The Pros of Planting Startups in Smaller Cities

Quality of life and local incentives can lend a competitive advantage to entrepreneurs when they need it most

Selected States:

Montana

Bozeman

Population: 35,782

Labor force: 22,545

Startups per 1,000 people: 6.81

Small business per 1,000 people: 65

What to know about starting up in Bozeman:

"Bozeman is a community that’s enjoyed rapid growth these last few years. For entrepreneurs who have perhaps lived elsewhere and have been accustomed to amenities or services offered in bigger cities, a growing community like Bozeman offers an opportunity to provide a service or an amenity that isn’t present here yet. There’s the obvious challenges of getting product to a place like Montana and the challenge of introducing people to a product that they maybe aren’t as familiar with. Bozeman has an influx of people from both coasts—for them it’s a relief. For people that have lived here perhaps even for generations, perhaps it’s a discovery."
-Kevin Stein, co-owner of specialty seafood retailer and wholesaler Montana Fish Co. http://montanafishcompany.com/

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Idaho

Boise City

Population: 199,846

Labor force: 110,931

Startups per 1,000 people: 4.21

Small business per 1,000 people: 48

What to know about starting up in Boise City:

"In this particular valley, there is a lot of energy and intellectual property that we could use for innovative solutions in the green and clean tech arena, and it comes from decades of companies like Hewlett Packard and Micron and others bringing a strong culture of engineering and creativity to this area. We have a very deep engineering pool that we can tap. We also have a very creative environment from my experience. It’s a little bit like Austin without all the great music."
-Clay Young, CEO, solar-powered street lighting company Inovus Solar http://www.inovussolar.com/

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Wyoming

Laramie

Population: 25,351

Labor force: 14,192

Startups per 1,000 people:3.21

Small business per 1,000 people: 45

What to know about starting up in Laramie:

"It’s incredibly inexpensive. There’s no taxes, either personal or corporate. It cost us like $50 to register the company and that’s it. If we hire a new employee, the state gives us $4,000 to train them. It’s a really educated community. The University of Wyoming is here, so you have access to all the talent in town. There’s a lot of what I call displaced Wyomingites –- people who left because they couldn’t find a job and want to move back here."
-Jerad Stack, CEO, software maker Firehole Technologies http://www.fireholetech.com/

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North Dakota

Fargo

Population: 92,136

Labor force: 58,518

Startups per 1,000 people: 3.50

Small business per 1,000 people: 48

What to know about starting up in Fargo:

"There’s quite a bit of venture capital now compared to 10 years ago. There’s private as well as government funding and they actually work together. They have a tech incubator that I think is outstanding. There’s a lot of technical talent, because Microsoft’s second largest campus is here, and then you’ve got all the universities. The people in general are very hard working. They’re dependable, they show up on time, they work hard. You hate to use the old Midwest stereotype but it does really apply in Fargo."
-Brian Gramer, serial entrepreneur, founder and CEO of advertising technology firm Avenue Right http://www.avenueright.com/

By John Tozzi

Full Story: http://www.businessweek.com/smallbiz/content/mar2009/sb20090327_385972.htm

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