Covering the Cost: How to lower the cost of doing business in Hawaii

News admin May 20, 2026 0 Comments

Covering the Cost: How to lower the cost of doing business in Hawaii

HONOLULU (HawaiiNewsNow) – In HNN’s new livestream show “Covering the Cost with Annalisa Burgos,” we break down the numbers behind Hawaii’s affordability crisis in candid conversations with financial experts, entrepreneurs and community leaders.

HONOLULU (HawaiiNewsNow) – In this episode of “Covering the Cost” on May 20 at 12:30 p.m., Annalisa Burgos sits down with Hawaii Chamber of Commerce President/CEO Sherry Menor and Hawaii Business Magazine editor-in-chief Jennifer Ablan to talk about the cost of doing business in Hawaii.

Small businesses make up more than 99% of all businesses in the state, employing nearly half the private workforce. But the state also has one of the highest first-year business failure rates in the nation, with 25.4% of new businesses closing within their first year, compared to the national average of 21.5%.

Economic factors such as high operational costs, workforce shortages, limited market size and little access to capital are some of the reasons business owners find it hard to sustain growth and remain resilient amid broader economic challenges, like the war in Iran and federal spending cuts. Experts say high costs of labor, rent, utilities, taxes and shipping, along with strict regulations hamper business growth.

According to UHERO, more than 38% of Hawaii small businesses report difficulty hiring, with 62% citing a lack of qualified candidates and 39% citing budget constraints.

Economists also cite slow wage growth as a major challenge in keeping workers in Hawaii, coupled with the high cost of living. A 2025 Holomua Collective survey found 75% of middle-income workers in Hawaii have considered leaving the state due to housing costs.

Nearly 30% of Hawaii small businesses face barriers to financing, especially to cover marketing, sales support and financial and human resources. Now, artificial intelligence is enabling local businesses to automate certain tasks, saving time and money.

Several federal and state programs are available, including Small Business Administration grants and low-interest loans. But over the past two years, the SBA Hawaii District Office has seen a drop in demand for the flexible loans.

Accelerator programs and venture capital associations like Mana Up, Blue Startups, and PICHTR also provide funding, mentoring and resources for startups looking to scale up.

Catch “Covering the Cost with Annalisa Burgos” Wednesdays at 12:30 p.m. online, on HNN’s streaming app and anywhere you get your podcasts.

From skyrocketing housing prices to the country’s highest tax burden, Annalisa is covering the cost of aloha in America’s most expensive state and offering practical strategies, policy insights, and honest talk about what it really takes to call Hawaii home.