The first thing you notice about Bozeman, Montana is that it doesn't look like many other places. Located in the Gallatin Valley in the southwestern part of the state, the town is flat as a table top and surrounded by gorgeous, snow-capped mountains. After visiting with local entrepreneurs and others working hard to improve the economic landscape in Montana, it becomes clear that more than geography is noteworthy in Bozeman. For one thing, the town is home to 85 high-tech companies.

Bozeman looks bigger than a town of 30,000 people. It boasts a good university -- Montana State University -- and a booming tourist trade. Nearly a million tourists pass through Bozeman every year -- visiting nearby Yellowstone National Park or taking in some trout fishing. A couple of big movies were filmed around Bozeman -- "A River Runs Through It" and "The Horse Whisperer," both of which reinforced the idea that Montana is a good place to get away from traffic and crowds. These are among the factors drawing people -- both natives who once moved away and those who want to get away -- to Bozeman. Many of those coming here are entrepreneurs. Having been drawn to the physical attributes and lifestyle, starting and growing a business seems to be a great way to earn a living.

But Bozeman's entrepreneurs face many challenges, according to David Bayless, a self-described venture catalyst. In a recent Inc magazine article he wrote ("Know Your Place," www.inc.com), Bayless describes Bozeman's history and culture. He also backs up and dispels some myths about the new economy and examines the Bozeman region's chances of becoming an entrepreneurial hot-spot.

While Bozeman does not have some drawbacks of Silicon Valley, such as congestion and a high cost of living, it lacks many of the attributes of Silicon Valley or Seattle or Boston or Austin. According to Bayless, local Bozeman entrepreneurs are starved for contact with peers and mentors and they don't enjoy a broad, deep pool of expertise to help staff and manage their businesses. And entrepreneurial companies have difficulty in finding appropriate financing. These fast-growing companies often are not suited to employ traditional bank-debt financing and often are reluctant to seek professional venture financing that requires a near-term "liquidity event," such as an IPO or merger or sale.

Bozeman's entrepreneurs are no different from entrepreneurs across the country in their basic needs. To build and grow their businesses, Bozeman entrepreneurs need access to top-notch talent and technology, access to the right kind of capital, access to networks that provide peer-to-peer counseling and expert services, and a supportive infrastructure.

Bozeman is working hard to make sure it offers these attractive features to entrepreneurs. For example, Montana State University (MSU; www.montana.edu) is an important resource for Bozeman entrepreneurs. Research universities play a big role in helping entrepreneurial communities develop, and MSU is no exception. Several university centers and programs are helpful in spreading technology into the marketplace, improving overall education, and supporting entrepreneurs.

For example, MSU's Spectrum Lab (www.spectrum.montana.edu) conducts state-of-the-art research in optical electronics and helps move the new technology to Montana companies. The Burns Telecommunications Center (http://btc.montana.edu) is a laboratory for creating a more accessible 21st century university through increasing access to lifelong learning, especially for isolated individuals and communities, and expanding partnerships between universities and public/private organizations.

In addition, many of Bozeman's high-tech entrepreneurs have benefited from the MSU TechLink Center (http://techlink.msu.montana.edu). TechLink helps the private sector commercialize technology from NASA, federal laboratories, and universities to solve industry problems, create or exploit business opportunities, and stimulate economic development.

For some entrepreneurs, TechRanch (www.techranch.org) is the logical place to go once they have access to new technology. TechRanch is a Bozeman high-tech business incubator specializing in software and Internet-related businesses that aims to jump-start fledgling businesses so they can be close to self-sufficiency in 18 months or less. The incubator helps new businesses build a business model that will allow them to attract capital and compete in the highly competitive environment of the new economy.

TechRanch's businesses are part of a ready-made network that links them to capital, experts, and technology. To help its business get financing, TechRanch has relationships with regional and national venture capitalists and manages the Bridger Private Capital Network -- the only angel network in the state. TechRanch also has created a network through its Board of Advisors that includes experts in financing, IT, marketing, legal and human resources. And its service providers supply marketing, legal, and communication support. The network also gives its members access to ready-for-marketplace technology through its partnerships with TechLink and MSU. In addition, a new program at MSU?s School of Business links students seeking real-world business experience to incubator companies needing practical and research skills.

Several TechRanch tenants are developing technology obtained through TechLink connections. HyPerspectives (website under development) is a company developing an innovative and cost-effective way to measure environmental factors and provide user-friendly data for resource management planners (using NASA-developed technology). THI Riverworks (www.troutheadwaters.com) is a software company that uses advanced engineering software for natural approaches to river restoration and stream bank stabilization.

Overall, Bozeman is not just relying on MSU, TechLink and TechRanch to fuel its local economy. Bozeman's business and civic leaders recognize the importance of entrepreneurship to economic growth and are coming together to make sure entrepreneurs with good ideas have access to capital and other services and support provided by entrepreneurial networks.

The Gallatin Development Corporation (GDC; www.bozeman.org), for example, is an economic development organization that provides information and services to new and expanding businesses, including its roster of growing manufacturing firms and the state's largest group of technology companies. The GDC also sponsors the Gallatin Valley Technology Alliance (GVTA), a technology support network that is open to all GDC members. GVTA holds network luncheons on the fourth Thursday of each month and features speakers on topics such as financing and fundraising and legal issues involved in the transition from start-up to viability in a technology business.

Many theorists believe a "critical mass" of entrepreneurs and service providers is necessary for a truly entrepreneurial community. Montana is one of the most sparsely populated states in the nation. Its small population and large distances make continuous networking problematic. On the other hand, the state's diverse culture and appealing setting are magnets for nascent entrepreneurs and investors. As Bayless said in his Inc article, "I am in awe, but I'm also terrified of the fragility of our newly vital, but very isolated economy." While all of the important elements in Bozeman are working hard to support an entrepreneurial community, only time will tell how successful it will be.

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