Hot cities

Entrepreneur, Oct, 1998

Consider, for instance, the strong presence of high-tech firms in Spokane. Service businesses - particularly those in the health-care industry - are also significant to the local economy. Of special interest, however, is the recent surge in manufacturing. Employment in Spokane's manufacturing base has grown roughly 3 percent during the past two years. This certainly helps put the green in this region of the Evergreen State.

Yet even as Spokane's economy moves toward greater diversification, the city's entrepreneurial resources are priding themselves on unification. In a bid for one-stop convenience, the fledgling Spokane Regional Business Center houses everything from the city's chamber of commerce to various economic development organizations and the Spokane Area Business Information Center. The latter is one of only four sites nationwide to be designated an IBM Small Business Think Center.

Naturally, there are concerns as well. Despite pressure to change it, Washington's policy of taxing companies' gross receipts remains something of a thorn in the side of entrepreneurs.

Then, too, there is the delicate balance that must be struck between the heralded boom in manufacturing and the beautiful scenery local residents are so proud of. And, yes, there is migration of many of the region's young people to the high-paying (and high-profile) behemoth that Bill Gates built. The increasingly tech-savvy Spokane, however, won't let Seattle - or any other city, for that matter - rain on its parade.

PORTLAND/VANCOUVER

Maybe success isn't everything it's cracked up to be. That seems to be the ultimate lesson learned from the recent experiences of the Portland/Vancouver MSA, which ranks 23rd in the West this year. A perennial winner in our best cities ranking, greater Portland has justly earned its reputation as an entrepreneurial city. Yet its much lower-place finish this year reflects not only how difficult it is to keep a winning streak going but the double-edged nature of success itself.

Had it not enjoyed such success, Portland probably wouldn't have attracted an influx of Japanese-owned firms into its city limits - geographic proximity to the Pacific Rim notwithstanding. This boon, however, makes Portland vulnerable to the effects of the current Asian economic crisis. Similarly, the high quality of life and low unemployment enjoyed in Portland draws transplants from other states - d strains city resources in the process.

Not to be discouraged, Portland's leaders and citizens are all the more determined to plan for a prosperous future. Toward that end, Portland continues work on a light-rail transit system to lessen congestion throughout the metropolitan area. Additionally, greater emphasis is being placed on school-to-work and welfare-to-work programs. And, spurred on by the not-for-profit Oregon Entrepreneurs' Forum (OEF), Portland is taking care to nurture its fast-growing companies through business mentoring as well as the Oregon Emerging Business Initiative, sponsored by the OEF.