Report Title:

Hawaii Small Business Development Center; Appropriation

 

Description:

Appropriates funds to support the statewide economic development program of the Hawaii Small Business Development Center Network hosted by the University of Hawaii at Hilo.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2020

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

MAKING AN APPROPRIATION FOR SMALL BUSINESS DEVELOPMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that small businesses comprise over ninety—six per cent of all businesses in Hawaii and create eighty—three per cent of all net new jobs in the State.  The Hawaii Small Business Development Center Network (Center) assists small businesses by providing high quality counseling, training, and research services to entrepreneurs and small businesses in the areas of business startup, retention, and expansion through its counseling centers on the islands of Hawaii, Kauai, Maui and Oahu.  Funded in part through a cooperative agreement with the United States Small Business Administration, the Hawaii Small Business Development Center Network requires state matching funds and an affiliation with a university or community college.  The University of Hawaii at Hilo is designated as the host institution for the Hawaii Small Business Development Center Network.

     The Hawaii Small Business Development Center Network assists entrepreneurs and small businesses with accessing capital, developing management capabilities, and building financial skills to make their businesses thrive.  In addition to providing confidential one-on—one counseling by qualified business professionals free of charge, the network also offers a variety of in-class workshops, seminars, and online training.

     The legislature further finds that investing in long term business counseling has significant returns.  In 2006, the Hawaii Small Business Development Center Network provided long term counseling to two hundred fifty—five small businesses and aspiring entrepreneurs and helped them obtain $6,300,000 in financing.  Long term counseling generated forty—two cents in tax revenues for every $1 spent on the Hawaii Small Business Development Center Network program in 2006.  Hence, for every $1 spent on programs, the Hawaii Small Business Development Center Network leveraged $4.82 raised from external sources.

     The purpose of this Act is to appropriate moneys to the Hawaii Small Business Development Center Network to further its mission of providing counseling, training, and research services to small businesses and entrepreneurs.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $542,910 or so much thereof as may be necessary for fiscal year 2008—2009, for creating sustainable economic development through consulting, training, and research services at the Hawaii Small Business Development Center Network as follows:

     (1)  To re-establish a consulting and           $113,260

          training program in Kailua-Kona to service small businesses and entrepreneurs in west Hawaii;

     (2)  To add one full-time business consultant   $187,400

          position in the Oahu center and two half—time business consultant positions (one assigned to the Kauai center and another assigned to the east Hawaii center) to address the demand for consulting services and to reduce the five to six week waiting period in each respective office;

     (3)  To create two full—time business           $172,400

          Development associate positions and the establishment of the Center’s E Division to support entrepreneurial initiatives premised on the generation of revenues and the enhancement of the network’s capacity to serve Hawaii’s small business community; and

     (4)  To fill the vacant research                $ 69,850

          librarian position at the Center’s business research library to offset the client demand for research services and provide a research support arm for the E Division.

     SECTION 3.  The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2008.

 

INTRODUCED BY:

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