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|Articles - Jan/Feb 2012|
|Thursday, January 19, 2012|
Page 3 of 5
Tripwire, Hanna Andersson and YoCream weren’t startups when they sold. They were established companies. But some of the challenges they faced ring true for a new generation: Startups are responsible for more job growth in the state than any other sector, noted Nick Fowler, CEO of Perpetua Power Source Technologies, during this past December’s Oregon Leadership Summit. Where the state falls short, he added, is securing the investment capital that allows companies to scale globally.
Scaling — and keeping — Oregon companies wasn’t always a big problem. “Thirty years ago, Oregon was home to quite a number of large companies of national or international stature,” says Jeffrey Wolfstone, another Lane Powell attorney who focuses on M&A. “Relative to the size of the population, that hasn’t kept up. In fact, it’s gone backwards.”
To be sure, globalization plays a big role in the changing corporate landscape. Yet the Oregon pattern contrasts with the dynamic in Seattle, where over the past two decades a number of scrappy startups such as Amazon and Starbucks have blossomed into international powerhouses, now standing alongside the region’s largest longstanding employers such as Boeing and Weyerhaeuser.
“Maybe it’s something in the water here,” muses Wolfstone, “A different type of ambition, or we’re more of a lifestyle city.” Or, as one Portland investor put it, Oregon is a bit lacking in the “animal instinct.” Others point to more material drivers. Oregon’s corporate tax structure favors startups because “you’re losing money,” but acts as a deterrent to growing big, says Ryan Deckert, president of the Oregon Business Association.
Unlike Seattle, Boston, San Francisco or New York, Oregon lacks a major research university — “a geographical anomaly,” says Sue Levin, a former Nike executive who in 1999 co-founded Lucy Activewear, which was sold to a Greensboro-based private equity firm in 2007.
To grow companies “you have to have brains, wealth and business savvy in significant proportions and in proximity to each other,” says Levin, who is now director of the nonprofit Stand For Children. “You do not have it in Eugene and you have it in small quantity in Portland.”
Another “unfortunate thing” is there are not enough Oregon acquirers, says Levin, adding that it takes $50 million to get to profitability in retail. “The only company in Oregon that could have bought Lucy, literally, was Nike.” Levin adds that the original objective was to take Lucy public and “build a large Oregon company,” a decision that was nixed by the company’s original Silicon Valley investors “who had pretty high expectations for return on investment.”
Friday, September 12, 2014
BY TOM COX | OB BLOGGER
I often talk about what leaders can do. What about followers? If you’re a team member and you’d like to add positivity to your team, what might you do?
Wednesday, October 15, 2014
BY DIANE BUISMAN
Some common misconceptions employers have about marijuana.
Wednesday, October 22, 2014
BY JOE ROJAS-BURKE & KIM MOORE
Oregon Business reports on the visa squeeze, the skills gap and foreign-born residents who are revitalizing rural Oregon.
Thursday, October 02, 2014
More than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.
Thursday, September 25, 2014
BY LORI TOBIAS
Business has been good to Laura Anderson, leading some to suggest she must be awfully lucky to find such success in a business notorious for failure. But luck’s had little to do with it.
Friday, September 26, 2014
BY JASON NORRIS | GUEST BLOGGER
This post focuses on the recent release of the new Apple iPhone as well as Alibaba's IPO, the largest U.S. IPO in history.
Thursday, September 25, 2014
In our cover story this month, Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, discuss their rapidly growing businesses and Portland’s red hot food scene. The conversation provides an interesting lens through which to explore trends in the grocery store and restaurant sectors.
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Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
Rotary’s Oregon Ethics in Business aims to raise consciousness about business ethics by honoring exceptional companies.
Barran Liebman’s annual employment law seminar is an industry classic.
Business leaders descend on Portland in December for the region’s largest environmental conference and trade show.
More than 400 "Change Makers" will gather to invest in a socially sustainable community.