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Start a Business in Kenai, AK: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Kenai, AK, is a plus for any entrepreneur. In general, setting up any form of business in Alaska, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Kenai, AK. With an urban population of 7799 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Alaska. Like most places in the US, Kenai, AK also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Kenai, AK has a proper business environment for all.
In this article, you will read about how to start a business in Kenai and why you should choose Kenai to start and run your business. We recommend you check below the important facts about Kenai, AK; these might help you.
On this page, you’ll learn about the following:
Kenai, AK Household Income Statistics
| Kenai Median household income | 66612 USD |
| Kenai households with dual income earners | 48.7 % |
| Kenai households $150K+ Income | 14.1 % |
| Kenai households $100K+ Income | 29.2 % |
| Kenai households $100-150K Income | 15.1 % |
| Kenai households $75-100K+ Income | 14 % |
| Kenai households $50-75K+ Income | 22.2 % |
| Kenai households $35-50K+ Income | 9.9 % |
| Kenai households $25-35K+ Income | 7.3 % |
Kenai, AK Education & Labor force Facts
| Kenai residents with a bachelor’s degree (or equivalent) | 10.2 % |
| Kenai residents with at least a 4-year degree | 19.3 % |
| Kenai residents with a graduate degree | 9.1 % |
| Kenai residents with a high school diploma but no more | 32.3 % |
| Kenai residents with less than high school education | 10.9 % |
| Kenai residents with some college but no more | 37.6 % |
| Kenai residents with a Bachelor’s degree or higher (STEM fields) | 46.1 % |
| Kenai households that own (rather than rent) their residence | 63.2 % |
| Kenai residents 16 and older in the labor force | 59.7 % |
| Kenai residents unemployed | 8.2 % |
Kenai, AK Demographics
| Kenai residents aged 0-9 | 15.5 % |
| Kenai residents aged 10-19 | 10.6 % |
| Kenai residents aged 20-29 | 14.6 % |
| Kenai residents aged 30-39 | 16.5 % |
| Kenai residents aged 40-49 | 9.8 % |
| Kenai residents aged 50-59 | 13.8 % |
| Kenai residents aged 60-69 | 8.7 % |
| Kenai residents aged 70-79 | 7 % |
| Kenai residents aged over 80 | 3.5 % |
| The average size of resident families in Kenai, AK | 3.49 |
| Estimated population per square kilometer in Kenai, AK | 103 |
| Kenai, AK urban population (estimate) | 7799 |
| Kenai, AK municipal population (estimate) | 7799 |
Now that you know what makes Kenai of Alaska good for business, let’s get started with the exact steps on how to start a business in Kenai.
How to Start a Business in Kenai, AK
Starting a business in Kenai, AK, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Alaska, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Kenai.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Kenai. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Alaska LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Alaska to do the Alaska LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Alaska, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Kenai, AK by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Alaska LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Kenai can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Alaska
- Must have a physical street address in the Alaska
- Must have legal rights to conduct business in the Alaska
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Alaska. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Alaska SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Kenai, AK. Your Alaska LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
- Dissolution
In future, if any member wants to leave the company or you want to dissolve the business, then the Alaska operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Kenai, AK. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Kenai, Alaska, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Kenai Stats for Starting a Business
Before you start a business in Kenai, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Kenai has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
Demography
As we talk about the urban population density, the young population percentage in the city is approximately 14.6 (people in their 20s) and 16.5 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 36.3. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Kenai has approximately 3.5 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Real Estate
Another important factor to mention about Kenai is the home value of owned properties. The average value of owned houses is 228164. Also, the percentage of people living in their own houses is 63.2. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
Health
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Kenai who still do not have health insurance. The rate of people not having health insurance is 10.6. This depicts the lifestyle and overall health demography of Kenai. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Kenai, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
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Reasons to Start a Business in Kenai
Kenai offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Kenai. Here are some of the reasons,
Stable Economic Growth
Kenai or any other city in Alaska has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Alaska shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Kenai, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Kenai is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Alaska LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Alaska or any other state. That means if you are operating any business in Kenai, then Alaska State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Alaska. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Kenai, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 59.7 is the percentage of labour participation. Hence, it is clear that having a business in Kenai will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Kenai, Alaska, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Kenai.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 20.1. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Other Benefits
Kenai (aka ) is ranked at 3 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Kenai. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Kenai is 16.5. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
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Why Start Business In Kenai Alaska
Whether you are planning to open a new business, relocate, or purchase an existing business, you may want to consider a few factors before deciding where to start. These factors include the state you want to incorporate in, the size of your business, the local demographics, and the tax codes that may be applicable to your situation.
