entrepreneurship

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Nonprofit Bozeman Fiber Secures Funding From Eight Local Banks

Good news from Montana! Bozeman Fiber has secured funding to begin construction of a 23-mile open access community fiber network. Through an impressive partnership among eight local banks, Bozeman Fiber secured $3.85 million.  

First Interstate Bank, Rocky Mountain Bank, Big Sky Western Bank, Opportunity Bank, U.S. Bank, American Bank, First Montana Bank and Bank of Bozeman all came together to support the fledgling network. During a press conference, First Interstate Bank President Bruce Parker described how this level of collaboration was possible. He initially approached twelve banks in April about the project. Now, six months later, eight banks have committed to providing funds. Parker expressed a high level of confidence for the network’s impact:

The project really speaks for itself in terms of what this infrastructure will do for the Bozeman community. 

Bozeman Fiber is itself a remarkable collaboration between public and private sector interests. The city of Bozeman will not manage the network themselves. Instead, the City Commission voted to form a separate nonprofit entity to direct the project. In order to consider the many diverse needs of Bozeman from the economic to the educational, the board of this newly formed nonprofit features seven members from the public and private sector. The end result is this unique public-private partnership. 

A purpose for the fiber network is economic development, in part by providing affordable fiber access to small businesses and startups. The press conference took place at the headquarters of Elixiter, an online marketing company that has grown rapidly in the past four years. The founder, Andrew Hall explained how Bozeman Fiber will benefit companies like Elixiter:

Wilson Business Thrives With Muni Fiber Network - Community Broadband Bits Podcast 171

When Wilson decided to build its municipal fiber network in North Carolina, it found a strong opponent in Tina Mooring, store manager of Computer Central. One of the local business' sources of revenue was connecting people to the Internet and they were fearful that they would lose customers to what became Greenlight, the municipal fiber network that delivered the first 100 Mbps citywide service in the state and later the first citywide gig as well. 

As we noted in a post in August, Computer Central became a strong supporter of Greenlight and now believes that Computer Central would be best served by allowing Wilson's municipal fiber to expand to nearby communities. In this week's Community Broadband Bits, Tina Mooring gives us the background and reasoning for this interesting change of heart. This is a short interview, but we hope to see more of these collaborations and partnerships in other communities, where local businesses can use municipal fiber networks to sell business-to-business services. 

This show is 10 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

Chattanooga Best Place For Startups and Outdoor Play

Chattanooga was hot in August - and we don't mean just weather-wise. EPB Fiber Optics achieved a major milestone, raising subscribership to over 75,000. The Gig City also outpaced the rest of the state in new startup activity and received recognition from Outside Magazine as the 2015 Best Place to Live in America.

The Times Free Press covered the Chattanooga startup scene in a recent article, describing how the city is leading the state in economic investment for new business ideas. When compared to the same period in 2014, Hamilton County's initial business filings rose 12.6 percent in the April - June 2015 period. Statewide that figure for the same timeframe was 9.9 percent.

The Times Free Press article focused on Platt Boyd, an architect and entrepreneur who came to Chattanooga with his 3-D printing business. He moved his business there after competing in the 2014 GigTank. His 3-D printer large enough to create walls may one day change the way buildings are constructed.

"If you are searching for a place to open up a business and looking for a community to grow in, I think the very positive experience of our startups here and the rather unique network of support that Chattanooga offers (are) a really big advantage and draw for a lot of enterpreneurs," said Mike Bradshaw, executive director of The Company Lab, a nonprofit group that works to help startup ventures get off the ground. "Branch Technology, and many other similar companies, have found they can succeed in Chattanooga."

Apparently when measuring quality of life, some people consider factors outside of Internet connectivity: Outside Magazine applauds the Chattanooga sandstone climbing cliffs, its 120-mile mountain bike trail, and the Tennessee and Oconee Rivers where kayakers can find thrilling rapids. But outdoor adventure is not all Outside considered when handing out the award; the presence of the fiber network and its value to young entrepreneurs favored Chattanooga:

Hamilton Partners With Local Provider to Serve Businesses in Ohio

Hamilton, Ohio, has entered into a partnership with local firm, CenterGrid, to use city-owned fiber to boost economic development. The firm will offer Internet access and data transport to local businesses via existing infrastructure as the two enter into a five-year pilot project agreement, reports the Journal-News.

The city's business incubator, the Hamilton Mill, is the initial pilot site where emerging businesses are already receiving high-speed connectivity:

“As the initial pilot site, CenterGrid’s service has resulted in the Mill receiving network connectivity that is better than 83 percent of Internet connections throughout the US — that is huge,” Chris Lawson, executive director of the Hamilton Mill said. “For the types of companies that we are attracting, this level of connectivity is imperative for them to be successful.”

