20 Best Cities For Small Business

Portland, Oregon, rains. But never before has it reigned quite like this. With an economy as solid as an oak, it's hard to imagine that just over a decade ago, Portland's economy was falling faster than you could say "Timber!"

A high-tech sector now provides the roots the city has long needed. Twenty years ago, this industry wasn't even a blip on Portland's screen; today, it is the largest employer in the state. Local technology manufacturers such as Intel court a multitude of satellite suppliers, while a recent wellspring of investment capital has given birth to many cutting-edge companies, particularly in the software and multimedia segments. And the capital just keeps on coming, thanks to events like this year's first annual Venture Oregon, which attracted more than 50 out-of-state venture capitalists.

And yet the strength of Portland's economy lies in the fact that, no matter how successful the high-tech arena is, it is far from the city's only star player. Portland also benefits from having the largest export port on the West Coast, as well as a burgeoning food-processing industry. Meanwhile, opportunities continue to bloom in the electronics manufacturing industry.

Perhaps the best way to describe Portland is as a big city with a small-town attitude. The premium entrepreneurs place on quality of life also positions them on the leading edge of a nationwide trend--homebased businesses. And you'll find no cutthroat mentality here: The small-business community works together, creating a healthy environment for all. Businesses network, but without the edge. Meanwhile, the state's government, banks, corporations and nonprofit organizations add to this unique environment by providing entrepreneurs with the support they need to start and expand their businesses.

Some clouds loom on the horizon, though. The housing market, which used to lure out-of-state buyers with its unbelievably low prices, has seen a quick appreciation in the past two years. Recently, a legislative session failed to solve the city's chronic public-education funding problem and defeated a transportation package that would have done little more than maintain the quality of roads and bridges, some of which need improvement.

In the end, the only potential enemy this small-business powerhouse faces is itself. Some fear Portland's economic heyday has made legislators overly confident. Meanwhile, others are optimistic that small-business, the hero of the city's economy, will not be forsaken. Always on the lookout for entrepreneurs with the potential for rapid growth, Portland is, and will continue to be, a city that's coming up roses.

This article was originally published in the October 1997 print edition of Entrepreneur with the headline: 20 Best Cities For Small Business.