Savvy and innovative students can take comfort knowing that Eugene recently got a nod for its business start-up environment. The city, however, was almost left out.
Fortune Small Business magazine ranked Eugene as the 96th best place in the country for entrepreneurs to start a business out of 100 cities the magazine published as part of its April cover story.
The magazine called Eugene an “edgy college city, emblematic of alternative and ecological ideas and ideals,” but said the city may be “too countercultural for some.”
Local entrepreneurs and business educators say Eugene deserved to make the list, but they expected the city would be ranked higher.

The magazine first looked at 296 cities designated by the U.S. Census Bureau to measure business friendliness, which was based on factors such as tax rates, job growth and number of airline connections within a 60-mile radius.
The magazine then examined lifestyle factors, such as the number of parks, health care systems and average temperatures. The list narrowed further after staffers examined the number of start-ups, population growth and crime rates. Finally, reporters interviewed entrepreneurs and business experts to create the list.
Jim Lindly, director of Lane Community College’s Business Development Center, said in an e-mail that Eugene was “robbed,” especially considering that Corvallis was ranked No. 48, and Bend was ranked No. 87 – both ahead of Eugene.
“We have UO, Lane Community College and Northwest Christian College that produce a lot of smart, skilled and industrious people who are independent thinkers,” Lindly said. He added that plenty of resources help entrepreneurs, including the Lane Metro Partnership, among others.
A prime location also helps Eugene entrepreneurs, Lindly said.
“We are situated well above one of the largest economies in the world in California and also have great access to sell to the Pacific Rim countries,” Lindly said.
Dick Sloan, an undergraduate mentor in the Lundquist College of Business, said he considers Oregon more as a whole entity in the ranking.
“I think Oregon is kind of ranked from the very top down, since there are so few population centers in the state,” Sloan said. “We all live and breathe with each other’s success.”
He said the University, for example, connects with business executives and University graduates throughout the state, especially Portland, to help students explore business ideas.
“I’m seeing more connections between companies and entrepreneurial students within our program,” Sloan said.
University student John Robinson, co-founder of GolfingMyWay.com, said the University plays a strong part in Eugene’s business community.
“Having a university is important to facilitate launching a businesses. It’s important to have that academic field be part of that,” Robinson said, adding that the University community provides an audience for entrepreneurs to launch new products at. “Eugene has a little bit of everything – no matter what you’re into.”
But Eugene may have at least one downside.
Local entrepreneurs say they have difficulty finding investors.
Robinson said GolfingMyWay had to look across the Northwest to find funding.
Mark Frohnmayer, University President Dave Frohnmayer’s son, who helped found the video game development company Garage Games in Eugene in 1999, said Eugene business start-ups sometimes experience similar problems.
“One challenge here is that it can be hard to access capital,” Frohnmayer said. He added that places such as Bend, a resort town situated among the Cascades, are home to California transplants with money to invest.
Eugene’s brightest spot, Frohnmayer said, is that resources exist to support those with new ideas.
“Eugene is a highly creative town,” Frohnmayer said. “There’s a bunch of forward thinkers here.”
Frohnmayer said he would like to eventually see some kind of rail line connecting Bend, Portland and Eugene to further link business communities there.
The fact that Eugene was ranked fourth from the bottom of the list may be a blessing.
Lindly said Eugene can be the “secret place” for entrepreneurs to start a business. He said the city’s climate, small crowds, manageable traffic, favorable tax rates, flight connections, health care and school systems help attract those wanting “the good life.”
“Don’t tell anyone,” he said.
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