President Obama recently described today’s entrepreneurs as our present day pioneers. They are the ones who are willing to take calculated risks to overcome challenges and create a better future. This spirit is hardwired in the people of Hawai‘i-from the Polynesian voyagers who charted a course to these islands, to laborers who left the plantation to open shops in local towns, to leaders of today’s high-tech startups. Entrepreneurship is an attitude of courage and creativity that is present in small businesses, large companies, nonprofits and government. It is one of Hawai‘i’s greatest strengths.
Today, Hawai‘i is counting on our entrepreneurs to confront our top challenges: creating good jobs, reducing our over-reliance on fossil fuel and imported food, and developing new approaches to creating a 21st century education system. To better understand current challenges, I have been talking with entrepreneurs and small business owners all across our state.
One of the chronic challenges for local small businesses has been accessing the credit they need to start up, buy inventory, make payroll, and survive. Without this flow, Hawai‘i’s small businesses are mired in a constant state of anxiety, especially during this recession. To survive, many entrepreneurs must turn to credit cards to float their businesses, leaving them susceptible to predatory lending practices. Because of this, I introduced and am fighting hard to pass legislation that would make it more difficult for credit card companies to increase fees and raise interest rates on businesses with less than 50 employees.
Also earlier this year, it came to my attention that Hawai‘i was one of only two states that was not taking advantage of America’s Recovery Capital loans for small businesses. These federally backed loans were designed by the Obama administration as an interim solution to help keep small businesses afloat during the worst stretch of the economy. I contacted officials at Hawai‘i’s banks to find out why they were not participating and also why creditworthy businesses are having trouble getting routine business loans and lines of credit. I am confident that increased awareness and dialogue will result in a better working partnership between our banks, small businesses, and government for the benefit of everyone in Hawai‘i.
Finally, small businesses need government to fix our state and county permitting processes. Government employees want to do a good job, but they often lack the tools and support for making improvements — a problem that has been compounded by recent cuts and furloughs. Confusion and delays around permitting can mean life or death to a small business. Trade missions and tax credits can be valuable, but they will not produce long lasting results if basic systems do not work. Furthermore, failure to address these issues creates a vicious cycle where people resent paying taxes, blame is heaped on public service employees, morale deteriorates, and people become even less inclined to contribute to the common welfare.
In Hawai‘i we feel strongly about government’s role in providing services that our private sector cannot provide. Government is critical to keep us safe, educate future generations, create a safety net to support those in need, build the infrastructure to support our communities, and shape a business climate that fosters a healthy economy. To pay for these services, we need a thriving private sector and that means a thriving small business sector.
While our problems can seem overwhelming, we must remember that the history of Hawai‘i has been one of triumph emerging from our challenges. To see this on an everyday level, we only need look at our local entrepreneurs.
•U.S. Rep. Neil Abercrombie, a Democrat, represents the 1st District of Hawai‘i.
