This report summarizes the first phase of the ECTC. Phase I included the assessment of the community’s apparent small business resources and potential. This information was gathered through a survey and a focus group session. The Nakusp Area Development Board (NADB), the community partner organization, was asked to select and invite the community participants. These participants were to be 50% business people, 25% local leaders and 25% citizens, representing a diversity of interests, ages and perspectives in the community. On March 6th , 2002, 27 citizens of Nakusp participated in Phase I of the Entrepreneurial Capacity Test for Communities (ECTC).