Earlier this month, research data provided by the business consulting firm Venture Smarter named Colorado in the top 10 of best states to start a business, as it tied for 8th place with Hawaii.
The list, titled “The Best States for Business Growth,” name Georgia as the best state, followed by Virginia and Arizona in second and third place, Washington labeled as the worst state to start a business.
The data analyzed and documented by Venture Smarter was obtained from the U.S. Bureau of Labor Statistics, and was analyzed based on data in business establishments from December 2021 to December 2022.
Colorado was ranked in eighth place with Hawaii because of their business growth rate of 9.10% from 2021 to 2022. Venture Smarter attributed their rapid growth to their low filing fee for a business starting as an limited license company.
The fee to start an limited license company in Colorado is $50, with the additional cost of $10 per year. According to LLC University, it costs an average of $132 to start a limited liability company in the United States.
In 2022, Colorado’s GDP was $371.3 billion, up 2.4% from 2021. The top industries in Colorado are professional, scientific and technology service, real estate rental and leasing, construction, other and retail.
LLC Services’ small business statistics reported that out of all businesses, 44.5% are owned by women and women also account for 46% of workers in the state.
That is seen evidenced in Cortez, where local boutiques Love on a Hanger, The Station Boutique and Merriweather Home + Market all owned by local women Tiffani Randall, Kara Lynch and Erin Hanson.
The Colorado Chamber of Commerce and Small Business Administration reported in May 2023 that there are 691,230 small businesses in Colorado, which account for 99.5% of all businesses in the state and contribute 1.2 million workers to the economy.
Additionally, 36% of small businesses in the state are only five years old or younger. In July, Colorado unemployment was at 2.9%, while the national average was 3.5%.
When asked about the business growth and favorable environment for businesses, Colorado Secretary of State Jena Griswold emphasized how the state facilitates growth.
“My office is focused on supporting economic opportunity for all Coloradans. We work to cut red tape, add protections for businesses and provide new opportunities for hardworking Coloradans,” Griswold told The Journal. Colorado continues to be a great place to not only start a business, but to stay in business. I’m very excited to see our business community continue to thrive in every corner of the state.”
The No. 1 state to start a business, according to Venture Smarter is Georgia, which has a business growth rate of 13.50%. In December 2022, there were 397,515 businesses in the state compared with 350,189 in December 2021.
Georgia also has a corporate income tax that is set at a rate of 5.75%, with the state also “offering job tax credit to reduce corporate tax liability for eligible businesses.”
Washington is the worst state to start a business according to data, and it was shown to have the worst business growth rate of minus 16.80%.
The state had 284,440 businesses in December 2021, and that number sharply decreased by 47,644 in December 2022 to a new total of 236,796.
Washington was the only state to witness a decrease in business establishments.
