Colorado ranks eighth on a list of the best states for business growth, according to new research, but small business owners are pessimistic about the future of small businesses.

The ranking for Colorado comes from consulting firm Venture Smarter, which analyzed data from the U.S. Bureau of Labor to figure out the business growth rate in each state based on the number of establishments in December 2021 compared to December 2022.

The list ranks Colorado behind Georgia, Virginia, Arizona, Montana and Vermont (which are tied for fourth), Michigan, South Carolina and North Carolina.

Hawaii tied with Colorado for eighth, according to the data, with both states showing a business growth rate of 9.1 percent.

In December 2021, Colorado had 232,985 business establishments. In December of the following year, the state had 254,280 establishments, according to the study.

The net change of business establishments from 2021 to 2022 was 21,295.

Georgia ranked No. 1 for business growth, with a 13.5 percent change.

Among the lowest-ranked states for business growth were Iowa, Nebraska, New York, New Mexico and, in last place, Washington at -16.8 percent.

Washington was the only state to decrease establishments, according to the data, with 284,440 business establishments in December 2021 and 236,796 in December 2022.

Small business owners in Colorado, and nationally, seem to be less enthusiastic than the consulting firm about growth, according to the National Federation of Independent Business (NFIB).

November marked the 50th anniversary of NFIB’s small business economic survey, which in 2023 shows small business owners feeling pessimistic about business conditions, specifically due to state policy, according to Tony Gagliardi, Colorado state director for NFIB.

“Colorado businesses might have a short-lived victory after soundly defeating Proposition HH at the ballot box,” Gagliardi said in a news release. “The governor’s call for a special session, beginning Friday, Nov. 17, will still examine the prospect of using TABOR refunds to alleviate some of the property tax increases, and will also consider rental assistance during the 2023-2024 fiscal year.”

The survey nationally showed that over half of surveyed business owners are pessimistic that business conditions will get better.