Coloradan small businesses 'keeping heads above water'

Although the credit crisis is causing small businesses across the country to struggle, Colorado is reported to be doing better than most.

In the latest small business index report by Vectra Bank Colorado, firms in the state were shown to register a score of 87.7 in October. Such a figure follows the revised 89.6 noted for September, the Denver Business Journal reports.

And although this represents a decline in confidence for small organizations, it was pointed out to be less dramatic than the nationwide average. Data recorded in the U.S. Small Business Index registered a score of 61.6 last month, a fall from 68.2 in September.

Unemployment rates in the western state fell from 5.4 percent in August to 5.2 percent in September, it was also reported. This compares with September 2007 when unemployment rates of 4 percent were recorded.

Jeff Thredgold, corporate economist for Vectra Bank Colorado, said, "Colorado continues to keep its head above water. It is among a handful of states that have thus far avoided recession and managed to maintain job growth of 1 percent or better."

He added, "The U.S. economy is clearly struggling with recession, perhaps the worst we've seen in a generation."

It was also reported that a decision by the Federal Reserve to further cut interest rates.

A decision by the Federal Reserve to further cut interest rates would prove to be of assistance to many small businesses in Colorado, he reportedly suggested.

Earlier this month, it was revealed that a number of small firms in Denver have joined forces to create a business-to-business network, offering support and guidance to fellow organizations.