Oregon Rural Entrepreneurship Initiative

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State-led ecosystem development program providing grant funding and technical support to rural communities to build tailored entrepreneurship infrastructure and support services.
What are the main aims and objectives?

The primary mission of the Oregon Rural Entrepreneurship Initiative is to empower rural communities to support entrepreneurs and small business growth; to strengthen and consolidate entrepreneurial ecosystems across Oregon's rural communities; to support entrepreneurs at each stage of business and personal growth through fast flow of talent, information, and resources; and to create place-based enterprises that boost local economies.

More specifically, the initiative aims to create economically diversified rural communities with greater local control and less dependency on outside forces; to build resiliency by making businesses more likely to survive crises through access to comprehensive resources; to reduce brain drain of young talent from rural communities by creating economic opportunities for graduates to build careers locally; to help businesses retain profits generated within communities for local reinvestment; to foster inclusive and equitable entrepreneurship support emphasizing diverse populations and low-income people; to support proven technology-based economic development initiatives including proof-of-concept programs, commercialization, and venture acceleration; to cultivate strong entrepreneurial ecosystems through community-led solutions recognizing that residents best understand their community needs; and to provide tailored approaches reflecting local priorities rather than "one size fits all" programming.

How does the program work?

The Oregon Rural Entrepreneurship Initiative operates through multiple coordinated mechanisms with different governance structures but complementary objectives, primarily through the Rural Opportunity Initiative (ROI) and Growing Rural Oregon (GRO) programs:

Rural Opportunity Initiative (ROI) - Grant Program:

The ROI program, administered by Business Oregon, provides grant funding to rural communities to develop entrepreneurial ecosystem infrastructure. In the 2025-2027 biennium, Business Oregon allocated approximately $2.1 million for the ROI Grant Program, with 18 organizations selected as recipients receiving $1,945,000 total in grant funding. Grant recipients work with consultants to enhance local capacity and participate in peer learning opportunities with other ROI communities, with implementation timelines typically extending through June 30 of the biennium.

Growing Rural Oregon (GRO):

GRO operates through a community ecosystem framework developed in collaboration with e2 Entrepreneurial Ecosystems. Participating communities commit for 3-5 years and receive targeted coaching, funding for GRO-focused staff, and access to resources. GRO supports rural communities currently in its cohort, facilitating community identification of economic development priorities, connection of entrepreneurs to resources, and development of "whole community" approaches emphasizing trust, collaboration, and cooperation.

Entrepreneurial Ecosystem Components:

All initiatives operate within an entrepreneurial ecosystem framework comprising multiple elements: entrepreneurs requiring direct support (training, advising, information access); community organizations and networks providing support services; financial access including loans, grants, and investment funds; and enabling policies and infrastructure.

Community Hub Development:

Programs support development of "Centers for Entrepreneurship"—essentially one-stop-shops for entrepreneurs and small businesses providing coordinated access to technical assistance, mentoring, financing, and networking.

Services and Support:

Participating organizations and communities provide diverse services including business training, one-on-one business advising, business plan development, access to capital and financing, mentoring and networking, and youth entrepreneurship education.

What is the overall cost?

The overall budget of the program is not known, however, In the 2025-2027 biennium, Business Oregon allocated approximately $2.1 million to the ROI Grant Program, with 18 organizations selected as recipients receiving $1,945,000 in total grant funding in the most recent award round.

How was it implemented?

The rural entrepreneurship support work in Oregon emerged from recognition among policymakers, foundations, and community organizations that entrepreneurship was critical for rural economic vitality and resilience. Prior to formal programs, various community-based efforts existed, but lacked coordinated state strategy.

The Rural Opportunity Initiative was established by Business Oregon as the state's strategic effort to support rural entrepreneurship through community-based ecosystem building. The program was conceived around principles that communities best understand their own needs and that "one size fits all" approaches are ineffective in diverse rural contexts.

Funding for the original ROI program was temporarily cut. In response, the Ewing Marion Kauffman Foundation funded a two-year Rural Opportunity Initiative program (2019-2021) supporting six Oregon rural communities through Rural Development Initiatives (RDI), in partnership with Foundry Collective and Kelley Nonprofit Consulting. This program filled the gap during state funding lapse and generated significant lessons learned documentation.

In 2021, The Ford Family Foundation launched Growing Rural Oregon (GRO) to support rural communities in building entrepreneurial ecosystems. GRO explicitly operates within the e2 Entrepreneurial Ecosystems framework, field-tested for nearly two decades by NetWork Kansas and dozens of U.S. communities.

Following temporary funding gap, Business Oregon resumed and expanded ROI program operations with state budget allocations. The program evolved to emphasize "whole community" approaches and ecosystem development rather than individual support services.

What impact has been measured?

The ROI program has supported 11 funded projects across multiple bienniums with participation from six communities in the Kauffman Foundation program round alone. The 2025-2027 ROI round selected 18 grant recipients distributed across Oregon's rural regions.

Research from the Kauffman Foundation program documented that 176 entrepreneurs from six participating communities accessed diverse services through ROI-supported community organizations, including business training, advising, financing, and mentoring. This represented significant resource access for rural entrepreneurs who historically face geographic barriers to support services.

ROI programs leveraged substantial additional funding: over $950,000 in funds leveraged plus $500,000 OCF grant for Coos Bay, demonstrating ability to mobilize private and philanthropic capital beyond direct grant funding.

 

What lessons can be learned?

Financial constraints in building this capacity is one of the larger constraints. Local leadership is ultimately the most important thing. Many rural communities have a great deal of underutilized real estate assets, but without a strong local collabrative that can weather politics and self-serving interests, any investment efforts will not be successful. Cultural shifts toward entrepreneurial thinking can also take time and must be done at the local level. This is a hard thing for the state to design and build a traditional set of metrics for because each region has unique needs and opportunities that will naturally develop at a different pace.  

Notes + Additional Context

The rural entrepreneurship initiative was founded after listening to hundreds of entrepreneurs and their experiences building a business in Oregon. We found that services were 1) invisible to the entrepreneur, 2) inaccessible by some kinds of industries or populations, 3) insufficient or unavailable at the local level. 

CURATED BY

Heather Stafford

United States