A press release from CenterGrid describes rates as economical, competitive, and determined by individual business requirements. According to the press release, entrepreneurs at The Mill are already taking advantage of the service:

"We've wanted a better high-speed internet option for quite some time. Now having something locally provided by the City of Hamilton and CenterGrid makes the idea that much more appealing. This high-speed circuit will allow us to transform our IT infrastructure and deliver value to our business," said Jon Corrado, IT Director at Tedia.

In 2014, the community of Hamilton connected local schools to city fiber allowing them to obtain Internet access from the Southwest Ohio Computer Association Council of Governments (SWOCA-COG). That opportunity decreased school connectivity costs while increasing bandwidth.

Chattanooga Public Library Now Hosts GigLab

Entrepreneurs in Chattanooga now have a new space where they can try to answer the question, "What does one do with a gig?" The Chattanooga Public Library officially opened its GigLab in November. 

The public space offers gigabit access in a lab environment so developers can take their ideas to the next level. The lab is supported by the Mozilla fund and the National Science Foundation. A recent Chattanooga.com article reports that:

The general public will now have access to enterprise level gigabit connected hardware, as well as a variety of short session and hands on courses regarding networking as a whole, and other gigabit focused projects.

Sean Brewer, one of the GigLab founders, writes on the blog:

The hope for The GigLab is to be a place where people can experiment, build prototypes, or just learn how to use hardware that they wouldn’t have access to. I am helping start a group that will be working through “Parallel and Concurrent Programming in Haskell”. The book has an entire section devoted to GPU computing, and I am excited that we will have access to this hardware at The GigLab to explore. Education removes the magic of the mysterious. I feel The GigLab can do that for high-performance computation.

Indianola Municipal Utilities to Offer Gig Service

Indianola Municipal Utilities (IMU) announced in a December 1st press release that they will be offering gigabit service in 2015. IMU will also be expanding their FTTH network to an additional 150 premises this winter in the central part of Indianola.

IMU's service partner, MCG, has established the Build My Neighborhood site, which allows Indianolans to inform IMU where they want to see service expanded to next.

IMU and several local partners, including MCG, recently began the IMU Partners Program. According to the press release, the program provides marketing opportunities, common use of network facilities, outreach to the community, and assistance with business development. Member businesses receive advertising on the IMU TV channel and streaming video site, access to outreach STEM events at local schools, and hosting for tech-related events. 

Indianola Municipal Utilities use the network as a long term economic development tool, regularly cooperating with local partners to support entrepreneurs. In 2013, we shared the story of the Indianola + Simpson College Entrepreneurial Development Initiative (EMERGE). The college program relies on IMU for high capacity connectivity to support new high tech ventures. Simpson College and IMU have also developed an incubator to encourage high tech business growth through mentorship.

From the press release:

“Recent reports show that gigabit availability has become an important factor in economic growth, job creation, and property values” states IMU General Manager Todd Kielkopf. “Indianola’s technology investment in connectivity, collaborations, and content delivery is paying dividends”

The full press release is available below.

Chattanooga Profiled in Al Jazeera America

“There are companies that do what we do, but we can do it in hours, and they can take weeks,” said Posey. “Anywhere else, it would take a lot more time and a lot more money ... Chattanooga is essential to our business model.”

Al Jazeera America's Peter Moskowitz recently spoke with Clay Posey, one of the entrepreneurs flocking to Chattanooga for the network. Posey works in one of the startup incubators there, Co.Lab, developing his idea for pre-operative models that allow surgeons to prepare before operating on patients.

While Chattanooga may not be the norm and may not be an easy venture for every municipality, it lifts the bar. From the article:

“Whenever a corporation like Comcast wants to do something like raise prices, we can point at Chattanooga and say, ‘Why can’t we have something like that?’” said Christopher Mitchell, head of the community broadband networks initiative at the nonprofit Institute for Local Self-Reliance. “It establishes a baseline or at least an aspirational standard.”

The article describes lobbying efforts by large corporate providers designed to stop the municipal networks model. Another Chattanooga entrepreneur told Moskowitz:

“Having public or quasi-public Internet service providers is a good solution to consolidation because they most likely won’t be sold,” said Daniel Ryan, a local Web developer who helped run the digital operation of Barack Obama’s 2012 presidential campaign. “Do I think if every city did this, Comcast would go out of business? No. But it means there will always be competition.”

Moskowitz included a brief historical summary of the network, its contribution to the electric utility, and the challenges created by state barriers. He included our Community Broadband Networks map.

Chris Mitchell to Speak at American Independent Business Alliance Conference, May 8 - 11

The American Independent Business Alliance (AMIBA) brings the 2014 Go Local, Grow Local Conference to downtown Minneapolis May 8 - 11. Christopher Mitchell will speak at the conference on Friday, May 9, at 3:45 central. Chris will speak on creating local environments that help entrepreneurs thrive, including community networks. 

