The National Federation of Independent Business (NFIB) in Hawaii addressed the results of its latest Small Business Economic Trends report, released May 12, which showed the index falling below its historic average for a second consecutive month. The April reading was 95.9, under the long-term average of 98.0.
The topic is important because small businesses account for more than half of Hawaii’s private-sector workforce and are considered central to local economic health, according to the official website.
Michael Iosua, state director for NFIB in Hawaii, said, “The latest small business economic trends report didn’t hold out much good news for the Main Street economy, but one month’s slip does not necessarily indicate a pattern, so a lot remains to be seen. Congress making the 20% Small Business Deduction permanent and the Hawaii Legislature holding firm against too much tax and regulatory burdens are a couple of positive signs that could point to better small business economy reports in the coming months.”
Bill Dunkelberg, chief economist at NFIB, said inflation remains a challenge: “Inflationary pressures continue to be a challenge for Main Street. While small business optimism is currently fragile, the benefits of the Working Families Tax Cut Act should start to feed into the private sector over the next few months.”
According to highlights from April’s report: The Employment Index fell from 101.6 in March to 100.4 in April; reports of both actual and planned price increases rose; only seven percent reported it was a good time to expand their business—the lowest since October 2024—and owners’ expectations for better conditions declined again.
The National Federation of Independent Business represents enterprises with up to nine employees and annual sales near $500,000 while providing advocacy and policy tools throughout Hawaii according to its official website. The organization advances priorities by engaging with lawmakers and offering resources on legislative issues.
Looking ahead, Iosua suggested that actions by Congress or state legislators could improve future reports.
