Portland small businesses see more financial issues than other small businesses across US, survey says

PORTLAND, Ore. ( KOIN ) – A study by the Federal Reserve found small businesses in Portland encountered more financial struggles than other small businesses across the United States in 2023.

The Small Business Credit Survey — first reported by The Oregonian — was conducted September through October 2023 for businesses with fewer than 500 employees.

The findings, which were released in May, include results for small businesses in the Portland metro area spanning Hillsboro, Oregon to Vancouver, Washington.

When it came to revenue changes in the last year, 50% of Portland small businesses saw increased revenue compared to 43% of small businesses in the U.S., according to the survey.

On the national scale, more small businesses saw decreased revenue than Portland area businesses (39% and 35% respectively.)

Additionally, 45% of Portland small businesses said they were operating at a profit compared to 47% of U.S. small businesses. Forty-three percent of Portland small businesses said they operated at a loss compared to 35% of small business across the U.S.

Despite 35% of small businesses seeing revenue decreases, Portland small businesses still anticipate more revenue in the coming year compared to other small businesses in the U.S. (65% compared to 57% respectively.)

In the survey, small businesses were also asked to self-report how they rank their financial situation.

More Portland small businesses reported a “poor” financial situation (27%) compared to other U.S. small businesses (20%.)

Some of the struggles reported by Portland small businesses in the last year include hiring and retaining qualified staff (reported by 63% of small businesses) compared to small businesses across the U.S. (54%.)

Local businesses also reported supply chain challenges (52%) compared to other U.S. small businesses (41%.)

A large portion of Portland small businesses also reported challenges with increased costs of goods, services, and wages (92%) compared to the rest of the U.S. (77%.)

Most of the surveyed businesses were at least 11 years old, including 48% of Portland businesses and 50% of other U.S. businesses.

Most of the annual revenues for the surveyed businesses ranged from $100,000-$1 million, including 61% of Portland small businesses and 51% of U.S small businesses.

The Federal Reserve noted survey percentages may not total 100% because of rounding.

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