Owners of Colorado’s smallest small businesses believe more needs to be done to help them grow, according to a report to be released Tuesday.
“There is a clear disconnect between the services desired and demanded by microenterprises and the business owners’ knowledge of services available,’ says the report conducted by the Leeds Business Research Center at the University of Colorado and the Microenterprise Development Advisory Council.
The report suggested offering additional business-development services to rural areas and making some business- training available online.
The study and an associated white paper also suggested creating a state microenterprise- development advocate to create “new partnerships, linkages and initiatives within state and local government.’
The advocate would find new sources of business-development funding as well as launch a marketing campaign to educate microbusiness owners about available assistance.
“A lot of small businesses don’t look and realize there are places for help,’ said survey respondent Richard Gristak, founder and chief of Evergreen’s Cherokee Consulting.
Respondents identified critical issues facing microbusinesses, with eight of the top 10 issues relating to taxes or expenses such as health and business insurance, the price of advertising and rent. The other two issues related to federal paperwork and managing time.
The report surveyed 140 microbusiness owners, defined as a business with fewer than five employees that lacks access to traditional bank loans.
Only 40 percent of respondents said access to capital was readily available. Fewer than half said the business-development assistance they received was adequate.
“Microenterprises are the small businesses that make the state’s economy run,’ said Ceyl Prinster, executive director of Colorado Enterprise Fund, a Denver nonprofit that provides loans to small-business owners. “It’s important microbusiness owners are aware of the resources.’
Nationwide, there were 20.8 million microbusinesses in 2001, with about 421,300 based in Colorado. Microbusinesses in Colorado employ about 20 percent of the state’s workforce. The sector grew by 2.9 percent from 1998 to 2001, slightly faster than other industries regardless of size.
Staff writer Will Shanley can be reached at 303-820-1473 or wshanley@denverpost.com.
