The pace of Coloradans starting new businesses slowed dramatically during the second quarter.
New business filings declined nearly 22 percent from a year ago, according to a joint report from the University of Colorado’s Leeds School of Business and the Secretary of State’s Office. That’s the biggest yearly decline since CU started tracking the data in 2005.
Does that mean Colorado’s entrepreneurial spirit is drying up? Not exactly, according to CU economist Brian Lewandowski. He noted that new business filings jumped last year when the fee to file was temporarily reduced from $50 to $1. The usual fee is back in place now, which could help explain the steep drop off, Lewandowski said during a conference call with reporters.
But there could be other issues — such as high interest rates — putting a damper on Colorado’s business formation.
“It is possible … the environment’s a little slower than it was at this time a year ago,” CU economist Richard Wobbekind said during the call. “There seems to be more uncertainty and apprehension between the election and other things … So there could be other factors there, but we can’t tease that out."
