Colorado's top small business predictions for 2025
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If there's one word that's top of mind for Colorado's business community, it's uncertainty.
The big picture: Local business owners are paying close attention to economic trends as the nation ushers in a new president whose policies remain uncertain.
Why it matters: Small businesses have the agility to adapt quickly to change — a strength that larger corporations sometimes lack — but are also more vulnerable to regulations impacting costs, labor and supply chains.
What they're saying: "The one thing that small businesses need more than anything else is stability," says Hansen Rada, CEO of Westminster-based Tax Guard, which helps lenders verify borrower information for 60% of Small Business Administration loans to mom-and-pop shops nationwide.
Zoom in: Here are five trends small business owners in Colorado and across the country should watch, according to industry experts:
1. Artificial intelligence adoption will soar, while the importance of brand authenticity rises.
- Nearly 80% of small business owners in the U.S. plan to use AI for everything from social media and customer service to bookkeeping and hiring management, per the U.S. Chamber of Commerce.
- Yes, but: Colorado passed a law in 2024 limiting private-sector AI uses, ranging from employment and lending services to housing and insurance.
2. E-commerce, one of Colorado's fastest-growing sectors, is king.
- Customers crave convenience, and businesses with user-friendly websites have a clear advantage. Online retail sales are projected to jump nearly 23% globally by 2027, according to the U.S. Small Business Administration.
3. Remote work remains a priority for employees, particularly in metro Denver.
- Small businesses that embrace flexible, work-from-home models and promote work-life balance will attract a larger, more diverse labor pool.
4. Middle-market restaurants will continue facing tough times.
- Traditional sit-down restaurants are likely to keep struggling with thin margins and cost uncertainties, while fast-casual and high-end restaurants hold strong, Rada tells us.
5. Resilience is key as economic pressures persist.
- The Trump administration is expected to follow through on campaign promises to cut taxes — which could boost the economy in the short term. But proposed tariffs and stricter immigration policies could increase inflation and shrink the labor force.
The bottom line: As Colorado business leaders wrestle with new threats, they remain optimistic the new administration will prioritize policies that spark growth and innovation, Rada tells us.
- "This country is founded on small businesses and entrepreneurs and capitalism — and so anything that can … spur more and more creation of small businesses is a positive," he says.