Hawaii’s small businesses are vital to the state’s economy, contributing significantly to employment and economic growth. In 2022, small businesses accounted for 49.6% of Hawaii’s employment, surpassing the national average. (advocacy.sba.gov)
State-Specific Statistics and Demographics
- Total Small Businesses: Hawaii is home to approximately 141,460 small businesses, representing 99.3% of all businesses in the state. (chamberofcommerce.org)
- Employment: These businesses employ around 272,459 residents, equating to 49.3% of the state’s workforce. (chamberofcommerce.org)
- Minority-Owned Businesses: Minority-owned small businesses constitute 52.01% of the total, highlighting Hawaii’s diverse entrepreneurial landscape. (chamberofcommerce.org)
- Department of Business, Economic Development & Tourism (DBEDT): DBEDT provides technical assistance, financing opportunities, and economic information to support businesses. Their Business Development & Support Division (BDSD) offers programs such as the Community-Based Economic Development (CBED) Loan Program, Enterprise Zones (EZ), and the Hawaiʻi State Trade Expansion Program (HiSTEP). (invest.hawaii.gov)
- Hawaii Small Business Development Center (SBDC): Offers professional consulting, research, and training services to business owners and emerging entrepreneurs. (smallbizhawaii.com)
- SCORE Hawaii: Provides expert counseling, education, and mentoring to Hawaii’s diverse business community. (smallbizhawaii.com)
- Hawaii Technology Development Corporation (HTDC): Established in 1983, HTDC fosters the development of Hawaii’s technology industry and administers programs like the Small Business Innovation Research (SBIR) Matching Grant Program. (en.wikipedia.org)
- O’ahu Business Connector (OBC): Connects small businesses and entrepreneurs to nonprofits, government partners, and support organizations to help them grow and create jobs. (cca.hawaii.gov)
- Small Business Regulatory Review Board (SBRRB): Supports the interests of Hawaii’s small business owners by ensuring that new and existing regulations are fair and do not unduly burden these vital contributors to the local economy. In 2023, the board reviewed and supported 45 rules, bringing the total to 1,053 rules reviewed since its inception. (files.hawaii.gov)
- Enterprise Zones (EZ) Program: A collaborative state-county initiative designed to encourage specific types of business activity, job preservation, and job creation in areas where these efforts are most needed through tax and other incentives. (invest.hawaii.gov)
- Tourism: As a major industry, tourism provides a substantial market for small businesses, especially in sectors like accommodation, food services, and retail.
- Import-Export: The state’s isolation necessitates a reliance on imports for many goods, while also offering opportunities for export, particularly in agriculture and unique local products.
- Employment Share: In 2022, small businesses in Hawaii accounted for 49.6% of employment, exceeding the national average. (advocacy.sba.gov)
- Minority-Owned Businesses: Minority-owned small businesses make up 52.01% of Hawaii’s small businesses, compared to 18.7% nationally. (chamberofcommerce.org)
Local Resources and Support Programs
Hawaii offers a range of resources to support small businesses:
State Laws, Regulations, and Policies
Geographic and Regional Context
Hawaii’s unique geographic location in the Pacific Ocean offers both challenges and opportunities for small businesses:
Comparisons with National Averages
Conclusion
Hawaii’s small business ecosystem is robust and diverse, supported by a range of state-specific programs and resources. Understanding the local demographics, available support systems, and regulatory environment is crucial for entrepreneurs aiming to establish or grow their businesses in the Aloha State.