What can British business leaders learn from Texas?

Texas is a success story that should be at the top of the reading list for British business leaders. There is a wealth of best practice to draw out of their approach to growth, from business leaders and innovators, but also from government officials and the state political leaders driving the strategy. This know-how can be used to fire up regional growth in the UK. At the CBI, we believe in learning from others and sharing best practice and invite you to sign up for our 3-day leadership programme Unlocking Regional Growth – a US case study, taking place in Austin and Houston in November.

Why Texas is a an excellent case study for levelling up

Regional growth, or levelling up, however you choose to label it, is a policy that will underpin the UK’s ability to drive economic growth. There’s no doubt that we have clusters, regions and nations in the UK that are already creating tailwinds and delivering great results. But there is so much to be learned from other economies, and recently our interest has been well and truly captured by what is going on over the pond, in the great state of Texas.

This is a state where business goes big. The ninth largest economy in the world, as measured by GDP. For context, that’s bigger than Brazil and closely rivalling Russia. It’s the home of 54 Fortune 500 headquarters, more than 1,600 foreign-owned companies and 2.7 million small businesses. A civilian workforce of 14 million, 148 higher education institutions. But big doesn’t mean expensive. Texas has established itself as one of the lowest cost states to do business, with a low tax burden and business friendly regulation.

The sheer scale and size of Texas creates variety and diversification, which in turn generates prosperity across the state, to the benefit of all. Houston is an international leader in energy, healthcare, aerospace, and tech. State capital Austin is home to a diverse and fast-growing range of high-tech sectors, with big investments recently from Tesla, Oracle and Apple. Dallas-Fort Worth is well known for its low cost, low tax, high quality business operating environment, and is a magnet for corporate and professional services.

Is cross-sector collaboration and vision enough to succeed?

This is a state that is open for business and using its resources to actively seek new business start-ups, corporate expansions, and relocations. Enablers such as the Skills Development Fund support employers to train their employees with the skills for today and future roles. There has been significant investment in transport and infrastructure to enable trade. There is a clear sector strategy, with public, private, and academic leaders aligned to develop competitiveness in these areas.

Behind the impressive headlines and stellar performance statistics, there is a story to be discovered, about how the state has achieved its success so far. It’s a story of business and government collaboration, of creating a vision and bringing stakeholders together to achieve this. It’s a story of patience, focus and dedication to the strategy over a time period that transcends political cycles. All wrapped up in the American x-factor, that deep rooted self-confidence and unwavering belief that their goals are achievable.

If you want to immerse yourself into the state and see best practice in action, sign up for our leadership programme Unlocking Regional Growth – a US case study taking place in Austin and Houston, 7-9 November 2022. Contact Emma Connolly, Head of Leadership Programmes, for further information.