The National Federation of Independent Business (NFIB) in Hawaii commented on the latest Small Business Optimism Index, which recorded a 0.5-point increase in December, reaching 99.5 and remaining above its long-term average. The main factor behind this rise was an increase in the number of business owners expecting better business conditions. Additionally, the Uncertainty Index dropped by seven points from November to 84, marking its lowest level since June 2024.
Michael Iosua, state director for NFIB in Hawaii, stated: “It was good to see the last Small Business Optimism Index of 2025 end on a somewhat positive note. Not too far back in the minds of Main Street business owners was the relief they felt about the 20% Small Business Deduction being made permanent instead of being allowed to expire at the end of last month.”
Bill Dunkelberg, NFIB Chief Economist, added: “2025 ended with a further increase in small business optimism. While Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges, and an increase in capital investments.”
According to highlights from the report:
– The net percentage of owners expecting improved business conditions rose by nine points from November to a net 24%, seasonally adjusted.
– When evaluating their businesses’ overall health, 9% rated it as excellent (down two points), 54% as good (up one point), 34% as fair (up four points), and 3% as poor (down two points).
– Taxes were cited by 20% of small business owners as their most important problem—an increase of six points from November and the highest level since May 2021.
In conjunction with this report, NFIB released a new episode of its “Small Business by the Numbers” podcast. Hosted by Holly Wade and Peter Hansen from the NFIB Research Center, the podcast discusses data and trends affecting small businesses across the country.
The monthly Small Business Optimism Index is widely used by policymakers such as the Federal Reserve and Congressional leaders to gauge small business sentiment nationwide. It serves as a national indicator rather than providing state-level breakdowns.
For ongoing updates about small businesses in Hawaii, information is available at www.nfib.com or via X @NFIB_HI.
NFIB has represented small businesses for over eight decades across all states and remains dedicated exclusively to supporting independent business owners through advocacy efforts.
