Hawaii below average in entrepreneurial startups
Hawaii ranks below the national average when it comes to entrepreneurship, according to a state-by-state comparison by the Ewing Marion Kauffman Foundation.
ENTERPRISE BY STATE
States ranked by percentage of population per month starting businesses during 2007
1. Idaho |
0.46% |
2. Dist. of Columbia |
0.46% |
3. Arizona |
0.46% |
4. Tennessee |
0.44% |
5. Louisiana |
0.44% |
U.S. |
0.30% |
44. Hawaii |
0.21% |
47. Ohio |
0.19% |
48. Pennsylvania |
0.15% |
49. Delaware |
0.14% |
50. Alabama |
0.10% |
51. West Virginia |
0.08% |
Source: Ewing Marion Kauffman Foundation
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Last year, some 0.21 percent of adults (ages 20 to 64) per month in Hawaii started a business that occupied 15 or more hours per week, compared to the national average of 0.30 percent, according to the Kauffman study.
Nationally, entrepreneurial activity dropped sharply among women in 2007, while it surged among men and immigrants, the Kauffman Foundation found.
Hawaii, despite its low ranking, was, however, among the state with the largest increase in entrepreneurial activity over the past decade.
Jane Sawyer, lead business development specialist for the U.S. Small Business Administration in Hawaii, says she has seen interest picking up in Hawaii compared to 15 years ago.
A particular trend is a growth in home-based businesses, she said, now that technology has made that possible.
One of the hurdles for startup businesses that remains however, is the high cost of doing business in Hawaii.
"It's going to be more expensive to lease a space, pay for insurance and employees here," said Sawyer. "All these come with a higher price tag."
Also, in Hawaii, many adults are part of a longtime tradition of being employees for large employers, whether it be for the state or federal government.
"So sometimes we may not be as likely to jump through that hoop, or take that plunge," she said.