25+ Essential Hawaii Small Business Statistics (2026)

Hawaii's 144,375 small businesses make up 99.3% of all businesses in the state and employ nearly half of the private workforce. From tourism to real estate, small firms shape the economic identity of every island. Here's what the latest data reveals.

How Many Small Businesses Are in Hawaii in 2026?

The number of small businesses in Hawaii has grown steadily over the past few years, even as the state navigated pandemic recovery and rising costs. These figures come from the most recent SBA Small Business Profile for Hawaii, released in 2025.

• The number of small businesses in Hawaii is 144,375, representing 99.3% of all businesses in the state. (SBA Office of Advocacy, 2025 State Profile)
• Small businesses employ 251,556 people in Hawaii, which accounts for 49.6% of the state's private-sector workforce. (SBA Office of Advocacy, 2025 State Profile)

Hawaii Small Business Openings, Closings, and Job Growth

The churn rate among Hawaii establishments tells a more dynamic story than the headline count suggests. Here's how business creation and job growth played out in the most recent data window.

• Between March 2023 and March 2024, 4,609 establishments opened and 4,813 closed, for a net decrease of 204 establishments statewide. (SBA Office of Advocacy, 2025 State Profile)
• Small businesses accounted for 4,265 of those openings and 4,454 of the closings during the same period. (SBA Office of Advocacy, 2025 State Profile)
• Opening and expanding establishments added 51,978 jobs, while closing and contracting ones lost 50,170, for a net gain of 1,808 jobs. (SBA Office of Advocacy, 2025 State Profile)

Business Owners in Hawaii: Demographics and Ownership

Hawaii stands out nationally for the diversity of its entrepreneurial community. Racial minorities, veterans, and women all play a significant role in driving the state's small business economy.

• Racial minorities make up 73.4% of Hawaii's workers and own 51.3% of the state's businesses, a rate far above the national average. (SBA Office of Advocacy, 2023 Profile, using Census Bureau Annual Business Survey 2019 data)
• Veterans own 6.4% of businesses in Hawaii. (SBA Office of Advocacy, 2023 Profile)
• Self-employed individuals running incorporated businesses in Hawaii earn a median income that historically falls below the national average, largely due to the state's high cost of living. Exact 2026 figures are pending release by the U.S. Census Bureau's American Community Survey.

Hawaii's Largest Industries for Small Business

The islands' economy runs on a handful of core sectors, and small firms dominate each of them. Understanding the industries of Hawaii helps entrepreneurs spot where demand is strongest and where competition is manageable.

Hawaii Tourism Industry Statistics

Tourism drives more small business activity than any other sector on the islands. Accommodation, food services, and recreation businesses depend heavily on visitor spending, and small firms carry the bulk of the workforce in these areas.

• Tourism remains Hawaii's largest industry. Before the pandemic, in 2019, Hawaii welcomed about 10.4 million visitors who spent more than $17 billion in the state. (Hawaii Tourism Authority, 2019 Annual Visitor Research Report)
• In 2024, arts, recreation, accommodation and food services contributed $9.7 billion to Hawaii's real GDP. (USAFacts/BEA, Hawaii GDP by industry, 2024)
• SMBs in the accommodation and food services sector account for 49.4% of the total private workforce in that same sector. (SBA Office of Advocacy)

Beyond tourism, Hawaii's economy leans heavily on the government sector and real estate, both of which create opportunities for small business contractors and service providers.

• The government sector contributed $17.8 billion to Hawaii's GDP in 2024, making it the single largest contributor by output. (USAFacts/BEA, Hawaii GDP by industry, 2024)
• Real estate, rental, and leasing contributed $15.7 billion to the state's real GDP in 2024, reflecting Hawaii's high property values and active rental market. (USAFacts/BEA, Hawaii GDP by industry, 2024)

Hawaii Economy Facts and GDP

Hawaii's real gross domestic product provides the big-picture context behind small business activity on the islands. These figures help entrepreneurs understand the scale of the market they're operating in.

• Hawaii's real GDP reached $90.3 billion (chained 2017 dollars) in 2024, up 1.9% from 2023. (USAFacts, using Bureau of Economic Analysis data)
• Real GDP per person was $62,428, ranking Hawaii 23rd among U.S. states. (USAFacts/BEA, 2024)

Hawaii Tax Burden and General Excise Tax

Hawaii's tax environment is one of the toughest for small business owners in the country. The combination of high income taxes and the unique General Excise Tax directly affects margins for every firm operating on the islands.

