Ka Wai Ola - Office of Hawaiian Affairs, Volume 6, Number 8, 1 August 1989 — Opportunity knocks for Hawaiian businesses [ARTICLE]

Opportunity knocks for Hawaiian businesses

by Linda Colburn OHA Eeonomie Officer Thirty years ago, mention of "Hawaiian business" prompted thoughts of the "Big Five" corporations. Businesses owned and operated by Hawaiian individuals were uneommon. In the years since statehood, some programs have been put in plaee to address this under-repre-sentation of Hawaiians in the entrepreneurial arena. While Native Hawaiians are now approximately 20 percent of the state's populahon, they constitute only seven percent or so of minorityowned businesses here. In recognition of this imbalance, a variety of groups have secured federal funding to create Hawaiian-owned ventures. Resources for Hawaiian Entrepreneurs The recent launching of OHA's Native Hawaiian Revolving Loan Fund will make nearly $3 million in start-up and expansion loans available at competitive rates to qualified Hawaiian applicants over the next three years.

Chester Cabral, NHRLF manager and his staff are working to evaluate and respond to over 200 applications received from Hawaiians since the program began in March. Over 1,500 inquiries have been logged by the staff to date. Karl Udarbe and his staff at Alu Like's Hawaiian Business Development Center assists Hawaiians by offering entrepreneurship training classes and limited free one-on-one technical assistance. FroSf)ective entrepreneurs may receive limited business plan-preparation assistance at the center. However, an appointment must be made. Business-related technical assistance is available (for a fee) from the Honolulu Minority Business Development Center. Additionally, independent private business consultants statewide augment training offered through university and community college courses. The Pacific Business Center at the University of Hawai'i has many people to eall on for help in many different types of jobs and professions. The Chamber of Commerce and the state Department of Businessand Eeonomie Development

continue to serve as invaluable resources for facts, referral assistance and guidance. The Small Business Administration staff provides useful materials and resource booklets to assist in the business plan and loan packaging preparation phases of business development. The Hawaiian Business and Professional Association provides important networking and support activities for Hawaiians. Although these groups represent only a few of the resources available to Hawaiian entrepreneurs, their offerings increase the likelihood of business success for those who take advantage of their programs. Hawaii's dynamic marketplace Opportunities for Hawaiian business owners exist at all levels of Hawaii's marketplace. The federal government and military (8A) contracting guidelines give minority-owned businesses special opportunities to bid for major contracts. The visitor industry brings thousands of new customers to the Hawai'i market every day. This provides loeal businesses with renewable demand for select goods and services that might easily saturate a more static consumer population. This market is particularly interested in Hawaiian-made products that embody aspects of our culture. We have an unprecedented opportunity to capitalize on this culturally targeted demand as a means of financing the Hawaiian Renaissance. Lastly, Hawaii's populahon mix is especially conducive to extensive testing of new products and the conducting of marketing research activities. Corporations frequently select Hawaii as a test market in whieh to measure consumer acceptance. Focus groups meeting specific ethnic, age, ineome and family size criteria ean be readily assembled to respond to new products and or services. Achieving success in business has never been without risk. The failure rate of new businesses is still high and the market is becoming increasingly competitive. As more and more Hawaiians apply their creative energies to business development, however, more will survive the rigors of new business start-up. In the coming years we should begin to see dramatic increase in the number of Hawaiian-owned ventures as a result of the support mechanisms in plaee today.