A roadmap for small business owners to address gaps in financial access, workforce development, market competition and technological innovation is part of a new University of Hawaiʻi Economic Research Organization (UHERO) report. Funded by the City & County of Honolulu Office of Economic Revitalization, the report highlights the challenges faced by small business owners and opportunities for targeted support.
Key findings
Top small business needs
- Support for marketing and sales (49%), financial resources (44&) and human resources (35%).
- Minority-owned businesses reported a significantly higher need for financial resources and networking opportunities.
Challenges in workforce development
- More than 38% of businesses reported difficulty in acquiring 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 needing urgent attention.
Access to financing
- While 53% reported good or excellent access to financing, 29.90% faced barriers, including high interest rates (42%) and complex procedures (29%). Minority and younger business owners were disproportionately impacted.
Networking and collaboration
- More than half of respondents (52%) emphasized the importance of networking, but geographical and time constraints hindered many.
Recommendations
The report's recommendations include:
- Enhanced financial assistance for minority and young business owners.
- Centralized networking opportunities through local mixers and industry-specific events.
- Improved access to digital marketing and e-commerce training.
- Workforce development initiatives, including technical skills training and leadership programs.
- Implementation of best practices from other cities, such as business incubators and innovation hubs.
"Small businesses are the backbone of Honolulu's economy, but they face significant hurdles in accessing critical resources," said Ruben Juarez, UHERO–HMSA Distinguished Professor and lead author of the report. "Our findings offer clear, actionable recommendations to foster growth and resilience in this vital sector."
A combination of a large-scale survey with 1,024 respondents and in-depth interview discussions with 11 small businesses provided a comprehensive view of the small business ecosystem.
Visit UHERO's website for the entire report .
UHERO is housed in UH Mānoa's College of Social Sciences .
The post Small business struggles highlighted in new UHERO report first appeared on University of Hawaiʻi System News
