Small Business Profile: COLORADO
Small businesses are the heart of Colorado’s economy. Research by the Office of Advocacy shows that small businesses create most of the nation’s net new jobs, and they bring dynamic ideas, innovative services, and new products to the marketplace. They account for almost all of the nation’s employer firms and generate half of non-farm private output. New business creation is key to a state’sability to increase its gross state product, state personal income, and total state employment.1 This small business profile uses the most recent data available to demonstrate the valuable contribu- tions that small businesses make to Colorado’s economic health.
Number of Businesses. Colorado had an estimated total of 550,100 small businesses.2 Employer firms totaled 156,900 in 2006, up 2.9 per- cent from the previous year. Of this total, an estimated 97.8 percent, or 153,400 were small. Selfemployment (incorporated and unincorporated) totaled 338,800 in 2006, an increase from 334,700 in 2005. Nonem- ployer firms totaled 401,100 in 2005, an increase of 4.1 percent since
(Sources: U.S. Dept. of Labor, Employment and Training Administration;
S. Dept. of Commerce, Census Bureau; U.S. Dept. of Labor, Bureau of Labor
Women-owned Firms. In 2002, businesses owned by women numbered 135,200, represented 29.1 percent of the state’s 465,000 businesses, and generated $16.4 billion in revenues. Employer firms owned by women to- taled 21,500, an increase of 16.4 percent since 1997. Women numbered 132,000 or 39.0 percent of the state’s self-employed persons in 2006, an increase of 1.2 percent from the previous year. (Sources: U.S. Dept. of Labor, Bureau of Labor Statistics; U.S. Dept. of Commerce, Census Bureau.)
Minority-owned Firms.3 In 2002, Asian-owned firms totaled 10,900, and 3,400 of them were employer firms; Black-owned firms numbered 7,100, and 800 were employer firms; Hispanic-owned firms totaled 24,100, and 4,100 were employer firms. American Indian and Alaska Native-owned firms numbered 3,900, and 600 of them were employer firms; while Native Hawaiian and other Pacific Islander-owned businesses numbered 390, and 50 were employer firms. (Source: U.S. Dept. of Com- merce, Census Bureau.)
Business Turnover. An estimated 22,708 new employer firms were created in 2006, which is 14.7 percent less than the number created in 2005. Business bankruptcies totaled 435 in 2006, down from 1,120 the previous year, while business terminations increased from 14,000 in 2005 to 24,200 in 2006. (Sources: U.S. Dept. of Labor, Employment and Training Administration; Administrative Office of the U.S. Courts; U.S. Dept. of Com- merce, Census Bureau.)
Employment. Small firms employed 52.0 percent of the state’s non-farm private labor force in 2004, which was above the national average of 50.9 percent.4 These 121,500 firms accounted for 97.8 percent of the state’s employer businesses, and they employed 991,900 people (Table 1). Small businesses added a total of 25,400 net new jobs between 2003 and 2004 (Table 2). (Source: U.S. Dept. of Commerce, Census Bureau, Statistics of U.S. Businesses.)
Small Business Income. Non-farm proprietors’ income, which is a share of small business income, increased by 5.4 percent, from $24.1 billion in 2005 to $25.4 billion in 2006.5 (Source: U.S. Dept. of Commerce.)
Finance. Commercial banks and savings institutions continued to be important sources of small business financing. The number of lending institution branches in the state increased in 2006 (Table 3). For a list of financial institutions in the state that make the most loans to small busi- nesses, visit www.sba.gov/advo/research/lending.html.
To learn more about the Office of Advocacy’s data and analyses of small business, visit www.sba.gov/advo/research, call (202) 205-6533, or email firstname.lastname@example.org.
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Pinnacol Assurance and CoWest Insurance Group have partnered with the Chamber to Provide reasonable rates and training in workers com- pensation to area businesses as a benefit of Chamber membership. The Castle Rock Chamber members in the program receive an extensive and unmatched array of services at no additional cost from Pinnacol Assurance. By combining the premium of program members, a larger premium base is established, thereby allowing Pinnacol Assurance to reduce costs and return dividends to members based on loss histories. In the past 12 months, the Chamber’s program has returned a total of $34,823 to participants of the program. For more information about this beneficial program, call Pam at 303-688-4597, or email@example.com.
2008 Brings Changes to Workers’ Compensation Rules: Are You Ready?
When the clock strikes midnight on December 31, more than just the year on your calendar is going to change. Some workers’ compensation rules are also changing and Pinnacol Assurance wants you to be prepared.
HB 1176, the Employee Choice of Physician law, requires Colorado employers to designate two medical providers to treat employees who are injured on the job. The two medical providers must be at two distinct locations without common ownership. In some cases, rural employers are exempt from the two-provider rule if there are a limited number of avail- able providers. The law goes into effect on January 1, 2008.
In mid October, Pinnacol put in place the following processes to ensure
that its policyholders do not incur fines and penalties due to non-compli- ance with this new law:
A provider designation process that ensures all policyholders will always
have two providers listed on their policy.
A robust Web-based provider designation system that allows for quick
and easy provider selection and management.
If you have any questions about the Employee Choice of Physician legisla- tion or Pinnacol’s provider designation process, please call 303-361-4960 or 1-888-852-2289.