Business confidence in Hawaii's economy is improving, according to the results of a survey among the 4,000 Hawaii members of the National Federation of Independent Business. Business optimism on
the upswing, survey showsStar-Bulletin staff
Just over half the respondents said they are more optimistic than they were a year ago about Hawaii's business climate and the economic future of their own businesses. Bette Tatum, director of the Hawaii chapter of federation, credits the election of Republican Gov. Linda Lingle.
"We finally have kindred spirits, receptive ears and helping hands in the governor's office," Tatum said. She acknowledged, however, that the current session of the state Legislature has yet to pass any legislation backed by organizations representing small business, such as hers.
Tatum said that more than half of the respondents to a similar survey two years ago said that if they had to make the choice over again they would not set up shop in Hawaii. In the January 2001 survey, 61 percent of those surveyed rated Hawaii's economy "poor" and 53 percent said that knowing what they know now they wouldn't start a business in Hawaii.
That specific question was not asked this time, but in the latest survey 50.6 percent said they feel more optimistic than a year ago while 26.4 percent said they don't feel more optimistic.
Costs for health and workers' compensation insurance continued to be top concerns among business owners. Health insurance was rated top by 26.4 percent and workers' compensation insurance rates were the top concern for 23 percent of businesses.
Taxes ranked next, with 16.1 percent considering taxes the No. 1 problem.
The level of corporate income tax in Hawaii caused a lot of gripes, with 69 percent of respondents saying they would like to see cuts in both taxes and government spending.
One issue that has gained some publicity in recent years, government-forced conversion of leases to fee-simple ownership of properties, seemed relatively unimportant to the business operators. In fact, 39.1 percent of the respondents said leases are contracts and should be honored by both parties while 5.7 percent said the law should allow lessees to buy their properties at a fair market value.
Nearly a quarter said lessees should be allowed to renegotiate above-market rents, and 20.7 percent were undecided. About 10 percent did not respond.
Medical care costs rated high with 47.1 percent saying businesses with 10 or fewer employees should be exempt from having to pay prepaid medical expenses for their full-time workers.
National Federation of Independent Business