Colorado is certainly no stranger to small businesses, and with the amount of tourism that goes on in the state every year, it makes sense why so many people are deciding to relocate there too, with many choosing Colorado over other states to move an existing business or start a new one due to numerous pro-business and quality of life incentives.
The Centennial State is considered to be one of America’s strong economic powerhouses, and it is continually strengthening. Over the past several years, Colorado has been consistently voted as one of the best states for business due to the government’s pro-business approach, a constantly growing economy, booming labor market, supportive communities, manageable business taxation, minimal business regulations, and the natural beauty and outdoor lifestyle everybody desires.
Number of Small Businesses in Colorado
So, how many small businesses are there in Colorado? There are 674,741 small businesses in the state, according to the latest figures (2021) from the SBA.
It is not just Americans and Coloradans starting small businesses in Colorado; the state also attracts a lot of foreign entrepreneurs and investors. It is home to a number of immigrant entrepreneurs that have decided to call Colorado their place of business.
There are 42,844 immigrant entrepreneurs in Colorado that account for 12% of all self-employed Colorado residents.
The following bar graph shows the number of small businesses in Colorado in 2017, 2018, 2019, 2020 and 2021, and also illustrates the percentage increase (or decrease) each year.
Of the 674,741 small businesses in Colorado in 2021, there is a wide array of different enterprises from small, one-person sole proprietorships or LLCs to much larger businesses with several hundred employees. If you want to join the 674,000-plus small businesses in Colorado, it is fairly easy to register a business in Colorado.
Let’s take a deeper dive into the number of small businesses in Colorado by looking at the top industries, business owners, employees, and more!
Latest Small Businesses Statistics in Colorado in 2021
- Small businesses equate to over 99.5% of all businesses in Colorado.
- There are 1,163,586 small business employees in Colorado, which is 48% of the states’ employees.
- In 2020, Small Businesses in Colorado added 25,126 new jobs!
- Small businesses employing 20 or fewer employees created the most job gains!
- International trade is a part of Colorado’s economy, and there are 5,921 small business exporters in Colorado.
- There are more professional, scientific & technical services small businesses in Colorado than any other type – 118,199.
- Real Estate and Rental Leasing firms make up the 2nd largest number of small businesses in Colorado – 78,094.
How Many Small Businesses in Colorado in 2021?
Over 674,000 is a lot of small businesses to be registered in any one state, but when you look at the size of the Cenntenial State, its economic growth, and influence on business, it is not hard to see why so many have chosen Colorado. Compared to the rest of the U.S., the total number of small businesses in Colorado is 2.07% of all U.S. businesses. There are 32.5 million small businesses in the U.S.
Colorado Small Business Growth Over The Past Several Years
The number of small businesses in Colorado has been growing over the past several years. In 2018 there were 611,495, which increased to 630,113 in 2019, representing a 3.04% increase
From 2019 to 2020, the number of small businesses in Colorado rose again, to 653,639. This is the largest increase in percentage terms over the past five years (3.73%) and demonstrates why Colorado has such a strong and growing economy. Lastly, in 2021 the number of small businesses increased yet again to 674,741 (3.22% increase).
Colorado has an awful lot to offer employers and employees, and companies and entrepreneurs from all over the world continue to move to the state. It has a manageable taxation system, low business regulations, access to large consumer markets, international access by land, and air, world-class infrastructure, an extremely strong and evergrowing economy, expanding labor market, brilliant education system, and the quality of life that is hard to come by anywhere else in the nation.
If you would like to download the latest 2020 Small Business Profile on Colorado from the U.S. Small Business Administration, Office of Advocacy, the full Profile can be downloaded here.