by the National Institutes of Health, Rice, the California-based Salk Institute for Biological Studies, and the philanthropic Mary K. Chapman Foundation based in Oklahoma.

The soft and flexible sensor was used to record neuronal activity in freely moving mice with high resolution for multiple days. Historically, tracking this level of activity has been difficult for researchers because the spinal cord and its neurons move so much during normal activity, according to the team.

“We developed a tiny sensor, spinalNET, that records the electrical activity of spinal neurons as the subject performs normal activity without any restraint,” Yu Wu, a research scientist at Rice and lead author of the study said in a statement. “Being able to extract such knowledge is a first but important step to develop cures for millions of people suffering from spinal cord diseases.”

The team says that before now the spinal cord has been considered a "black box." But the device has already helped the team uncover new findings about the body's rhythmic motor patterns, which drive walking, breathing and chewing.

Lan Luan (from left), Yu Wu, and Chong Xie are working on the breakthrough device. Photo by Jeff Fitlow/Rice University

"Some (spinal neurons) are strongly correlated with leg movement, but surprisingly, a lot of neurons have no obvious correlation with movement,” Wu said in the statement. “This indicates that the spinal circuit controlling rhythmic movement is more complicated than we thought.”

The team said they hope to explore these findings further and aim to use the technology for additional medical purposes.

“In addition to scientific insight, we believe that as the technology evolves, it has great potential as a medical device for people with spinal cord neurological disorders and injury,” Lan Luan, an associate professor of electrical and computer engineering at Rice and a corresponding author on the study, added in the statement.

Rice researchers have developed several implantable, minimally invasive devices to address health and mental health issues.

In the spring, the university announced that the United States Department of Defense had awarded a four-year, $7.8 million grant to the Texas Heart Institute and a Rice team led by co-investigator Yaxin Wang to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation.

That same month, the university shared news that Professor Jacob Robinson had published findings on minimally invasive bioelectronics for treating psychiatric conditions. The 9-millimeter device can deliver precise and programmable stimulation to the brain to help treat depression, obsessive-compulsive disorder and post-traumatic stress disorder.

Houston clean hydrogen startup to pilot tech with O&G co.

stay gold

Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

“This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

“With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes an e-commerce startup founder, an industrial biologist, and a cellular scientist.

Omair Tariq, co-founder and CEO of Cart.com

Omair Tariq of Cart.com joins the Houston Innovators Podcast to share his confidence in Houston as the right place to scale his unicorn. Photo via Cart.com

Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

Cart.com was co-founded by CEO Omair Tariq in October 2020. Read more.

Nádia Skorupa Parachin, vice president of industrial biotechnology at Cemvita

Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Read more.

Han Xiao, associate professor of chemistry at Rice University

The funds were awarded to Han Xiao, a chemist at Rice University.

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories. Xiao will use the five-year grant to advance his work on noncanonical amino acids.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement. Read more.