Best Cities for Small Business in Colorado
Colorado ranks #20 of 50 for small business, with a small business score of 59.8. Highlands Ranch is its best city for small business at 78.1.
- Colorado, all states
- #20 of 50
- Population
- 102,257
Colorado for Small Business: The Full Picture
Colorado ranks #20 out of 50 for small business owners and entrepreneurs, offering a favorable climate for new ventures. The state's fiscal health score of 60/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Colorado's overall tax burden is 8.73% of income, with a 4.4% income tax rate that applies to both personal and pass-through business income. The 7.89% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 60/100) with 4% unemployment shows healthy labor availability.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 65/100) produces a reasonably well-prepared workforce. A typical home value of $532,748 is expensive enough that employee compensation expectations may be higher.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Highlands Ranch | A+ | 78.1 | 68.0 | 100 | 100 | — | 102,257 |
| 2Castle Rock | A | 70.2 | 66.8 | 96 | 86 | 53 | 79,123 |
| 3Parker | A | 66.5 | 63.3 | 90 | 81 | 55 | 61,783 |
| 4Broomfield | A+ | 66.2 | 68.1 | 83 | 75 | 52 | 76,304 |
| 5Centennial | A | 64.9 | 65.5 | 92 | 79 | 31 | 108,201 |
| 6Arvada | B+ | 63.2 | 62.1 | 81 | 72 | 47 | 122,634 |
| 7Commerce City | C+ | 59.9 | 54.8 | 73 | 67 | 58 | 66,445 |
| 8Westminster | B | 57.9 | 58.5 | 70 | 64 | 41 | 115,484 |
| 9Longmont | B+ | 57.4 | 60.8 | 64 | 59 | 46 | 99,406 |
| 10Thornton | B | 57.4 | 58.5 | 72 | 64 | 37 | 144,187 |
| 11Loveland | B+ | 55.6 | 60.1 | 61 | 56 | 46 | 78,410 |
| 12Fort Collins | B+ | 53.8 | 59.7 | 48 | 58 | 47 | 170,229 |
| 13Denver | C+ | 53.7 | 54.6 | 61 | 61 | 40 | 718,877 |
| 14Lakewood | C+ | 53.3 | 53.7 | 62 | 59 | 38 | 156,583 |
| 15Grand Junction | C+ | 52.2 | 54.5 | 49 | 50 | 59 | 68,142 |
| 16Colorado Springs | C | 52.0 | 51.2 | 61 | 57 | 46 | 487,887 |
| 17Aurora | C | 51.4 | 51.5 | 57 | 58 | 45 | 394,432 |
| 18Boulder | B+ | 49.9 | 59.0 | 39 | 58 | 33 | 106,433 |
| 19Greeley | D | 44.3 | 46.4 | 43 | 45 | 41 | 110,806 |
| 20Pueblo | F | 38.1 | 42.6 | 33 | 34 | 27 | 111,561 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Colorado for Other Lifestyles
Frequently Asked Questions
Is Colorado a good state for small business?
Colorado ranks #20 out of 50 for small business with a persona-weighted score of 59.8/100. Its strongest relevant category is Education (65/100) and its weakest is Growth (31/100).
What is the best city for small business in Colorado?
Highlands Ranch ranks #1 in Colorado for small business with a score of 78.1/100, followed by Castle Rock and Parker.
What factors are most important for small business in Colorado?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.