Best Cities for Small Business in Oregon
What Small Business Should Know About Oregon
Oregon ranks #38 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 55/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Oregon's overall tax burden is 9.06% of income, with a 14.69% income tax rate that applies to both personal and pass-through business income. The absence of a sales tax simplifies retail operations. The economic environment (score: 27/100) with 5.4% unemployment suggests a larger available workforce, which can ease hiring pressures.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 63/100) produces a reasonably well-prepared workforce. Housing at $505,000 median is expensive enough that employee compensation expectations may be higher.
All 20 Cities Ranked for Small Business
| # | City | Grade | Small Business Score | Overall | Fiscal Health | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|---|
| 1 | Bethany | A+ | 71.2 | 67.1 | 99 | 78 | 52 | 31,700 |
| 2 | Lake Oswego | A+ | 70.0 | 68.4 | 96 | 81 | 39 | 40,367 |
| 3 | Tigard | A | 64.9 | 62.3 | 71 | 67 | 65 | 55,395 |
| 4 | Hillsboro | A | 62.3 | 61.0 | 70 | 67 | 55 | 107,726 |
| 5 | Bend | A | 61.3 | 62.5 | 64 | 63 | 63 | 104,554 |
| 6 | Oregon City | B+ | 61.3 | 59.7 | 69 | 63 | 58 | 37,482 |
| 7 | Beaverton | B+ | 58.5 | 59.7 | 62 | 62 | 49 | 96,946 |
| 8 | Aloha | B+ | 57.2 | 57.3 | 66 | 52 | 50 | 53,362 |
| 9 | Redmond | B+ | 55.7 | 58.0 | 57 | 54 | 56 | 35,161 |
| 10 | Keizer | B | 54.1 | 53.6 | 60 | 55 | 49 | 39,013 |
| 11 | Portland | C+ | 52.6 | 52.7 | 54 | 57 | 43 | 630,395 |
| 12 | McMinnville | B | 51.4 | 55.2 | 42 | 49 | 50 | 34,493 |
| 13 | Gresham | C+ | 49.5 | 51.6 | 50 | 53 | 44 | 110,678 |
| 14 | Salem | C+ | 49.0 | 50.2 | 45 | 51 | 46 | 177,423 |
| 15 | Albany | C+ | 48.1 | 51.3 | 48 | 49 | 42 | 56,773 |
| 16 | Medford | C+ | 47.3 | 49.7 | 46 | 44 | 45 | 85,100 |
| 17 | Eugene | C+ | 47.1 | 52.3 | 35 | 49 | 43 | 177,900 |
| 18 | Corvallis | B | 46.6 | 56.3 | 20 | 50 | 49 | 60,424 |
| 19 | Springfield | C+ | 46.6 | 50.2 | 41 | 48 | 41 | 61,642 |
| 20 | Grants Pass | C | 42.7 | 46.9 | 36 | 37 | 41 | 39,183 |