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Colorado Business Growth Expands in First Quarter

Colorado-State-SealSecretary of State Wayne Williams releases report showing business on the upswing

DENVER, April 21, 2016 — Business formation rebounded in the first three months of the year, reversing two consecutive quarters of decline, according to an economic indicators report released today by Colorado Secretary of State Wayne Williams.

In addition, Colorado employment is projected to expand over the next two quarters of 2016, though at a more modest pace.

The Quarterly Business and Economic Indicators Report, prepared by the University of Colorado’s Business Research Division at the Leeds School of Business, uses data from the Secretary of State’s business registry to report correlations between the data and economic metrics.

The report notes a tight labor market that is leading to a talent shortage and is reflected in the state’s low unemployment rate of 3 percent, according to the most recent state data through February 2016 from the Bureau of Labor and Statistics.

“With small businesses being so important to Colorado’s economy, it is nice to see business start-ups grow once again after two declining quarters,” Williams said.

The state saw 29,680 businesses come online at the start of 2016, up from 23,306 in the fourth quarter of 2015. A total of 104,235 new entities were created during the 12-month period ending in March of 2016, which is a .5 percent  year-over-year increase.

Existing entity renewals in the first quarter totaled 129,832, up from 113,849 last quarter and up 2.8 percent year-over-year. However, dissolution filings also increased to 6,892 in the first quarter from 6,770 in the last quarter. The number of entities in good standing ticked up 5.1 percent year-over-year to a total of 600,617.

 “The rebound in new entity filings is reassuring, following two quarters of decline,” said economist Richard Wobbekind, executive director of CU-Boulder’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.”

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