AMIBA began in 1997 in Boulder, Colorado. The nonprofit helps communities create and manage "buy independent, buy local" campaigns across the country. Local businesses increasingly rely on Internet commerce and on the ability to engage in business through telecommunications networks. Community networks, accountable to local business and residential customers, are more important that ever before. 

AMIBA's conference will aim to provide strategies to develop well-considered local indepenedent business programs and find momentum to support them. Prepare to get your hands dirty:

Sure, the Go Local, Grow Local conference will provide you with new insights, ideas and inspiration. But what really sets this event apart is practicality. Every session is designed to offer you specific actions that will yield tangible results for your organization, community or business. Presentations are brief and provide practical guidance while setting the stage for dialogue and action. You'll be a participant, not just an attendee.

Stacy Mitchell, Program Director of the Community-Scaled Economies initiative at the Institute for Local Self-Reliance, has worked with AMIBA for years; she is currently a member of the Advisory Board. Stacy has been a keynote speaker at many AMIBA conferences, authored several books on independent business, and delivered the popular TEDx talk, "Why We Can't Shop Our Way to a Better Economy."

We are looking forward to welcoming AMIBA to the Twin Cities! View the full agenda, find information about presenters, and register on the AMIBA website.

Being a Gig City: Incubating Small Businesses

This is the first in a series of posts examining a premier Gigabit Community - Wilson, North Carolina. According to the U.S. Small Business Administration, 85% of all jobs originate from companies with fewer than 30 employees, and 87% of businesses which started through business incubators have succeeded after five years. So Wilson, North Carolina, focused its "Greenlight" gigabit beam on its local business incubator, the Upper Coastal Plan Business Development Center. "Greenlight is driven by three guiding principles," said Will Aycock, the network's General Manager. "Supporting the economic health of the community, improving the delivery of city services, and enhancing the quality of life for the citizens of Wilson." Providing access to symmetrical gigabit speeds has allowed the community's small business incubator to take its services to the next level, to give budding entrepreneurs access to the future today and in a uniquely affordable way. According to Greg Goddard, Executive Director of the Upper Coastal Plain Council of Government, access to gigabit speeds has meant "Taking our incubation to the next level." Historically their business incubator has attracted "low tech" entrepreneurs: consultants, counselors, state associations, childcare and healthcare providers, people who need work space after normal office hours, even Chic Fil-A administrators, for employee training. The incubator provides a full suite of services including a receptionist, copy and fax machines, phones, 24 hour secure entry, kitchen, meeting rooms, training classes, access to experts, parking, and now, symmetrical gigabit speeds, all for an affordable price. "An 8' by 8' cubicle with those full-suite services leases at $275/month," he said. The goal is to stimulate budding internet-age businesses. Free Wi-Fi in Wilson And it has, even for young entrepreneurs elsewhere in the state. For a tech entrepreneur like Dan Holt from Wake Forest, renting space at this Wilson-based incubator lets him be part of the future, and to experience the possible which is impossible at his home in Wake Forest only 30 miles away. Dan is a self-described techie for a local Raleigh defense subcontractor but he likes to be known as founder of the Wake Forest Fiber Optic Initiative.

Indianola's Community Network Spurs Entrepreneurship

When Indianola decided to invest in a municipal fiber network, the decision was part of a larger economic development plan that included a startup incubator in partnership with Simpson College - which we wrote about earlier this year. Located near Des Moines in Iowa, Indianola is one of a few communities that has partnered with a local trusted provider, MCG in this case, that offers services over a publicly owned network.

According to Chris Draper, Director of Indianola + Simpson College Entrepreneurial Development Initiative (EMERGE), his program would not exist if the city did not decide to invest in economic development and municipal broadband as a package deal. Less than a year after launch, EMERGE has nine active startups, some of which are already seeing significant growth and seizing new opportunities. Collective Labor (collectivelabor.com) has created an online platform to facilitate collective bargaining negotiations.

By centralizing the process of calculating proposals and editing contract terms, Collective Labor decreases negotiation time, reduces errors and ultimately makes the negotiation process more efficient. In Iowa alone, Collective Labor believes it can save schools upwards of $35-million a year by streamlining their collective bargaining efforts, freeing up budgets to hire more teachers and improve schools.

Even more promising, the platform can handle all collective bargaining scenarios from teachers to municipal workers, and trade unions to public safety professionals. The demand for Collective Labor’s service is proving solid. Less than a year after launching (in February), Collective Labor has signed up five school districts and has thirteen contractor requests pending. In fact, Collective Labor President, David Gaus, just announced on Twitter that a Colorado firm has agreed to invest cash and expertise that will result in a new office and additional staff to support a nationwide expansion. Not bad for a startup that’s barely seven months old.