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What sets Oregon apart from other US states is its extremely diverse natural landscape featuring deserts, mountains, shrublands, and huge water basins. This factor has greatly contributed to the state's economic shift toward agriculture, fishing, and tourism.
Though not as strong as its close neighbors California and Washington, the Beaver State has moved to the 18th position in “America’s Top States for Business” made by CNBC in 2022 as compared to the 35 and 29th positions in previous years accordingly.
The state is widely known for its business-friendly climate. And despite being home to such corporate giants as Intel and Nike, Oregon largely relies on small enterprises (SMEs) in maintaining a stable and welcoming economic environment.
Our overview of the SME statistics in the state will help you plan your future activities when starting a venture in this state.
There are nearly 397.000 SMEs in OR that make up 99.4% of all businesses in the state;
According to US Census data, small businesses employ 893.758 workers making nearly 55% of the total OR workforce;
The gross domestic product of OR in 2021 was $270 billion showing a nearly 10% growth as compared to the previous year;
As of 2022, the average annual salary in OR is $61.855. This figure has jumped up by nearly 90% during the recent 5 years showing a steady economic rise in the state;
Per capita consumption expenditure in OR hits a $42.055 mark;
88% of OR exporters are smaller private companies that generated $4.8 billion out of the $22.7 billion of state export;
Newsweek reports that there are over 11.500 SMEs per 100.000 of the population in the state;
The state had a 1.5% share in all new business applications across the US between 2021 and 2022;
Oregon SMEs gravitate toward non-employer and mini companies with 1 to 19 employees;
Over 72% of the total OR workforce is engaged in the accommodation and food service sector;
The most popular sector with nearly 64.000 entities in it is professional, scientific, and technical services while the mining, quarrying, oil, and gas industries are the least popular, with less than 1000 SMEs;
For 2019-2020, SMEs created 12.232 net jobs in OR;
As of 2022, has a record-low unemployment rate of 3.6% showing nearly a 1% decrease compared to the previous year.
Top 10 Industries for Small Businesses in OR
Professional, scientific, and technical services
Real estate, rental, and leasing
Other services (excluding public administration)
Healthcare and social services
Administrative, support, and waste management
Entertainment and recreation
Transportation and warehousing
Accommodation and food services
OR Small Business Demographics
Female owners control 149.823 companies making up about 47% of the total SME count in OR. About 131.000 women-owned entities are non-employers;
Male-owned SMEs account for 200.933, with only 25% of companies using hired workforce;
SMEs owned by women and men equally comprise 26.131 entities making up less than 7% of the total SME number in the state;
Women employees represent 47.3% of the workforce in the state;
23.826 SMEs are controlled by veterans which equal 6% of all micro firms, and veterans make 5.3% of OR employees;
With a total population of 4.226.115 people, OR is on the smaller side among other US states, yet, it still features ethnic diversity when it comes to business;
Hispanics are the largest ethnic group in the state owning 6.2% of SMEs and representing 13% of the OR workforce;
Other racial minorities make 12.3% of the workforce and their SME ownership is split as follows:
Black/ African Americans: 2.2%
American Indians and Alaska Natives: 1.8%
Native Hawaiians and Islanders: 0.5%.
OR Small Business Formation
Limited liability companies are the most popular business structure in Oregon making 236.436 entities out of SMEs in the state;
Under the SOS annual report, in 2021, the number of OR LLCs showed an 8.1% growth as compared to 2020;
To launch an LLC in Oregon, you just need to file the Articles of Organization with the state department and pay a $100 filing fee to the state;
To lawfully operate your venture within the jurisdiction, you should appoint a registered agent and submit a state report annually that costs $100;
Owners of LLCs taxed as pass-through entities will be exposed to paying an income tax on their part of the LLC profit under individual rates that range from 4.75% to 9.90%;
Standard LLCs and those taxed as S-Corps should pay an excise tax at a fixed rate of $150;
For LLCs taxed as C-Corps, excise tax rates will vary depending on the income level. Thus, a 6.6% tax is charged over the first million of income, and all income above $1 million is taxed at a 7.6% rate;
LLCs with a C-Corp tax status that report no income or net losses are still exposed to an excise tax. The minimum rate is $150 for turnover below $500.00. The maximum rate is $100.000 for turnover above $100 million;
Unlike many other states, OR has neither a sales tax nor use or transaction tax, thus, stimulating and promoting commercial activities on its territory.