Accounting Customer service Hiring & human resources Legal Management Raising money Sales & marketing Selling a business Startup Technology Small & Global How We Got Started Biz Books Innovators Owner Tested Tech Edge Best Bosses Next Little Thing Startup Showdown Current Issue Archive

The call of the mountains

Why are entrepreneurs flocking to Boise, Missoula, and other mountain towns?

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

19_boise.03.jpg
A bike break on Boise's Corrals Trail

(FORTUNE Small Business) -- Kevin Benedict worked for years at a Seattle software company, but burned out from the grueling hours, heavy traffic, and high cost of living.

"We hardly saw our kids," he says. And so, in 2001, he moved to Boise, where he took a management position at semiconductor giant Micron Technology (MU, Fortune 500). Three years later Benedict launched Mobile Dataforce, a software startup that sells mobile productivity applications.

Thousands have followed Benedict's path in recent years. Boise and other Rocky Mountain cities scored higher than the rest of the U.S. for entrepreneurial activity, according to the Kauffman Index, an annual survey conducted by the Kauffman Foundation, a nonprofit based in Kansas City, Mo., that promotes entrepreneurship. Montana boasts the highest rate of startups a month (0.6% of adults) of any state. Why the boom?

The Mountain States offer cheap real estate, educated workers, uncrowded airports, cultural amenities, and, in many areas, good public schools The beginnings of this bonanza date to the 1970s and 1980s, when firms such as IBM (IBM, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), and Micron (MU, Fortune 500) set up shop in Idaho and Colorado. These firms chose the Rockies in part to avoid employee poaching by coastal competitors.

The strategy was not entirely successful: With average commercial rents of $12 a square foot (compared with the national average of $32) and average state and local taxes at $2,728 a year (compared with $3,736 nationally), the pull to leave and launch one's own company is irresistible.

And so are the leisure opportunities that arise from working at a slower pace compared with Seattle or Silicon Valley. Says Benedict, 42: "I fly-fish at lunch."  To top of page

To write a note to the editor about this article, click here.

Find Business Answers
or
Ask a Question



  • pile_money.ju.04.jpg
    Small business grants are rare, but they do exist. Here's how to find them. More
  • ann_marie.04.jpg
    These 7 entrepreneurs are bringing tech, medical research and design jobs to the Detroit metro area. More
  • credit_cards.04.jpg
    As traditional loans dry up, banks are funneling more of their small business lending through credit cards. More
  • frattini_dfd_26.04.jpg
    Arson. Scrappers. Blackouts. It's part of business for the last tenant in Detroit's Packard Plant. More
  • scott_pinizzotto.04.jpg
    Inventing is the easy part. Marketing? Trickier. Experts tell how they'd advertise 5 hard-to-tout products. More
  • dead_zone.04.jpg
    Every restaurateur knows about Cursed Locations, the addresses where no venture survives. More
  • charles_ellis.04.jpg
    Detroit's churches are plowing millions into redeveloping local housing and businesses. More



QWe've run a dinner theater for three decades. We've been operating at a loss for the last couple of years, and are unable to get a loan. We even closed for two months this summer to save money. We don't know what to do. More
Get Answer
- Kyle, Sarasota, Fla.
Sponsors
Living on a cash-only diet Credit card reform kicks in Feb. 22, but it won't matter to these 5 readers. They cut up their cards and are going debt free. They share how they did it. More
Hindsight First came the recession. Now come the books about the roots of the recession. More
Lean muscle cars These days, little engines produce the same power you once needed a big V8 for. Meet 5 new models bringing back the muscle car. More

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.