Report Title:

Hawaii Small Business Development Center; Appropriation

Description:

Appropriates $905,000 to extend the economic development program of the Hawaii Small Business Development Center.

HOUSE OF REPRESENTATIVES

H.B. NO.

2221

TWENTY-SECOND LEGISLATURE, 2004

 

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. A sustainable economy is one that integrates long-term economic growth, environmental quality, and social fairness. Sustainable economic development is important to establishing a firm economic foundation in Hawaii, especially in the small business sector. However, Hawaii's small business sector has received a grade of "F" from the Corporation for Enterprise Development for nine out of the previous ten years, resulting in a ten-year declining trend in per capita income for Hawaii compared to the rest of the United States.

The Hawaii Small Business Development Center (Hawaii SBDC) aims to stimulate the economy and help small businesses and new ventures succeed and expand, aiding the growth of a sustainable economy. It assists with the development of their entrepreneurial skills through free counseling, training, research, advocacy, and other resources and activities, serving over one thousand individuals each year. Hawaii SBDC is the only statewide business assistance organization in Hawaii, a partnership program funded by the U.S. Small Business Administration, the University of Hawaii at Hilo, and a consortium of other federal, state, and private-sector sponsors and partners.

The purpose of this Act is to appropriate moneys to the Hawaii SBDC to further its work of helping small businesses grow through management-force training. Management-force training promotes improvements in the conditions under which small businesses thrive. Hawaii SBDC has the experience to deliver such training, having provided management-force training statewide since 1990.

This investment in human capital will produce residual benefits that will lead to real, sustained growth and high productivity. Funding would generate approximately $95,000,000 in annual economic impact. This projection is based on an independent economic impact study completed in 2002, The Annual Economic Impact of the Hawaii Small Business Development Center. According to the study, for every dollar invested by the State, $6.73 is returned to the State in the first year in new, incremental taxes through new job creation, safeguarding of existing jobs, and sales increases.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $905,000 or so much thereof as may be necessary for fiscal year 2004-2005 to extend the economic development program of the Hawaii Small Business Development Center.

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

SECTION 3. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

_____________________________