Colorado is tops in the nation for women to lead their own startup businesses, a recent report determined.

The “Best States For Women-Led Startups in 2021,” published by small business reviewer Merchant Maverick, examined opportunities for women to launch and lead companies throughout the 50 states using criteria such as the percent of businesses operated by women, how many workers those companies employed, salary levels, company longevity and venture capital dollars invested. 

Colorado “ranks highly when comparing female business leaders to their male counterparts. 27.7% of employer firms in Colorado are led by women (fifth nationally) and 19.9% of employees in the state work for women-led firms (eighth nationally),” the report said. 

The Front Range, including the Boulder Valley and Northern Colorado, is particularly dense with female-led firms, particularly in industries such as outdoor and fitness apparel, and natural and organic products, according to Merchant Maverick special projects editor Jared Beilby.

Colorado’s robust VC environment went a long way toward pushing the state up in Merchant Maverick’s rankings, Beilby said. According to the report, women-led firms in the Centennial State have racked up $485 million in venture capital over the past five years. 

“States that do well on this report are going to have a pretty solid economy as a whole,” Beilby said.

The top 10 states for women to lead their own businesses, according to Merchant Maverick, are:

1. Colorado
2. Washington
3. Virginia
4. Florida
5. Montana 
6. Texas
7. Oregon
8. Alaska
9. California
10. Maine

Mississippi was ranked dead last.

While the report highlights the success some states have seen in boosting entrepreneurship opportunities for women, it also proves that a gender disparity still exists in the startup world. 

“We’re definitely trending in the right direction but there’s still a lot more work to be done,” Beilby said.

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