New business filings forecast job growth in Colorado

The latest analysis of new business filings in Colorado forecasts continued job growth through the fourth quarter of this year and the first quarter of next year.

Rick Wobbekind
Rick Wobbekind
Scott Gessler
Scott Gessler

Nearly 28,000 new businesses registered with the secretary of state during the third quarter — an increase over the second quarter of this year, the third quarter of last year and the fastest growth in filings since at least 2006.

“The increase in virtually all categories of filings supports the sustained growth currently observed in the economy and forecasted for the next two quarters,” said Richard Wobbekind, executive director of the Business Research Division of the Leeds School of Business at the University of Colorado in Boulder.

The division compiles its quarterly business and economic indicators report using information from the secretary of state’s central business registry. Research indicates a strong correlation between new business filings and nonfarm employment.

Part of the increase in third-quarter filings for new businesses was attributed to a “fee holiday” implemented July 1 reducing the cost of online filings for new businesses from $50 to $1.

“Our fee holiday focused on encouraging entrepreneurs and small businesses to take the first step to starting their business,” said Colorado Secretary of State Scott Gessler. “This report speaks to the entrepreneurial spirit of Coloradans as they put their ideas into the marketplace.”

Counting the numbers for the third quarter, there have been nearly 100,000 new businesses filings in Colorado over the past year. That’s a 10.7 percent increase over the previous 12-month period.

In addition to new filings, there were nearly 109,000 existing business renewals during the third quarter. That;s up 7.1 percent from the same quarter of last year. Renewals from limited liability companies in Colorado constituted the greatest increase from among existing businesses.

The third quarter finished with more than 554,000 businesses in good standing in the registry, a 6.6 percent increase over the same span in 2013.