There are several reasons to consider starting a business in Kenai, Alaska. For one, the local economy is thriving, and the unemployment rate is lower than the national average. However, the labor pool is not as diverse as that in larger cities. Luckily, there are several resources available to promote locally-grown goods, and a good number of Alaska-based makers can add their wares to Buy Alaska listings.
The Seward Highway, designated a National Scenic By-way, provides paved access to Kenai and Anchorage, and Seward Shuttle Bus Service provides year-round service to Anchorage. The city also boasts one of the highest-rated school systems in the state. In addition, the Kenai Peninsula is a hub for several of Alaska’s most impressive businesses, including Carlile Transportation Systems, a transportation company specializing in oil exploration.
If you are interested in the aforementioned aforementioned, the federal SBA has a number of resources available to help you get started, including business plans, financing, and tax advice. In addition to these resources, you can also learn more about the Alaska Grown campaign, which promotes locally-grown goods.
The City of Homer also has a number of resources available to help new entrepreneurs get off the ground, including the Homer Public Library, which has an extensive small business development library. The Kenai Peninsula Borough Economic Development District also provides helpful resources to residents of the borough, including a microloan program and the Business Innovation Center. The KPBB also hosts an annual Industry Outlook Forum to help businesses understand their market, and offers a small business loan program for qualifying businesses.
In addition, the Homer Chamber of Commerce and the city’s website offer a wealth of information for anyone considering starting or expanding a business in the area. The site also includes a business list that features the borough’s top companies, based on revenue, employees, and number of establishments. These statistics are a good starting point for your research. Despite the fact that there aren’t as many people living in Homer as there are in larger cities, it is still a desirable place to live. A large number of retirees make their home in Homer, and new businesses will also be popping up here in the coming years. The city also has an active business community, with a number of clubs and organizations fostering networking opportunities for entrepreneurs.
There are plenty of resources to help you get started, including the Kenai Peninsula Borough Economic Development District and Buy Alaska. In addition to these resources, you can get an idea of how well your business will fit in with the Kenai area by checking out the statistics and demographics.
FAQ About Kenai, AK
Make sure the relocation will benefit both you and your company before deciding to make it to Kenai, AK. You shouldn’t relocate to this location if the local government imposes more expenses on you as a company owner.
An EIN number may be requested using the IRS’s online application. You’ll need to sign the document and include your company name, address, and contact information. At your postal address, you will get the EIN number. Kenai, AK residents may visit the IRS website to get an EIN number.
In Kenai, AK, an LLC is valid for as long as you keep it active. One has to renew the LLC in Kenai, AK on time to prevent it from being shut down.
House prices might decrease if the real estate industry is affected by shock in Kenai, AK, where real estate is a dynamic industry. On the other hand, the real estate market in Kenai, AK, is growing. So it is difficult to predict whether or not the price of homes will decrease.
The wealthiest companies in Kenai, AK, are the smaller ones, such as consultancies, real estate agents, and small construction companies. These Kenai, AK small enterprises are the most well-liked and successful ones. You may use these suggestions if you’re thinking about starting a small company.
Starting an LLC in Kenai, AK is definitely a better idea than other types of business. However, if you start a sole proprietorship it would be better than having an LLC. The reason is, sole proprietorships are similar to LLC but they have less tax burdens.
