Texas governor Greg Abbott is on defense telling CNBC, the new anti-abortion law will have no impact on the state’s growth in housing tech companies.
He stated that the law is not expected to slow down business immigration to Texas.
Texas is a growing hub for companies – sometimes referred to as a ‘tech mecca’ – it’s home to industry giants like Oracle, Hewlett Packard and Tesla, bringing more than 17,000 tech firms and over 200,000 workers who chose to move from California to Texas, in part because of a lower cost of living and favorable tax laws.
Some fear that Texas’ controversial abortion ban could hurt the industry.
Shelley Alpern from Rhia Venture said, “I think the state of Texas should worry because it has created an extremely unwelcoming environment.”
A poll conducted by an abortion rights group revealed that nearly two-thirds of college-educated workers fear the new law would make it difficult to get a job here. The new law could also have a negative impact on smaller tech businesses.
Future Sight AR CEO Lori-Lee Elliot said, “We might see some of these companies that have decided to open offices or relocate here possibly reverse that decision.”
Bumble and Match, two women-led companies in Texas, have offered financial support to people who are seeking abortions. Salesforce also offers to relocate employees from Texas and their families.
Elliot worries that the Texas law’s negative effects will have ripple effects on smaller businesses like hers.
She said, “It affects small companies like mine that have to hire.” “These companies really help us to attract talent, so we have a strong pipeline of talent from which to recruit.”
Tesla is one of the larger companies that have been silent. CEO Elon Musk tweeted, “I would rather stay out of politics.”
Governor. Abbott says the state’s conservative laws – with no state income or corporate taxes – are still highly attractive to companies.
He stated that the law is actually accelerating the flow of Texas-based businesses.
However, some estimates show that Texas’ new law could be costing the state almost $15 billion each year. This is because it takes women out of the workforce in order to have and care. This includes women of color, young women, and those with disabilities, who are often the least able to work or be unemployed.
Black communities, for example, make up approximately 13% of Texas’ citizens but only 26% of its abortions.
Erika Davies, Rhia Venture CEO stated that “To bring about a blanket law which is actually going to create yet more barriers to access health care in these same communities will only worsen existing problems.”
Davies and her firm invest in women’s-health start-ups.
“There are many reasons companies need to be concerned about it, from liability to simple questions of access and health care,” she stated.
Most businesses have been quiet on the Texas law, but her group is calling on companies — even outside Texas — to step upPlease click here.