Anyone who wants to start a business has many factors to consider: how solid is the business plan? Is there a ready market for the product or service being offered? Can the entrepreneur secure venture capital?
The above factors are important considerations, to be sure. But there are also certain factors that people often fail to consider ahead of time. These include: How business-friendly are the state and local governments? Are the tax burdens and regulatory requirements going to make it too difficult to become profitable? Unfortunately factors likes these are often outside of an individual’s control. Thankfully, however, the governmental and regulatory landscapes here in Colorado seem to be among the friendliest in the country for would-be entrepreneurs.
A group called the Small Business & Entrepreneurship Council recently released its “2016 Small Business Policy Index.” The report examines the business friendliness of each state based on 50 different metrics – including governmental metrics like tax policy, regulatory requirements and government spending/debt.
In this year’s analysis, Colorado ranked 11th in the nation, and was just a few thousandths of a point away from taking the number 10 spot. Here were some factors that worked for and against Colorado’s ranking:
- Positive: Relatively low gasoline and diesel taxes
- Positive: Relatively low workers’ compensation insurance costs
- Positive: A light energy regulatory burden
- Negative: A high minimum wage
- Negative: Relatively high levels of government debt (both state and local)
Commenting on the importance of the metrics measured in the report, a representative of the Small Business & Entrepreneurship Council said: “Make no mistake. Tax, regulatory, government spending and other governmental performance and cost measures matter state by state. They have real impacts not only on entrepreneurship, investment, small businesses and their workers, but naturally therefore on the overall economy of each state.”
If you have been dreaming about starting a business here in the Denver area or elsewhere in Colorado, the results of this report will hopefully be the good omen you have been waiting for. Our state is business-friendly, and any business-related legal difficulties you may face can be mitigated and simplified with the help of an experienced business law attorney.