In spite of Rockdale’s economic challenges, many entrepreneurs are turning obstacles into opportunity and going into business for themselves.
Darren Veit is a case in point. Veit was a mechanic for Luminant in the mines, before he was laid off last year. He and his wife Cari opened Veit Automotive in January.
“We’d been talking about it for years and (getting laid off) was just enough of a kick in the rear to get it going,” said Veit. “Everyone thinks that the town’s gonna dry up because Luminant’s gone, but Alcoa shutdown and everybody just went on to something else. This town has been here long before all that crap, and it’ll be here long after.”
Veit isn’t the only entrepreneur who feels this way. His is one of 10 new small businesses that have opened in Rockdale since January—three certified public accountants, three restaurants, a clothing boutique, bee farm and real estate company have filed under assumed names with the Milam County clerk’s office.
According to the assumed names certificates filed, small businesses have been fueling the Rockdale and Milam County economy since the Luminant and Alcoa shutdowns.
In the year after the 2008 Alcoa shutdown, 139 new DBAs (doing business as) were filed for Milam County, 27 of those were in Rock-dale. Since that time, Milam County DBAs have been steadily averaging over 120 startups every year. See chart on this page.
Downturns
The list of famous companies founded during economic downturns includes General Motors, AT&T, Disney and MTV. A recession, like the one Rockdalians have been experiencing, speeds up economic churn, according to economists.
“A recent study by Robert Fairlie of the University of California, Santa Cruz found that the proportion of Americans who start a new business each month is on average about half as high again in metropolitan areas where unemployment is in double digits as in those where it is under 2%,” according to The Economist.
Milam County’s unemployment rate was 5 percent in December, according to state figures.
Despite the economic downtick, Idalia and Jessica Castillo opened up Chic and Style Fashion Boutique in Rockdale on Valentine’s Day. Like the Veits, they live in Rockdale and wanted to stay in their hometown, because they don’t want to commute. They are the clever entrepreneurs who The Economist stated “…see an opportunity to set up businesses that give (people) what they want more cheaply or efficiently.”
Idalia agreed, “One thing we know is that people are never going to stop eating or shopping. If I can buy it, I can sell it. Plus, we have a lot of friends and family here.”
They sell clothing and accessories and specialize in handmade jewelry from Guerrero, Mexico.
Entrepreneurs
This entrepreneurial spirit has been part of the Rock-dale way of life since the city’s origins. This town got it start through the enterprising prowess of people like Benjamin and Joseph Lowenstein and E.M. Scarbrough, who opened up businesses in the 1870s, after the completion of the International & Great Northern Railway.
This spurred growth for cotton growers, cattle ranchers, bankers, confectioneries and other goods and services.
This in turn gave rise to other impresarios, most notably Hermann F. Vogel to open mine shafts in 1890s, which grew exponentially.
The Galveston Weekly News reported in 1874: “Our town is daily receiving immigrants and Rockdale no doubt in the near future will be a town of considerable importance.”
Innovation
It’s happening again. Brett Boren moved to Rock-dale from Round Rock and opened up Brett’s Backyard Barbecue in October 2018 and his roadside trailer business has been growing every week.
He chose Rockdale because he saw the potential of US 79.
“I had TxDOT (Texas Department of Transportation) pull the traffic count numbers and 20,000 people a day go through that light,” Boren said, pointing to the traffic light on Cameron Avenue and Wilcox. “This is one of the busiest intersections in Milam County.”
The former Dell employee, knew about the economic hard times of Rock-dale. Alcoa shutting down in 2008, Luminant in 2018, yet he cashed in half his 401k and “invested in myself.”
He’s brought craft barbecue to Milam County and is raising the flavor profile of the food sold in Rockdale.
“He smokes upper choice grade briskets, and gets $22 per pound for them. They’re tender, juicy, and everything you’d want in a Central Texas style brisket,” according to Texas Monthly’s barbecue columnist.
“I couldn’t do it in Round Rock. It would have cost me half a million dollars,” he said of his roadside business venture. “I started planning and talking to the city about the barbecue food trailer and they had no restrictions. It cost me $100 in permit fees. In Round Rock it would have cost $1,000. I couldn’t do this in Round Rock, because they don’t allow trailers in fixed locations. My startup cost was $25,000.”
The Veits also cashed in their 401k and took out a small business loan to invest in themselves.
“As scary as it was, this has been the most fulfilling thing we’ve ever done,” said Cari Veit. “We didn’t want to rely on another company to keep us afloat. Once the rug got pulled out from underneath us was when we realized we needed to be more self-reliant.”
The Veits said they didn’t realize how big Rockdale’s talent pool was before they started their own business.
Darren said he went out of his way to use local people, when renovating the former Ballard Carpets.
Cari said, “We had a very large group of citizens that are very proud and hardworking. They still are here and they’re still hardworking; they’re just finding something else. Pretty much everything we did here we used local people for. Like this reception desk, the guy who built it was laid off from Luminant, and he’s trying to get started doing his woodworking and furniture stuff. The concrete guys we used are from here, the electrician…”
Boren uses local business as well. Because his business is booming, thanks to his location and write-up in Texas Monthly magazine, he is already planning on expanding. He needs to clear brush in order to expand parking and make room to build a stage for musical acts.
He has three full-time employees and one part-time, Castillo’s boutique employs two full-timers and the Veits have two full-timers and one part-time.
These modern-day settlers are reinvigorating the local economy with their startups like the Lowensteins and Scarboroughs did in the 1800s and helping to rebuild the community’s economy and sense of pride.
“You see it a little bit differently from this side of desk,” said Cari about being a business owner. “You really get more of a sense of being invested in the town. Everyone’s a potential customer and you have to be a good steward of the community. It’s kind of our job now.”
“ It cost me $100 in permit fees. In Round Rock it would have cost $1,000 .”
—Brett Boren, restaurant owner
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