Oregon seeing higher business growth than all other states, study shows

PORTLAND Ore. (KPTV) – Businesses big and small took a hit they never expected during the pandemic, and Portlanders saw the evidence in the empty storefronts- but the tide is turning.

A new study from DesignRush shows that Oregon had more business growth than any other U.S. state between September 2022 and 2023.

The study, which used data from the Bureau of Labor Statistics, found that Oregon had a 9.9% increase in new businesses- that’s a net increase of 18,273 businesses.

Entrepreneur Daniel Kim, the Founder and CEO of Lit Motors, started his business in San Francisco but chose to move it to his hometown of Portland a few years ago.

“I chose Oregon and Portland specifically because they have a really strong urban planning department here, and they kind of lead the United States for urban planning,” Kim said. “Also, there’s a really strong designer and engineering and just kind of creative marketing culture here.”

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Kim’s company owns 22 patents, and one of them is for an invention he’s been working on for more than ten years- a two-wheeled, electric, self-balancing car.

“Why couldn’t we make a hyper-efficient vehicle that is all-weather, for all-year-round driving, that was fun and exciting and safe?” Kim said. He hopes to have the vehicle available for sale within the next two to three years.

Cara Turano, the President and Executive Director of the Oregon Entrepreneurs Network said that statewide business growth now is even greater than it was pre-pandemic.

“2020 was definitely a dip in terms of new businesses starting, but 2021 through 2023 has been a skyrocket,” she told FOX 12. “For one, we’ve had a healthy economy for a long time, two, we’ve had a bunch of great organizations that provide entrepreneurs support locally and in Portland and statewide. Three, we have a lot of different government incentives for people to start businesses here, and four, we have a really strong buy and support local culture.”

She said the growth in 2024 is already outpacing that of the previous year.

Monique Claiborne is the President and CEO of Greater Portland Inc., an organization that provides development services for growing businesses. She said traded-sector businesses (those that sell goods or services outside of the area where they’re located) make up a large portion of those businesses, which means fresh dollars are being brought into the area.

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“I think that we have a strong talent base, I think that we have a strategic West Coast location, I think that we have a thriving, educated population here, and so the ecosystem is ripe for businesses to succeed in the region,” Claiborne said. “There is a willpower to keep businesses here, there’s a willpower to advance and grow businesses here and I think we will see the Portland market revitalize.”

Kim hopes that when his revolutionary car hits the roads, it will inspire others to look at Portland as a logical place to plant entrepreneurial roots.

“There’s a young, vibrant culture here that wants to create a new world that’s more sustainable and more equitable,” Kim said. “Portland and Oregon really is kind of the last frontier on the West Coast, so it just kind of seems like naturally the next place for an economic boom.”

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