To prevent other people from using your company name, you need register your business name with Kenai, AK. With the secretary of state, you may register your company name. You must pay the reservation cost and may only register your company name for a limited period of time.
Kenai, AK’s economy has significantly matured recently. The factor that not only makes Kenai wealthy but also expands over time is the service industry. Anyone looking to launch their own company is welcome in the city.
The process of registering a business in Kenai, AK is not a complicated one. There are a few steps to take care of before you can get started. It takes a day to register your business in Kenai, AK if you’re filing online.
Kenai, AK, is rapidly expanding, as can be shown by looking at the statistics from the last several years. Because of how well Kenai, AK’s industries are doing, particularly the service sectors. The economy is strengthened by the service industries.
Although Kenai is a city with many attractions, it also boasts some of the highest rents in the nation. So, in Kenai, AK, is renting or buying preferable? Whether a person wants to invest for the long run or the short term relies on their investing plan.
In Kenai, AK, forming an LLC is a simple and fast procedure. You just need to submit a document to the Secretary of State and pay the filing fee to complete the process. It’s amazing that the procedure may be finished in only one day.
The city of Kenai, AK, is very well-liked there. It is because the city’s tertiary sector and industry have recently seen rapid growth. Both aspiring company owners and established ones desire to relocate to Kenai because of the city’s commercial potential.
In Kenai, AK, you must get in touch with the local government if you want to license a company. They will tell you of the necessary licensing requirements and fees. Depending on the kind of company you are running, the cost of licensing a business in Kenai, AK, varies.
Honestly, there is no such business that can run itself in Kenai, AK or in any city. In every business you must put your effort to run it. In Kenai, AK, if you start a small business around a small circle or locality, then you might get some free time.
Financing a company in Kenai, AK is undoubtedly quite difficult. Banks, minor financial institutions, and angel investors are all sources of funding, but the level of competition is too great. For this reason, raising money is difficult.
Obtaining an LLC in Kenai, AK is not as costly as many people believe. A Kenai LLC registration costs as low as $250 if you already have a name. Using a DBA or other fictitious name, you may also form an LLC in Kenai.
Whether relocating to Kenai, AK, is a smart decision or not is a little debatable. You may choose based on the kind of company you are doing. If you’re an aspiring entrepreneur looking to launch your own business, Kenai presents amazing chances.
In Kenai, AK, the majority of enterprises are subject to taxation. The kind of business—such as an LLC, LLP, corporation, or partnership—determines the tax rate. Tax benefits for some firms may exist in Kenai, AK. The kind of company will determine how that is answered.
Finding the ideal financing source for your concept should be your first step. Finding angel investors should be your first step if you want to raise money in Kenai, AK. A small company loan should be your first choice if you wish to get cash from a bank.
Starting an LLC in Kenai, AK involves numerous considerations. To start, you must choose the kind of LLC you wish to establish. Single-member and multiple-member LLCs are the two forms of LLCs. After that, you must submit the required documents to the Secretary of State.
With your LLC in Kenai, AK, you have a lot of options. It is a corporate form that significantly reduces your financial outlay (as it has fewer tax burdens). From your LLC in Kenai, AK, you may simply generate some decent money.
You may want to think about working as a freelance writer if you’re searching for a method to generate money in Kenai, AK. You may work from home in Kenai, AK and set your own hours as a freelance writer, which is one of several methods to earn money.
Get a solid business plan if you want to operate a company in Kenai, AK. Once you have it, you may choose a catchy business name, appoint a registered agent, and register your company with the Alaska Secretary of State. After filing, be careful to get the necessary licenses and permissions.
Registered agents in Kenai, AK are appointed to represent the LLC. They are responsible for receiving legal and official documents on behalf of the LLC. Appointing a registered agent is mandatory when you’re forming an LLC in Kenai, AK.
