What Small Business Owners Need: Insights from Colorado's Roundtable on Capital Access

Understanding the Barriers Faced by Small Business Owners

On December 4, the Small Business Majority and the Rocky Mountain MicroFinance Institute (RMMFI) held a pivotal Inclusive Small Business Roundtable in Colorado, where a host of policymakers, agency leaders, and diverse small business owners came together to tackle the persisting hurdles that new entrepreneurs encounter. One of the core issues discussed was the pervasive struggle for access to capital.

As Theresa Rinne-Meyers, Director of Advocacy and Partnerships at RMMFI, pointedly highlighted, "Access to capital is among the major challenges entrepreneurs face when starting their businesses." Traditional banks often turn a blind eye to small businesses, leaving many entrepreneurs trapped in the cycle of predatory lending. RMMFI is working to change that narrative by advocating for community-based financial institutions that wield the capacity to offer flexible and relationship-focused financing.

The Need for Flexible Financing Solutions

Entrepreneurs at the roundtable underscored the stark gap in mid-tier loan availability. While microloans often fall short of actual financial needs, larger loans can incur excessive interest rates. A Longmont entrepreneur shared their struggle, noting: "At the center of every small business is a person... We need that person-centered funding so we can focus on our business." This sentiment underscores the necessity for financial products tailored to the unique circumstances of diverse small business owners.

Regulatory Challenges and Healthcare Concerns

The discussions also pinpointed significant regulatory complexities that entrepreneurs face in Colorado's tax system. Navigating various sales tax requirements across jurisdictions can be laborious. As one Denver-based entrepreneur remarked, "We want to be compliant... But it is incredibly difficult without a full office dedicated to tackling these tasks." Moreover, the issue of healthcare looms over many entrepreneurs, with high premiums and the fear of losing employer-sponsored insurance being alarming deterrents to launching their businesses.

Supporting Underserved Communities

Particular focus was given to the barriers influencing women, BIPOC, and undocumented entrepreneurs. Many in these demographics hesitate to envision themselves as business owners. Improved access to funding, resources, and mentorship could empower these aspiring entrepreneurs. Hunter Nelson, Director of Small Business Majority Colorado, emphasized, "We need more forums like this roundtable" to foster growth and provide diverse entrepreneurs with the opportunities they deserve.

What Can Be Done?

The insights garnered from this roundtable underscore the need for collaborative efforts involving public, nonprofit, and private entities to create a supportive ecosystem for small businesses. By bridging the funding gap and addressing regulatory complexities, we can champion diverse entrepreneurship and bolster economic growth in Colorado.