Connecticut’s Economic Success Relies on Championing Small Business

The following article first appeared in the opinion pages of Hearst Connecticut Media newspapers.

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It’s no understatement to say that we are living in uncertain times. 

Traditional economic expectations and structures are being shaken to their core. Geopolitical alliances are shifting, labor markets are stressed, supply chains are being redrawn, and technologies are accelerating change faster than institutions can adapt.  

Connecticut’s economy is navigating much of this uncertainty relatively well, expanding for a sixth consecutive quarter in the July-September period of last year, growing 5.6%—fourth best in the nation. 

That growth underscores the strength, resilience, and adaptability of our businesses and their world-class workforces, who are navigating ongoing uncertainty and rising costs and finding innovative ways to boost productivity and drive growth. 

Connecticut is again punching above its weight in productivity, innovation, and output.  

The state’s new-found fiscal stability—a direct result of the historic, bipartisan 2017 budget reforms—is helping drive business confidence while positioning the state to make critical, long-term investments in infrastructure, workforce development, education, and affordability. 

Population, Workforce Concerns

Now, however, is not the time to take the foot off the accelerator. 

Strong GDP growth alone does not guarantee shared prosperity or long-term resilience. And while the topline numbers are encouraging, we are navigating a set of challenges that demand deliberate, coordinated action. 

At the top of those concerns is our shrinking labor force, which declined in alarming fashion in 2025, with the population of those working and looking for work falling by 19,900 people (-1%). 

Too many talented people—especially younger workers—find it difficult to picture a future here.

Connecticut, like much of the Northeast, is confronting demographic headwinds. Our population is aging. Too many employers—large and small—struggle to find workers with the skills they need, and too many talented people—especially younger workers—find it difficult to picture a future here. 

Our high cost of living continues to weigh heavily on households and businesses.  

Energy costs are among the highest in the nation. Housing is scarce and expensive. Childcare access and costs force impossible trade-offs for working families. Healthcare costs remain a major burden for employers and employees. 

Leadership Matters

These pressures are not abstract. They shape decisions every day—whether a business expands or delays investment, a family stays or leaves, or a young entrepreneur chooses to launch a company here or somewhere else. 

Uncertainty at the federal level isn’t helping. Trade policy, in particular, is less predictable. Tariffs—whether proposed, implemented, or merely discussed—introduce risk into supply chains, raise input costs, and complicate long-term planning. 

For a state like Connecticut, with a globally connected economy and a heavy concentration of manufacturers and exporters, that uncertainty matters. 

We can create the conditions that make Connecticut the best possible place to do business and live.

That’s why state-level leadership is so critical right now. We cannot control every external factor, but we can create the conditions that make Connecticut the best possible place to do business and live, despite all the uncertainty around us. 

Central to that effort is recognizing—and acting on—the essential role of small businesses, the heart and soul of our economy. 

They anchor main streets, employ almost half the state’s private sector workforce, and fuel innovation across our state. 

Small businesses are often the first to feel economic stress and the last to recover. They have less margin for error, less access to capital, and fewer resources to navigate regulatory complexity. 

Small Business Champions

This General Assembly session, we are calling on lawmakers to not only recognize the importance of smaller employers to Connecticut’s economy, but to become small business champions by focusing on policy solutions that will allow these businesses to thrive. 

That means continuing to simplify regulations and reduce unnecessary compliance burdens. It means improving access to capital. It also means investing in people. 

Addressing our declining labor force requires a multi-pronged approach. We need to retain the talent we already have by making Connecticut more affordable. 

We need to attract new residents by highlighting not just our job opportunities, but our quality of life, safety, schools, and communities. 

And we need to develop the workforce of the future by aligning education and training with real-world employer needs. 

We can't control every external factor, but we can ensure this is the best place to do business and live. The question isn't whether we can compete—we can. The question is whether policymakers can act with the urgency needed to drive job, economic growth. https://t.co/hrFPVYPhqQ

— Chris DiPentima (@ChrisDipentima) January 30, 2026

Our willingness to collaborate to tackle tough issues is why I remain deeply optimistic about Connecticut’s future. 

We have strengths other states envy: proximity to major markets, deep industry clusters, strong institutions, and a tradition of public-private collaboration. 

We have public and private sector leaders who understand that economic growth is not zero-sum and that long-term success requires partnership. 

The question is not whether Connecticut can compete—it can. 

The question is whether we will act with the urgency needed to ensure that growth is broad-based, sustainable, and inclusive. 

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About the author: Chris DiPentima is the president and CEO of CBIA, Connecticut’s largest business organization.