Bottom line: Colorado is a premier state for business
By: Development Research Partners, Inc.
Colorado is a top tourism destination, attracting people from around the world for unmatched outdoor experiences. However, the state has quickly made its mark as one of the best places for business due to its well-educated workforce, favorable entrepreneurship and startup environment, national and global business community, and unique quality of life.
Colorado maintained its ranking as a top 10 state for employment growth during 2014. Employment increased an estimated 3 percent in 2014, the highest growth for the state since 2000. The state gained 70,700 jobs in 2014 compared with 2013 and statewide employment surpassed its pre-recession peak in April 2013. Colorado was one of only 13 states to have reached full recovery by that time. Colorado was the third-fastest-growing state in terms of employment in 2013, up from sixth in 2012.
From 2012 to 2013, the state’s population grew 1.6 percent, compared with 0.7 percent nationally, placing among the top-10 states since 2006. Colorado is experiencing demographic shifts in the state’s population, which will have a major impact on the labor force. In 2014, the largest generational group living in the state became the millennials (born 1981-1997) and they are on track to become the best-educated generation in American history.
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The millennials will represent the largest component of the labor force within 10 years. Colorado has ranked among the top-three states for its highly educated population for nine straight years, which is a key component to the success of the Colorado economy.
Colorado is second to none in concentrated talent, making the state a hub for entrepreneurship, innovation and startup activity. The entrepreneurial business environment receives support from dynamic industries, significant financing awards and high concentrations of scientific and research talent. Colorado has the fourth-highest concentration of sole proprietors of the 50 states, and is a top-three state for supporting innovation. Colorado also ranked as the fifth-most entrepreneurial state, and continually ranks among the top states to launch a startup business. Colorado is home to 30 federal laboratories generating an estimated $2.3 billion in annual economic impact.
Colorado provides a competitive tax structure that rewards investment and business innovation. Along with few regulatory burdens, Colorado’s corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax structures in the nation.
Colorado also ranks among the top 20 states for best corporate tax system and business-friendly tax climate, and has the nation’s ninth-best tax climate for entrepreneurship and small business. Colorado is also consistently ranked among the top-five “Best States for Business and Careers.”
A key component of business development and expansion in Colorado is access to national and global business hubs and strong transportation infrastructure. Colorado has 14 freight railroads operating on more than 2,660 miles of track, two Class I railroads, 76 public use airports and thousands of miles of roadway to support the shipping and travel needs of growing companies. Denver International Airport is within four hours flying time of every North American city with a population of 1 million or more and offers nonstop service to more than 170 domestic and international destinations.
SOURCES: Colorado 14ers. www.14ers.com/photos/photos_14ers1.php • Colorado Department of Agriculture. www.colorado.gov/pacific/agmarkets/organic-0 • Colorado Tourism Office. www.colorado.com/articles/colorado-lakes • Development Research Partners, www.developmentresearch.net • Forbes. 2014. “The Best States for Business and Careers.” • Metro Denver Economic Development Corporation. Toward a More Competitive Colorado. • Pew Research Center. The Rising Cost of Not Going to College. February 11, 2014. • Small Business & Entrepreneurship Council, 2014 • The Denver Post. “Colorado ranks No. 1 when it comes to theater, music, museum visits.” January 26, 2014. • The Henry J. Kaiser Family Foundation, 2014 • The Kauffman Foundation. “Kauffman Index of Entrepreneurial Activity.” • The Tax Foundation, 2015 State Business Tax Climate Index. • Trust for America’s Health. The State of Obesity • U.S. Bureau of Economic Analysis, www.bea.gov • U.S. Bureau of Labor Statistics, www.bls.gov • U.S. Chamber of Commerce, Enterprising States Report, 2014 • www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2014/04/kiea_2014_report.pdf