Business

New report offers insights into struggles of small businesses on Oʻahu

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The University of Hawaiʻi Economic Research Organization released a comprehensive report Feb. 3 offering critical insights into the challenges faced by small business owners on Oʻahu.

“Investigating and Tackling Barriers and Needs for Small Business Success in Honolulu” also provides a roadmap to address those hurdles — which include gaps in financial access, workforce development, market competition and technological innovation — and highlights opportunities for targeted support.

City and County of Honolulu Mayor Rick Blandiardi said nearly 30% of Oʻahu’s small businesses face financial barriers and nearly 40% struggle to find qualified employees; however, he added that the report, which was funded by the Honolulu Office of Economic Revitalization, shows their resilience.

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“Small businesses are the backbone of Honolulu’s economy, but they face significant hurdles in accessing critical resources,” said Ruben Juarez, a distinguished professor with the University of Hawaiʻi Economic Research Organization-Hawaiʻi Medical Service Association partnership and lead author of the new report.

Here is a look at the report’s key findings.

Top small business needs

  • Support for marketing and sales (49%), financial resources (44%) and human resources (35%) are the most critical areas for assistance.
  • Minority-owned businesses reported a significantly higher need for financial resources and networking opportunities.
  • More access to financing.
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Challenges in workforce development

  • More than 38% of businesses reported difficulty in finding employees, citing a lack of qualified candidates (62%) and budget constraints (39%).
  • Retention issues, including insufficient benefits and limited career development opportunities, were also highlighted.

Barriers to market access

  • Nearly 29% of respondents cited challenges accessing new customers, with digital marketing and online presence identified as areas needing urgent attention.

Networking and collaboration

  • More than half of respondents (52%) emphasized the importance of networking, but geographical and time constraints hindered many from building connections.
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The new report also outlined several key recommendations to support small business:

  • Enhance financial assistance for minority and young business owners.
  • Centralize networking opportunities through local mixers and industry-specific events.
  • Improve access to digital marketing and e-commerce training.
  • Provide workforce development initiatives, including technical skills training and leadership programs.
  • Implement best practices from other cities, such as business incubators and innovation hubs.

“Our findings offer clear, actionable recommendations to foster growth and resilience in this vital sector,” said Juarez.

Olin Lagon, chairperson of the Economic Revitalization Commission, underscored the significance of the findings.

“This report aligns with similar findings from [the Honolulu Office of Economic Revitalization] Oʻahu Business Connector platform and outreach to small businesses,” said Lagon. “This report gives us confidence to build upon our foundation of collaborative efforts between government, the private sector and community to invest in small businesses and, by extension, our local economy.”

You can read the entire report here.

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