Colorado saw increase in new-business formation in first quarter
After two consecutive quarters of decline, the number of new businesses created in Colorado in the first quarter of the year shot up sharply from the fourth quarter, according to a new report released by Colorado Secretary of State Wayne Williams on Thursday morning.
The quarterly indicators report is compiled by researchers at the University of Colorado Boulder’s Leeds School of Business using data from the secretary of state’s business registry to examine correlations between the data and economic metrics.
The latest report indicates that employment is projected to increase in the second and third quarters, though at a more modest pace than what the state has been experiencing. That’s in part due to a tight labor market that has led to a talent shortage in the state. Colorado’s March unemployment was 2.9 percent.
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Colorado saw 29,680 new-business filings during the first quarter, up from 23,306 in the fourth quarter of last year. For the trailing 12 months ending in March, there were 104,235 filings, an increase of 0.5 percent year-over-year.
Existing entity renewals rose to 129,832 in the first quarter compared to 113,849 last quarter. That’s also up 2.8 percent year-over-year. The report notes, however that dissolution filings also increased in the first quarter, from 6,770 last quarter to 6,892.
“The rebound in new entity filings is reassuring, following two quarters of decline,” said economist Richard Wobbekind, executive director of CU’s Business Research Division. “This is consistent with what we’re seeing in employment growth, the low unemployment rate, and really, a Colorado economy that’s in a general state of good condition.”
