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Colorado sees surge in new business filings in Q1 2025
Margaret Jackson //May 6, 2025//
Colorado’s business sector showed strong growth in the first quarter, with new business filings up 19% compared to the previous quarter and 7.7% from the same period last year, according to a report by the University of Colorado Boulder Leeds School of Business and the Colorado Secretary of State‘s office.
In Brief:
- Colorado added 48,629 new businesses in Q1 2025
- Business filings rose 19% over the previous quarter
- Unemployment climbed to 4.8%, a post-2021 high
- Inflation stayed below the national average at 1.9%
The state added 48,629 new businesses, up from 40,863 in the fourth quarter. Most of the new businesses are limited liability companies, signaling strong entrepreneurial momentum.
Business renewals were up 11.2% from the fourth quarter to 206,826. But that’s down 1.2% year-over-year.
“The results of this quarter’s new business formation is very encouraging, especially in light of the current uncertain economic environment,” said Richard Wobbekind, senior economist at CU’s Leeds School of Business.
Although the state’s labor market added 2,300 jobs year-over-year in March, the unemployment rate rose to 4.8% — its highest level since September 2021.
Inflation remains below the national level, with the consumer price index increasing 1.9% year-over-year in March, compared to the national index rising 2.4%. Core inflation (excluding food and energy) was slightly higher at 2.3%.
“Colorado and our country are facing significant uncertainty from the actions of the federal government,” Secretary of State Jena Griswold said. “Despite this unprecedented time, Colorado’s economy remained stable in the first quarter of the year, and we continue to be one of the best states in the nation to do business.”
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