HONOLULU, July 8, 2025—Michael Iosua, the Hawaii State Director of the National Federation of Independent Business (NFIB), commented on the latest release of the monthly Small Business Optimism Index. The index showed a slight decline in June, decreasing by 0.2 points to 98.6, which is slightly above the long-term average.
“With the 20% Small Business Deduction now permanent and Hawaii state policy set for this year, entrepreneurs will have a better idea if they can bring a new employee aboard or make an equipment purchase. Congress did the right thing in not letting the deduction expire at the end of the year,” said Iosua.
The NFIB’s Small Business Optimism Index is widely used as a measure of small business health in America. It is utilized by federal and state policymakers as an indicator of economic conditions affecting small businesses, which employ half of all workers and create more new jobs than large corporations.
Bill Dunkelberg, NFIB Chief Economist, noted that “Small business optimism remained steady in June while uncertainty fell. Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs.”
The report highlighted several key findings:
– The net percentage of owners expecting better business conditions dropped three points to a net 22%, which remains positive compared to historical averages.
– The net percentage of owners anticipating higher real sales volumes decreased three points to a net 7%.
– Sixteen percent of small business owners identified labor quality as their primary concern, unchanged from May.
– Inflation was cited by eleven percent of owners as their main problem, marking its lowest level since September 2021.
The NFIB continues its mission to advocate for small businesses across America through its nonpartisan efforts both nationally and locally.
