Job growth remains strong, unemployment low and Colorado has the second-highest share of its adult population engaged in the labor force of any state at 69.5%. That ratio is above pre-pandemic levels, and as it moves higher, it should in theory leave a smaller pool of people available to start a business or other venture. But that assumes people who have a job don’t start side gigs.
There isn’t an easy way to get at who precisely is starting a business and why they are starting it, said Brian Lewandowski, executive director of the Business Research Division at the Leeds School of Business at CU Boulder. One clear trend during the pandemic was a big decline in the number of people holding multiple jobs.
It could be that Colorado residents are optimistic about the future and willing to launch a new business, a positive for the economy going forward. Or it could be that people are launching side gigs to create extra sources of income and stay ahead of inflation or prepare for a possible recession. That isn’t as positive a motive but does show a higher level of resilience and preparation.
And the higher counts could also reflect the lower business filing fees the state has implemented, which bring the cost of registering a new business down to $1.