By Margaret Hedderman
In a recent interview with Startup Colorado, State Treasurer Dave Young discussed his role and shared insights into the evolving economic landscape of our rural regions, emphasizing the challenges and opportunities for entrepreneurs. Watch the full interview with Startup Colorado’s Director of Communications, Margaret Hedderman, or read a summary of their discussion below.
First things first, what does the State Treasury do?
Under Treasurer Young’s leadership, the Colorado State Treasurer’s Office handles the state’s financial operations, including managing the flow of tax revenue, ensuring that state obligations are met, and investing any surplus funds. Each year, the office manages around $40 billion, maintaining an investment portfolio to maximize returns without compromising financial stability.
Additionally, the office handles various financial programs, such as the CLIMBER Small Business Loan Program and the Colorado Secure Savings Program, aiming to provide financial support and stability to businesses and individuals across the state.
“What we do is very similar to what everyone else does in their personal finances. It’s on a grander scale,” Young said. “There’s money coming into the state; there’s money that has to go back out. The money coming into the state is tax revenue. And then the legislature decides how they want that money spent. It’s our job in the Treasury to make sure those obligations are met.”
Colorado’s Rapidly Evolving Rural Economy
Born and raised in Greeley, Young has witnessed significant changes to the state’s economic landscape over the course of his lifetime. While his home in Weld County remains one of the top agricultural areas in the US, other regions have undergone substantial pivots. At Startup Colorado, we are tracking these foundational changes to the rural economy, but it’s important to keep in mind those are an extension of longer evolution.
Reflecting on his experience, Young said that Colorado still has a strong agricultural and mining economy. “I think the mining piece is certainly under inspection and market forces are moving us away from that, but there wasn’t a ski industry until just after World War II and so you know, the whole outdoor recreation part of our economy has evolved since then.”
Acknowledging Colorado’s rapid population growth—not solely on the Front Range, but in rural areas as well—Young noted the rise of the outdoor recreation industry, the increasing development of tourism, and interest in renewable energy.
He added, “This is an evolving process as we try to cope with rapid growth and figure out how we can maintain our infrastructure and make sure people have access to capital.”
Challenges Facing Rural Entrepreneurs
Regardless of where you live, entrepreneurship is never a walk in the park, but it can be uniquely challenging to founders in rural areas. The familiar faces of affordable housing, access to a skilled workforce, and employee retention surfaced during our conversation.
Young emphasized the need for ongoing investment in workforce development to ensure that businesses have access to skilled labor. The Colorado Secure Savings Program—which Young chairs—plays a role in this by offering a retirement savings option to employees who don’t have access to one through their employers.
“This is a way that business owners can easily provide an additional component to their compensation package, and hopefully helps attract and retain employees,” he said.
He also mentioned the need for enhanced infrastructure, including affordable housing, access to transit, and water resources, as another pressing concern for rural communities and entrepreneurs looking to launch and scale businesses.
Of course, no conversation about the challenges facing rural entrepreneurs is complete without reference to COVID-19. The pandemic brought significant financial challenges to small businesses,
highlighting the need for accessible capital. In response, the state launched the CLIMBER Loan Fund Program which aims to distribute working capital loans between $10,000 and $500,000 to small businesses. The program is governed by an oversight board, which is chaired by Treasurer Young.
“We want to be sure that no business shutters for lack of working capital, and so CLIMBER is available, and it’s really starting to take off.”
Supporting Entrepreneurs in Transitioning Economies
Local and state governments play a pivotal role in supporting entrepreneurs, especially in transitioning economies. Young highlighted the state’s Just Transition Initiative, which focuses on aiding regions historically dependent on coal mining as they shift towards renewable energy.
Governments can assist by helping communities re-envision their economic futures. Young said, “I think that local governments and state government can really be supportive by helping them re-envision, think about what it is they want to become.”
The initiative aims to mitigate economic disruption by facilitating community-driven planning and providing essential support. Rather than imposing solutions, governments can facilitate conversations that allow communities to define their own economic paths.
Young emphasized the importance of a listen-and-learn approach. “One of the things that we know about Coloradans is that nobody likes to be told what to do,” Young said.
“One of the things that we know about Coloradans is that nobody likes to be told what to do.”
Young emphasized the importance of a listen-and-learn approach. “One of the things that we know about Coloradans is that nobody likes to be told what to do,” Young said.
Listening to and collaborating with local communities is key.
“I’m sensitive to this because I live in rural Colorado. People want to be listened to. They want to be heard about what it is they want to do with their communities,” Young said.
By providing tailored support and fostering community-driven initiatives, governments can effectively aid in the economic evolution of transitioning areas.
Other States, Take Note of Rural Colorado
Despite the challenges, Rural Colorado is quickly becoming a great place to start or scale a business. In fact, communities like Montrose have edged out larger ecosystems like Austin in attracting innovative manufacturing startups. This speaks to a long history of inspired economic development and entrepreneurial visionaries.
At Startup Colorado, we frequently hear from economic developers in other states—and other countries! —about the enviable nature of Colorado’s rural startup ecosystem. We asked Treasurer Young what he thought other states could learn from Colorado’s success.
While he was quick to acknowledge states like Oregon and Illinois as inspiration for the Secure Savings Program, he added that our state’s embrace of entrepreneurship as a driving factor in rural economic development.
“I think it does speak well to the State and draws people here, because they see opportunity,” Young said. “But, you know, we’re going to have to continue to think about our long range thinking and how we finance the efforts in all these areas to actually make sure they’re maintained and they grow.”
To learn more about Colorado’s rural startup ecosystem, check out our State of Startups report. If you’re interested in getting involved, join our online community, which breaks down geographic barriers and enables rural founders to connect to vital resources and connections.
