Employment expansion in Colorado is expected to continue through the fourth quarter of 2014 and into the first quarter of 2015, according to a new report by the University of Colorado Boulder released Oct. 22 by Colorado Secretary of State Scott Gessler.
The Quarterly Business and Economic Indicators Report is prepared by the Business Research Division at CU-Boulder’s Leeds School of Business using data from the secretary of state’s central business registry.
During the third quarter, a total of 27,640 new businesses filed with the secretary of state’s office, marking the fastest growth in filings since at least 2006. The third-quarter filings are an increase from 24,601 in the second quarter and an increase from the same period last year.
Part of the increase was spurred by a “fee holiday” implemented by Gessler on July 1, which reduces online new business-filing costs to $1 from $50, according to the report.
“Our fee holiday focused on encouraging entrepreneurs and small businesses to take the first step to starting their business,” said Gessler. “This report speaks to the entrepreneurial spirit of Coloradans as they put their ideas into the marketplace.”
The quarterly report is based on an analysis that found a strong correlation between new entity filings and total nonfarm employment.
“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 economist Richard Wobbekind, executive director of CU-Boulder’s Business Research Division.
Colorado recorded 99,297 new entities during the 12-month period ending in September—a 10.7% increase from the previous 12 months.
At 108,704 for the third quarter, existing entity renewals also were up by 7.1% compared with the same period in 2013. Renewals from domestic limited liability companies represented the greatest increase among existing entities.
The third quarter finished with 554,418 total entities in good standing in the business registry, a 2.9% increase from the prior quarter and a 6.6% increase from the previous year.