Five Unique Advantages to Doing Business in Montana

By Christina Henderson

In 2017, the Kauffman Foundation funded a research study on Montana’s entrepreneurship ecosystems led by Yas Motoyama, Ph.D., of the University of Kansas. (You can find a summary here and the full report here.)

The report confirmed that Missoula and Bozeman, Montana, enjoy some of the highest levels of entrepreneurship in the nation in terms of startup and high-growth companies.

The study also uncovered a Montana ecosystem that offered different and unique assets for growing businesses compared to traditional tech centers like Silicon Valley, Seattle, or Denver.

Here are five benefits to doing business in Montana, according to the research:

1. Dense Networks

The high level of entrepreneurship activity in Montana is founded on dense networks of active local support organizations that are well-perceived and utilized. These networks include non-profit business resources like universities, industry alliances, government organizations, business incubators, and volunteer-led groups. The study also noted many active role-model entrepreneurs who have successfully run companies and now mentor the next generation of entrepreneurs, such as Tom Stergios of Advanced Technology Group, Andrew Hull of Elixiter, Greg Gianforte of RightNow Technologies, and Jeff Trom of Workiva.

Connections in Montana’s ecosystem are built out of open relationships with small degrees of separation. Will Price, founder and general partner of Next Frontier Capital, observed that in Montana, “It’s very easy to approach people. They’re not protected or hidden behind assistants and security guards.”

Strong network connections are made in spite of Montana’s vast geography. Business leaders seek out resources, participate in events, and meet mentors and proteges beyond their hometowns, often 200-300 miles away.

2. Support of Government

In sharp contrast to cases in other larger cities where government and regulations were often mentioned as being a barrier to entrepreneurship, Montana entrepreneurs reported support from leaders like Gov. Steve Bullock, Sen. Jon Tester, and Sen. Steve Daines and considered them “champions of entrepreneurship.” This was true of Montana’s leaders regardless of political party.

Elected officials, both at the local and statewide level, knew founders on a first-name basis and were accessible by text message or phone. State leaders paid on-site visits to companies, even those located in remote small towns. Multiple companies mentioned active support from Montana’s congressional delegation in making introductions to customers, breaking through problems with government contracts, or helping with matters related to federal policy.

Paige Williams, founder and CEO of Audience Awards in Missoula, said, “The good thing about Montana being a small town is I know the governor. I know Sen. Tester. Because it’s a small town, you get major access to your leaders. And they really help support you in any way that they can and also talk about you a lot.”

From the Executive Director:

Inaugural Women’s Summit Explores Inclusive Innovation

• Dr. Jayne Morrow of Chinook, Environmental Engineer with the National Institutes of Standards and Technology, who previously held a top leadership role in the Office of Science and Technology Policy for the White House,
• Diane Smith of Whitefish, a former telecommunications executive and co-founder and CEO of AvailTVN/Vubiquity, where she raised $30M in funding before a successful acquisition,
• Renee Reijo Pera of Bozeman, Vice President for Research and Economic Development at Montana State University, a former Stanford Professor and expert in in vitro fertilization,
• Holly Truitt of Missoula, founding director of spectrUM Discovery Center and leader of community innovation through the new Broader Impacts Group at the University of Montana,
• Mary Rutherford of Helena, President and CEO of the Montana Community Foundation, who previously served the President of the University of Alaska Foundation.

Member News:

TechEx educates attendees on GDPR implementation

On May 24, the Montana World Trade Center hosted the 2018 Technology Export Initiative (TechEx) event, which focused on the European Union’s (EU) General Data Protection Regulation (GDPR). TechEx aims to connect Montana businesses in industries such as cloud computing, photonics, and bioscience with insights from international trade and technical law experts.

Presenters Jop Fellinger of Fruytier Lawyers in Business, Bruce Tribbensee, co-founder of Submittable, and Joel Henry, partner at Worden Thane, gave attending companies a crash-course in what GDPR may mean for their business. The new rules have far-reaching implications and serious consequences for non-compliance.

[Listen to the entire TechEx presentation on the Alliance website.]

Fellinger Skyped into the meeting from the Netherlands to share his insights on the eve of the regulation’s enforcement. He said that while GDPR presents a huge challenge for implementation, it presents opportunities for companies to more meaningfully engage with their customers over longer periods of time.

GDPR applies to any company processing personal data of EU citizens, regardless of whether that company is in the EU or not. Under the new regulations, individuals will now have more control over their data. Among other things, they will have the right to erasure, or the right to be forgotten. In other words, under certain circumstances, companies must be able to remove someone’s personal data from their systems within four weeks of a request to do so.

Among other responsibilities, companies under GDPR will be required to have an easy-to-read privacy statement with clear references to consent. They need to be clear about why data is needed, how it is being used, and only process data necessary for that purpose. Companies must ensure the data is accurate and take measures against unlawful or unauthorized use of that data.

Penalties for non-compliance could include fines up to 4% of annual global turnover or €20 million ($25.5 million), whichever is greater. There is a tiered approach for fines, so companies can be penalized at different rates for infractions.

Click the link below to hear Fellinger’s presentation and Submittable Co-founder Bruce Tribbensee’s experience with preparing for GDPR, and Worden Thane Partner Joel Henry’s legal advice for making the transition.

View the slide shows from TechEx on Montana World Trade Center's website.

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