COLORADO — A new quarterly state Economic and Fiscal Outlook report released Wednesday by the Governor's Office of State Planning and Budgeting shows a record number of new business filings in the first half of 2023.
The report also shows promising trends for small businesses in Colorado as inflation cools from a peak of 9% last summer to 3.7% according to the latest datafrom the Bureau of Labor Statistics.
In Colorado, 47.6% of all employees work for a small business with 500 employees or less, according to the report. The Colorado Springs Chamber and EDC said in Colorado Springs that number is even greater at 90% of all employees. Theresa Metcalf, Vice President of Economic Development for the Chamber and EDC, said over 50% of the projects announced over the last 20 months are classified as small businesses.
"Not only are we seeing an increase in small business development, but we're also seeing an increase in activity within Colorado Springs and interest in Colorado Springs and some great growth," said Metcalf.
The state report said industries like food services, health care and social assistance, and construction have the highest concentration of employees working for small businesses.
Small businesses like Dapper Barbershop in Old Colorado City said although the rate of inflation is decreasing, costs are still high.
"Everything was pretty challenging already to purchase just because after Covid, everything got expensive. But even after Covid, everything got more expensive," said owner Ienn Chacon.
He said, like many other small businesses, he has had to pass down costs to customers by charging more for services.
"We try to raise our prices to like keep up with what we have to pay. But we can't keep putting the prices on the clients. You know, we're already charging them a certain amount, so we try to keep up," he said.
Economists say businesses may not feel the effects right away because prices are still rising, just not as much as they were before.
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