Starting a business is a pivotal decision, and the location you choose can profoundly influence your success. Oregon offers a compelling array of advantages for entrepreneurs, from a nurturing business climate to attractive financial incentives. This state has rapidly become a favored destination for both fledgling startups and established companies. In this blog, we’ll unpack why Oregon is emerging as an ideal place for your business, exploring its unique blend of opportunities that cater to the needs of a diverse range of business ventures.
Healthy Economic Growth
One of the most compelling reasons to start a business in Oregon is the state’s economy. Oregon consistently ranks among the top states in terms of economic growth. Over the past two decades, its economy has expanded by approximately 75%. According to Business Oregon, the state agency responsible for economic development, Oregon ranks third in employment growth and sixth in patents issued nationally. Additionally, Oregon is a leader in renewable energy, ranking fifth for electricity generated from renewable sources. This commitment to innovation and sustainable practices creates a thriving environment for both startups and established companies.
The diversity of industries in Oregon further adds to its appeal. The state is home to a growing tech sector, a flourishing tourism industry, and one of the largest salmon-fishing industries in the world. In Portland alone, you’ll find more breweries than in any other city globally, highlighting Oregon’s ability to attract niche markets and foster creative business ideas.
Strong Local Support and “Buy Local” Movement
Another significant advantage when you start a business in Oregon is the widespread local support. There is a strong “buy local” culture in the state, which provides small businesses with a competitive edge. Consumers in Oregon prefer to support businesses that are locally owned and operated. This trend can be seen across various sectors, from handcrafted furniture stores to locally sourced food markets.
The “buy local” movement isn’t just a consumer trend—it is also supported by various local organizations and communities. Business Oregon, along with the Oregon Entrepreneurs Network, offers mentorship programs and funding opportunities to help new businesses thrive. These resources, coupled with a consumer base that values local products and services, make Oregon a fertile ground for small businesses.
Financial Incentives and Business-Friendly Policies
Oregon offers a range of financial incentives that can significantly reduce the cost of doing business. Programs like Enterprise Zones provide tax exemptions in exchange for investment and job creation in designated areas. Another popular program is the Strategic Investment Program (SIP), which offers a 15-year property tax exemption on large capital investments. Additionally, the Oregon Investment Advantage program allows qualifying businesses to nearly eliminate state income taxes for several years, especially if they relocate or expand in specific counties.
For those in the food processing industry, a five-year tax exemption on newly operational machinery and equipment is available if certified by the Oregon Department of Agriculture. These financial incentives can provide much-needed relief for new businesses, helping them to grow and succeed in a competitive market.
Beyond state-level programs, there are also local incentives available. Many cities in Oregon offer their own support programs, which could include grants, low-interest loans, or even free resources to help businesses get started. It’s advisable to check with local economic development agencies in the community where you plan to operate for additional assistance.
High Quality of Life and Employee Satisfaction
Oregon is known for its high quality of life, which translates into happier employees and, consequently, more productive businesses. The state’s stunning natural landscapes, including forests, mountains, and coastlines, offer plenty of recreational opportunities, contributing to the overall well-being of its residents. Many businesses that relocate to Oregon do so because of the appealing lifestyle it offers.
For example, companies like Nike and Intel have established a strong presence in Oregon and continue to thrive, partly due to the state’s ability to attract top talent. Employees in Oregon benefit from an excellent work-life balance, making it easier for companies to retain skilled workers. In addition, the state’s low unemployment rate and high worker productivity levels are indicators of a favorable business environment.
Challenges to Consider
While Oregon offers many advantages, it’s important to be aware of some challenges that may come with doing business in the state. High property taxes and income taxes are often cited as drawbacks. Although there is no sales tax in Oregon, the state’s income tax rates can range from 5% to 9.9%, depending on your earnings.
Another challenge is the tight labor market. With an unemployment rate near historic lows, finding skilled workers can be difficult. However, once you secure the right talent, Oregon’s workers are known for their productivity, with the state’s economic output per worker significantly above the national average.
Real estate costs in cities like Portland have also increased in recent years due to rapid population growth. While this can be a concern for businesses looking to expand, it’s worth noting that the state is actively working on solutions like affordable housing initiatives and rent control laws.
Getting Started with Your Business in Oregon
When you’re ready to take the plunge and start a business in Oregon, there are several steps to follow. One of the first is to register your business with the Oregon Secretary of State. Depending on your business structure, you may need to file as an LLC, corporation, or Oregon Doing Business As (DBA). An Oregon DBA allows you to operate under a different name than your registered legal entity, which can be beneficial for branding purposes.
For a seamless registration process, you might want to consider using services like MyCorporation. They can handle everything from business name searches to filing the necessary documents with the state. This way, you can focus on launching and growing your business while ensuring that all legal requirements are met.
Oregon offers a supportive business environment, diverse industries, and a strong local culture that benefits small businesses. Despite some challenges like high taxes and tight labor markets, the state’s financial incentives, quality of life, and growth opportunities make it an appealing destination for entrepreneurs. If you’re considering where to launch your next venture, it’s time to seriously consider starting your business in Oregon.
Starting your dream business in Oregon might just be the perfect decision—backed by the state’s commitment to supporting local businesses and a thriving economy.