Kenai, AK LLCs provide a variety of advantages. First of all, LLCs are less expensive, less difficult, and do not have double taxes. Therefore, having an LLC in Kenai, AK, will be advantageous for your company.
Make sure the following items are present in Kenai, AK before you sell your goods. Develop a sound sales strategy before learning about your rivals. your clients, third. Pricing the item comes in at number four, while marketing and product promotion come in at number three. For a product to be sold in Kenai, AK, all of these are crucial.
Compared to Houston, Alaska, Kenai is a less expensive place to live. Living in Kenai is more economical because of the city’s reduced cost of living. In terms of a commercial standpoint, though, some people could find Houston more cheap. According to the person, it is quite relative.
Kenai, AK is a great place to start a small business if you have the right idea. It’s a bustling city with a lot of opportunities for small businesses. One of the best ways to start a small business is to find a niche that’s not already saturated.
LLCs in Kenai, AK don’t have to pay income tax on their profits. Each LLC member is required to pay income tax based on their individual income. Sales tax, employment tax, and franchise tax make up the remaining taxes.
Unicorns are found across the globe today. Kenai, AK is of course not an exception here. You will find a handful of unicorns in Kenai, AK. Some of the unicorns are very popular in Kenai.
In Kenai, AK, you don’t always have to get a license if you’re self-employed. You need to check with the Kenai authority for home-based businesses and self-employment rules. It depends on the nature of the business.
An LLC is not entirely free in Kenai, AK. Everyone must pay the State a certain minimum filing fee. Tax deductions on state filing fees are available in several states. Consequently, a free LLC is available.
In Kenai, AK, starting an online company is not only popular but also inexpensive. Online teaching, selling, or legal consulting may be the cheapest businesses to start in Kenai, AK. Additionally, you may open a home-based bakery.
A registered agent may be anybody in Kenai, AK who is at least 18 years old and a resident. You may serve as your own registered agent if you satisfy Alaska’s requirements for becoming a RA.
How Fast Can You Start Business in Kenai, AK
The good news is that Kenai is filled with hardworking individuals who understand the value of efficiency and innovation. The business community in Kenai is known for its quick responses and proactive approach to helping new businesses get off the ground. With a strong network of support resources available, entrepreneurs can find the guidance and assistance they need to start their businesses in record time.
One of the ways Kenai facilitates a fast business startup process is by streamlining the permit and licensing process. The city has worked diligently to make the necessary paperwork and approvals as straightforward as possible, cutting down on unnecessary red tape. This allows entrepreneurs to get their businesses up and running with minimal delays, which is crucial in today’s fast-paced business environment.
In addition to a simplified permitting process, Kenai also offers a variety of resources and support services to help entrepreneurs navigate the challenges of starting a new business. From mentorship programs to financing assistance, there are numerous options available to help entrepreneurs turn their business dreams into reality.
Furthermore, the local government in Kenai is known for its proactive approach to economic development. They work tirelessly to attract new businesses and support existing ones, creating a thriving business environment that is conducive to growth and success. By investing in infrastructure and programs to support entrepreneurship, Kenai has positioned itself as a hub for business innovation and growth.
Another factor contributing to the speed of starting a business in Kenai is the strong sense of community in the area. Entrepreneurs find support not just from government entities and business organizations, but also from their fellow business owners and residents. This sense of camaraderie and collaboration fosters a supportive environment that encourages entrepreneurship and helps new businesses get off the ground faster.
In conclusion, the speed at which you can start a business in Kenai is a testament to the city’s commitment to fostering a vibrant and dynamic business community. With a streamlined permitting process, a wide range of resources and support services, and a strong sense of community, entrepreneurs in Kenai have everything they need to hit the ground running. Whether you’re a seasoned entrepreneur or venturing into business ownership for the first time, Kenai is the ideal place to start and grow your business.
In Conclusion
Starting a business in Kenai is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Alaska has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Kenai, AK.