For small businesses in Colorado, navigating the state’s complex and growing regulations has become an uphill battle. As the sixth most regulated state in the nation, Colorado’s regulatory climate continues to be a top concern for businesses statewide. Small businesses, in particular, consistently identify the state’s high regulatory burden as a significant barrier to doing business.
A recent Colorado Chamber business survey found that 65% of businesses with fewer than 100 employees list regulations as one of their top three challenges. Of those, 58% say state-level regulations are the primary source of that burden. Labor and employment regulations are the biggest concern for small business owners, with 85% identifying them as their top issue. Environmental regulations follow, with 59% expressing concern in that area.
This regulatory pressure can slow business growth and create uncertainty—all of which make it harder for small businesses to operate in Colorado. Small employers play a critical role in job creation and economic development, so when these businesses face barriers, the broader economy feels the impact. Excessive regulations not only challenge day-to-day operations but also make Colorado less competitive and drive businesses out of the state.
The small business community is united in the need for regulatory relief from the legislature, with 96% of businesses with fewer than 100 employees supporting periodic evaluations of existing regulations, and 82% believing there should be a cap on new state regulations.
Nationally, small business are facing similar struggles, with 69% of small businesses reporting they spend more per employee to fulfill regulatory requirements compared to larger competitors.
Regulatory burdens often disproportionately affect small businesses, and with Colorado being one of the nation’s most restrictive states, the Colorado Chamber continues to keep regulatory reform a top priority. Learn more about the Colorado Chamber’s bold solutions to get our regulatory climate under control and provide relief to the business community here.