Best Cities for Small Business in Oregon
Oregon ranks #42 of 50 for small business, with a small business score of 40.2. Bethany is its best city for small business at 85.3.
- Oregon, all states
- #42 of 50
- Population
- 33,106
What Small Business Should Know About Oregon
Oregon ranks #42 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: 33/100) with 5.2% 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. Workforce quality may require investment in training — the education score of 36/100 suggests gaps in preparation. A typical home value of $496,113 is expensive enough that employee compensation expectations may be higher.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Bethany | A+ | 85.3 | 75.7 | 98 | 100 | — | 33,106 |
| 2Lake Oswego | A+ | 68.5 | 68.7 | 96 | 77 | 32 | 40,381 |
| 3Tigard | B+ | 62.6 | 60.9 | 75 | 62 | 53 | 56,011 |
| 4Aloha | B+ | 62.2 | 58.8 | 70 | 58 | — | 52,389 |
| 5Hillsboro | B+ | 60.9 | 60.9 | 71 | 61 | 50 | 108,231 |
| 6Bend | B+ | 57.9 | 62.2 | 66 | 59 | 45 | 103,390 |
| 7Beaverton | B+ | 57.2 | 60.0 | 65 | 58 | 37 | 97,812 |
| 8Redmond | B | 56.6 | 58.7 | 59 | 50 | 63 | 36,092 |
| 9Oregon City | B | 56.3 | 57.8 | 70 | 58 | 35 | 37,755 |
| 10Portland | C+ | 53.2 | 54.3 | 56 | 53 | 38 | 641,165 |
| 11Keizer | C+ | 52.8 | 54.1 | 62 | 51 | 35 | 39,082 |
| 12Salem | C | 50.0 | 51.9 | 47 | 47 | 45 | 178,865 |
| 13Gresham | C | 48.6 | 52.0 | 50 | 46 | 38 | 112,378 |
| 14Springfield | C | 47.4 | 50.7 | 43 | 43 | 41 | 61,499 |
| 15Corvallis | B | 47.3 | 56.7 | 24 | 47 | 44 | 59,960 |
| 16Albany | C | 47.3 | 52.2 | 49 | 45 | 32 | 56,839 |
| 17Medford | C | 47.0 | 49.7 | 48 | 42 | 37 | 86,315 |
| 18McMinnville | C+ | 46.8 | 54.2 | 43 | 45 | 21 | 34,596 |
| 19Eugene | C | 46.1 | 51.9 | 34 | 44 | 37 | 179,591 |
| 20Grants Pass | D | 42.0 | 47.5 | 40 | 31 | 29 | 39,311 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Oregon for Other Lifestyles
Frequently Asked Questions
Is Oregon a good state for small business?
Oregon ranks #42 out of 50 for small business with a persona-weighted score of 40.2/100. Its strongest relevant category is Transportation (66/100) and its weakest is Growth (23/100).
What is the best city for small business in Oregon?
Bethany ranks #1 in Oregon for small business with a score of 85.3/100, followed by Lake Oswego and Tigard.
What factors are most important for small business in Oregon?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.