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Home Page | About SBH | Small Business News
Business in the State of Hawaii When Small Business Hawaii was founded in the mid 1970s, Hawaii was not known as a small business state. The "Big Five," major corporations that traced their roots to the Missionary families of the early 1800s, remained the dominant economic, political and social force in the Islands. Times and the economy changed in Hawaii during the last two decades. Big companies merged, moved or downsized. Tourism dominates while agriculture - sugar and pineapple - declined markedly. Hopes for economic diversification and "high tech" industry lapsed because of problems associated with high taxes, costs of doing business and government regulations. "Big Box Retailers" entered Hawaii at record rates. One-party political promises of business diversification, higher-paying jobs, regional headquarters and "high-tech" enterprises failed to materialize. Small business became the engine that drives Hawaii's economy. Of the estimated 26,000 businesses in Hawaii, more than 98% (25,000) are considered "small business." What is a "small" business? It is a subjective definition of generally accepted size standards defined by the U.S. Small Business Administration (SBA). The SBA calls a business on the Mainland, with 500 or fewer employees, "small;" in Hawaii, it is 100 or fewer employees. Classifying a business in terms of employment size or assets alone is misleading. Many businesses with few employees are BIG businesses in today's changing world; conversely, we are witnessing the downsizing of former industry giants (e.g., AT&T, GM, IBM, K-Mart, etc.) Small Business Hawaii looks at business in terms of its leadership and ownership, regardless of size. If a business is independent not dependent; if the founder or owner is directly involved with the hands-on operation and management of the business, these are characteristics unique to small, entrepreneurial firms. Small business is opportunity and the future. Small business in Hawaii creates 2 of every 3 new jobs and provides more than half the private payroll. But increasing taxes, mandated benefits, regulations and other costs, forced many businesses to exit Hawaii. Effective advocacy is a must to realize economic opportunity in the future.
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