City Council approves small business pitch competition in collaboration with UT

Austin City Council approved a proposal Thursday authorizing Austin Economic Development to partner with TEXAS Entrepreneurship within the McCombs School of Business to develop a small business pitch competition.

The competition will give local small businesses in their early stages — especially those in areas like hospitality, creative industries and health and wellness — the opportunity to present their business concepts to a panel of judges, according to a city agenda item from Thursday.

After pitch coaching and mentorship, 10 finalists will present their businesses at a live event where judges will select winners based on the strength of their ideas and potential for success. Winners will receive a cash prize, though the amount has not been decided. Up to $250,000 will be allocated to the program over the next two years.

Mellie Price, executive director of TEXAS Entrepreneurship, said details about eligibility, application deadlines, award categories and the competition format have not yet been finalized and will be announced when the program’s design is complete.

The competition is intended to support businesses outside Austin’s established technology sector and provide them with funding and other resources to grow, said Xavier Zarate, small business division manager for Austin Economic Development.

“Collectively, (the Austin City Council has) been supportive of our small business community, and this just reinforces that commitment by investing in tools to develop out the ecosystem,” Zarate said.

Price said the City Council chose to partner with the organization because it has experience running pitch competitions and has an established network of mentors and judges. The partnership also builds on the organization’s existing work with local businesses through the Small Business Impact Program, which launched in 2024. Price said the program has grown from $100,000 in its first year to $250,000 this year and has served more than 68 small businesses.

“I don’t think entrepreneurship should end at the edge of the Forty Acres,” Price said. “This is a chance to bring this amazing city of entrepreneurship together with this amazing University entrepreneurship ecosystem for the benefit of our students and our community.”

However, Austin resident Philip Fitzgerald said at the Council meeting he was concerned this competition caters to UT graduate students and businesses that require significant capital, rather than neighborhood businesses like barbershops and food trucks.

“I would really like to see us use this money instead to have a pitch competition provided by the city where we advertise for these types of people with these types of ideas and jobs to help them get their business off the ground because startup costs for a lot of small businesses is out of reach for a lot of people,” Fitzgerald said.

​