Colorado creates small entrepreneurial start-ups at a faster rater than the rest of the nation — even a high-tech state like California — but fewer of them survive five years, according to a new study.
Nationally, a little less than half of small businesses survive five years, yet Colorado's rate is lower, according to the report released Monday by Colorado Innovation Network, or COIN.
COIN was created in 2011 by Gov. John Hickenlooper to stimulate economic growth and innovation.
"The survival rate of Colorado businesses is low and gets worse as they age," the report said.
"At the end of one year, the survival rate of Colorado businesses lags behind the national average by more than one percentage point," the report said.
"By age five, the survival rate Colorado of establishments is even further behind, lagging by nearly two percentage points," the report said.
The companies that survive the five-year hurdle grow employees faster than the national average and create more income for owners and the employees, said Stephan Weiler, a Colorado State University economist and the report's lead author.
"There is no doubt we have talented people coming up with good ideas. and we continue to be an attractive place to be," Weiler said.