Small Business Majority and Rocky Mountain MicroFinance Institute host Colorado Inclusive Small Business Roundtable
Small Business Majority and Rocky Mountain MicroFinance Institute (RMMFI) convened an Inclusive Small Business Roundtable on December 4 with Colorado policymakers and agency leaders and a group of diverse small business owners ahead of the upcoming 2025 legislative session. The goal was to help legislators and agency attendees better understand the experiences and barriers that entrepreneurs face when starting and growing their businesses.
One challenge that small business owners experience almost universally is the difficulty of accessing capital. Traditional banks are often reluctant to lend to small businesses, leaving them vulnerable to predatory lenders. During the discussion, Rocky Mountain MicoFinance Institute Director of Advocacy and Partnerships Theresa Rinne-Meyers said: "We know that access to capital is among the major challenges entrepreneurs face when starting their businesses. Community Development Financial Institutions (CDFIs) like ours can play a critical role in bridging this gap by offering accessible and relationship-based financing but we need public, nonprofit and private solutions working together to center entrepreneur needs and voice."
Different entrepreneurs, however, have different capital needs, and presenters highlighted a gap in “mid-tier” loans. Many entrepreneurs need mid-level loan support, with microloans not being sufficient to meet their financing needs and large loans causing them to pay too much in interest. Small businesses need capital that meets their needs. As a Longmont-based entrepreneur noted: “At the center of every small business is a person and most people are struggling to pay their bills. We need that person-centered funding so we can focus on the business.”
Small business owners also face challenges navigating Colorado’s tax system and complying with regulations. An entrepreneur whose business operates in multiple cities and counties has to comply with each jurisdiction’s different sales tax which takes significant time and effort. A Denver-based entrepreneur said: “We want to be compliant. Business owners want to be compliant when it comes to paying sales taxes. But it is incredibly difficult without being a conglomerate that has a whole office of people who can figure out these things.”
Additionally, the possibility of losing their employer-sponsored health insurance is a barrier for many entrepreneurs looking to start their own businesses. For example, even though the Affordable Care Act is a lifeline to many entrepreneurs, it can nonetheless be challenging for some to navigate the system. And once small business owners have secured health insurance, high premiums are challenging to afford. An Aurora-based entrepreneur said: “The cost of healthcare is a burden not just for individuals but for small businesses like mine. For entrepreneurs, especially in industries like food service, access to affordable care can mean the difference between thriving or shutting down.”
During the session, entrepreneurs also shared barriers that persist for women, BIPOC and undocumented entrepreneurs in particular. Many of them don’t visualize themselves becoming small business owners, even as they pursue side hustles. Furthermore, they explained that they need better access to resources, funding and representation in entrepreneurial spaces. With greater support, they’ll be empowered to better succeed.
Small Business Majority Colorado Director Hunter Nelson said: “We need more forums like this roundtable to bring policymakers and entrepreneurs together to collaboratively think about policy solutions that reduce equity barriers to entrepreneurship. This roundtable also highlighted that there are lots of resources to support businesses in Colorado, but awareness of these resources among entrepreneurs needs to be increased through targeted outreach by state agencies. The conversations that resulted from this roundtable were extremely valuable, and are just the beginning!"