A survey of 100 small business owners operating in Kaua‘i revealed that 36 percent do not feel their businesses were sufficiently profitable in 2004 to provide them and their families with a middle-class standard of living. “I think that’s pretty
A survey of 100 small business owners operating in Kaua‘i revealed that 36 percent do not feel their businesses were sufficiently profitable in 2004 to provide them and their families with a middle-class standard of living.
“I think that’s pretty shocking,” said Darryl Mleynek, state director of the Hawaii Small Business Development Center (SBDC), whose organization conducted the SBDC Network State of Small Business Survey Hawaii 2005. The organization has a business support office on the campus of Kaua‘i Community College.
Conversely, 59 percent of Kaua‘i’s small business surveyed answered yes to the question.
Thirty-six percent reported less than $250,000 in gross sales, while 15 percent had gross sales (or revenues) between $250,000 and $500,000.
Thirty-two percent of those surveyed refused to reveal their gross sales for 2004.
Mleynek said the concept of what constituted a middle-class life and income was left to the perceptions and expectations of the business owners.
When asked the question “excluding all other income you may personally receive, was your business in 2004 sufficiently profitable to provide you and your family with a middle-class or better income through a combination of salary and profit,” 32.3 percent of Hawai‘i small business owners said no.
“It’s ironic these small businesses drive the economy, but fail to fully support their owners,” Mleynek said.
But there is also great optimism among small businesses for 2005. Fifty-five percent said they expected increased sales this year; 13 percent said sales would increase greatly.
Fifty percent said they thought the state’s economy would improve, while 41 percent said the county’s economy would improve.
Forty-nine percent said they would hire additional employees.
According to the SBDC, 96.7 percent of Hawai‘i’s business are considered small businesses. There are approximately 51,000 small businesses in Hawai‘i.
He said there was no hard and fast criteria for or definition of what constituted a small business.
Mleynek said many small business owners are excellent at what they do, but that they may not be as savvy entrepreneurs as they could be.
Mleynek said small business owners needed information and training about how to better gain access to capital, market share and product improvement.
Sixty-seven percent of those surveyed in Kaua‘i said yes when asked if they would utilize free training from qualified business consultants while 37 percent answered no.
A resounding 94 percent of the 100 business surveyed said they would not be interested in receiving free consulting or low cost entrepreneurship training.
Small business statewide have been impacted by competition from mainland firms.
“They are no longer as protected as they once were,” Mleynek observed.
The survey concluded that 2004 small business revenues were up, given the relative strength of Hawaii’s economy. Statewide, 45.9 percent of the respondents indicated that their sales had increased while 13.6 percent said their sales had decreased.
