It is no secret that Colorado has much more to offer than its endless amount of outdoor activities and natural beauty. The state has built an incredibly solid business and economic environment over the years and is truly reaping the rewards today, being constantly praised for its pro-business climate and economic stability.
Entrepreneurs and aspiring business owners are provided with an abundance of business help and resources by the Colorado Office of Economic Development and International Trade, such as incentives, grant and investment programs, access to business loans, and business development centers.
If you register a new company in Colorado, you will be presented with many helpful programs, such as the Boomtown Accelerator, Techstars, Colorado Small Business Development Centers, to name a few. The links to these resources are at the bottom of the page for your reference.
Colorado now finds itself sat in 16th out of all 50 states for GDP, which is hugely impressive due to the state’s comparatively average population size. This pays tribute to the state’s economic power and influence, and when boasting a world-class education system, one of the best employment rates in the nation, solid infrastructure, and over 653,000 small businesses contributing to the economy it comes as little surprise why Incfile has Colorado in 4th place for the best states to start a business (2020).
Colorado-based businesses also enjoy one of the lowest corporate tax rates in the entire nation, which also contributes to the state’s business-friendly reputation.
Small businesses in Colorado play a massive role in the state having such a strong economy, with 99.5% of the Centennial State’s businesses being considered “small”.
Many other states rely on the much larger businesses with 500 or more employees, demonstrating Colorado’s business-friendly environment, especially when helping small businesses thrive, which directly influences the powerful economy.
Additional Economic Facts About Colorado
- What is Colorado’s main economy? It is the No.1 State in private aerospace employment concentration.
- Denver, CO was rated as the 2nd best place to live in the U.S. by the US News & World Report.
- Colorado’s GDP (Gross Domestic Product) reached over $351 billion in 2020.
- The minimum wage in Colorado is $12.32 per hour.
- Colorado’s sales tax rate is 2.9%.
- There are 11 Fortune 500 companies currently based in Colorado.
- Colorado’s GDP growth rate between 2014-2019 was around 3.6%.
- Colorado’s business growth rate between 2014-2019 was approximately 3.2%.
- Access to 3 million+ labor force.
- Colorado has one of the best education systems in the nation, with 51.1% of the state being college-educated.
- Colorado has the 7th best public health care in the United States with the 5th best health care quality.
- Construction is one of the largest economic contributors in the state, with $6.5 billion spent in nonresidential construction from 2014-2019, which represents a growth rate of 9.4%.
- The income tax rate in Colorado is a flat rate of 4.63%.
- Residential construction accounted for $10.2 billion between 2014-2019, representing a 9.6% growth rate.
- Colorado has one of the highest employment rates out of all 50 states (4th).
- Immigrants play a huge role in Colorado’s economic success, with over 42,000 immigrant entrepreneurs operating within the state.
- The United Health Foundation has voted Colorado 2nd for the most active US state in 2020.
Colorado is still the home of many large, international companies and franchises, which in return contribute tremendously to the state’s impressive economic strength.
What is the Largest Employer in Colorado?
- JBS USA
- Catholic Health Initiatives
- The Anschutz
- Red Robin
- Chipotle Mexican Grill
- Teletech Holdings
- DaVita
- Pilgrim’s Pride
People decide to call Colorado their new home, and place of work and business for an abundance of reasons, with the main contributing factors being healthcare, education, and economic opportunity.
Typical facts about Colorado include stunning mountain ranges, some of the best landscapes in the U.S., amazing towns, unique and diverse cultures, awesome cities, and a history that stems all the way back to the European settlers, which does make Colorado such an intriguing and subsequently popular place to live.
Business Facts About Colorado
With the multitude of brilliant opportunities presented to aspiring entrepreneurs, business owners, and employees, Colorado is the perfect place for business, which is evident in the state’s pro-business approach, and economic strength.
Despite already having one of the most stable economies in the nation, Colorado’s economy is growing continuously, with small businesses driving this growth. Small businesses in Colorado account for 2.06% of all U.S. small businesses.
These small businesses (and large businesses) thrive within the state due to access to business resources, capital investments, free advisories, and access to large consumer markets.
Here Are Some More Business Facts About Colorado
- Ranked the 4th Best Business Environment in the US (U.S. News & World Report – 2019).
- There are over 653,000 small businesses in Colorado.
- Out of these small businesses, Colorado is home to 1,140,757 small business employees.
- The corporate income tax rate in Colorado is a low 4.55%.
- Colorado is home to a diverse and incredibly skilled labor market.
- Forbes ranked Colorado as the 4th best state to start a business in (2020).
- Small businesses make up over 99.5% of all Colorado businesses.
- 6th Highest New Business Birth Rate – US News & World Report.
What is the Biggest Industry in Colorado and What is a Good Business to Start?
The largest small business industry in Colorado regarding employment share is the accommodation and food service industry, with the largest industry in terms of the number of firms being professional, scientific, and technical services (122,922 total small business firms).
In terms of industries in Colorado, the most significant/businesses with the biggest contribution in more ways than one are agriculture, manufacturing, and tourism. All of these industries hold massive significance within the state for a number of reasons, from job creation to GDP contribution.
Doing business anywhere is a tall order, with many different rules and regulations you must abide by, statewide, and on a national scale, especially somewhere with the business profile of Colorado, making it an incredibly competitive environment.
However, for those looking to start a business in Colorado, here are three industries we believe would thrive within the Centennial State:
Fitness and Wellness Centers – Fitness has taken the world by storm in recent years, with health and wellbeing added to the top of the priority list of many. Colorado is already an extremely active state, making it the perfect place to open up gyms and fitness centers
Day Care Services – Most families consist of both parents having work and business commitments, which leaves little time to look after children for parents and especially younger families, opening up a Day Care center will help alleviate unwanted stresses that parents go through.
Marketing and Ad Agencies – With the current surge in online business, it is a no-brainer to get the correct marketing and advertisement done for your business, whichever niche it is in, because, as the competition rises, the customers/clients will decline unless you have a great marketing strategy.
Resources and additional information on Colorado’s economy and business climate
Business and economic support programs
Additional resources