• Hawaii has the second-highest tax burden in the US after New York, with a combined state and local tax burden that contributes to higher commodity prices and a challenging business climate.
• The General Excise Tax (GET) applies at a base rate of 4% to most business activities, plus a 0.5% county surcharge in Honolulu. Unlike a traditional sales tax, GET is levied on the business, not passed directly to consumers.
• Corporations in Hawaii are subject to a corporate income tax with rates ranging from 4.4% to 6.4%.
• State tax returns are due on the 20th day of the fourth month after the close of the tax year. If your tax year follows the calendar year, returns are due April 20th.
• Revenue from partnerships is distributed to the individual partners and is then taxed at both state and federal levels.

Starting a Small Business in Hawaii: Licensing and Formation

Starting a small business in Hawaii involves a few key steps, from filing with the state to getting your tax accounts in order. Here's what the licensing landscape actually looks like for new business owners.

• Hawaii does not have a general business license requirement for all businesses. Certain firms may need permits from specific state agencies, such as an environmental permit from the Hawaii Department of Health.
• All businesses must obtain a Hawaii Tax Identification Number, which registers the business for various tax licenses. The most common is the General Excise Tax (GET) license, which costs a one-time $20 fee.

Hawaii LLC Formation and Registered Agent

Forming an LLC is the most popular route for small business owners in Hawaii. The filing costs are relatively low, but the state does require a registered agent and annual reporting to stay in good standing.

• To form a Hawaii LLC, you file Articles of Organization with the DCCA for $51 ($50 plus a $1 State Archives fee). The annual report costs $12.50 when filed online. For a full breakdown of expenses, see the cost of starting an LLC in Hawaii. You can also check the Hawaii LLC processing timeline to plan your launch.
• Hawaii state law requires that every Hawaii LLC designates a Hawaii registered agent available during regular business hours at a physical address within the state.
• Entrepreneurs can verify business name availability through the DCCA's Business Registration Division using the Hawaii business entity search portal.

Business Opportunities and Growing Industries in Hawaii

Business opportunities in Hawaii extend well beyond tourism, even though the visitor industry remains the engine of the economy. Entrepreneurs looking at the best business to start in Hawaii should pay attention to where the demand is rising and where small firms have the strongest foothold.

• Between March 2021 and March 2022, small businesses contributed a net increase of 31,947 jobs, or 72.1% of total net job growth in the state. (SBA Office of Advocacy, 2023 Profile)
• The accommodation and food services, professional services, health care, and real estate sectors represent the strongest growth areas for small firms in Hawaii.
• Hawaii's geographic isolation creates natural advantages for businesses focused on local services, from property management and home repair to specialty food production and wellness services.
• The state's creative industries and eco-tourism segments show consistent growth potential, supported by programs from the Department of Business, Economic Development and Tourism (DBEDT).

Hawaii Small Business Exports

Small exporters punch above their weight in Hawaii. Despite the state's remote location, hundreds of small firms are actively involved in international trade, and they account for a significant share of total export revenue.

• A total of 677 identified firms exported goods worth $341.0 million from Hawaii in 2022. (SBA Office of Advocacy, 2025 State Profile)
• Of those exporters, 586 were small businesses, representing 86.6% of all exporting firms. (SBA Office of Advocacy, 2025 State Profile)
• Small firm exports reached $194.0 million, making up 56.9% of exports by identified firms. (SBA Office of Advocacy, 2025 State Profile)

Hawaii Small Business Loans and Funding Resources

Access to capital is one of the biggest challenges for small businesses in Hawaii, especially given the high cost of real estate and operations. Federal SBA lending remains a critical source of funding for local entrepreneurs.

• In fiscal year 2024, the SBA Hawaii District Office recorded 230 7(a) loans totaling $55.6 million. (Honolulu Star-Advertiser, February 2025, citing SBA data)
• Central Pacific Bank led all Hawaii lenders in the SBA 7(a) program with 113 loans totaling $9.5 million. (Honolulu Star-Advertiser, February 2025)
• The SBA also issued 14 loans through the 504 program for fixed-rate, long-term financing aimed at small business growth and job creation.
• The Hawaii Small Business Development Center (SBDC) provides free advisory services and training to entrepreneurs across Oahu, Maui, Kauai, and the Big Island. It's one of the best starting points for anyone looking for small business help in Hawaii.

Local Businesses in Hawaii by Island

Local businesses in Hawaii are distributed unevenly across the Hawaiian islands, with Oahu serving as the dominant commercial hub. Understanding how business activity breaks down by county helps entrepreneurs pick the right location.

• Honolulu County (Oahu) concentrates the vast majority of the state's businesses, reflecting its status as the population and economic center of Hawaii.
• Maui County, Hawaii County (Big Island), and Kauai County each have smaller but active small business communities shaped by tourism, agriculture, and local services.
• Entrepreneurs can search for registered businesses in Hawaii through the DCCA's online database at Hawaii Business Express to check entity status, filing history, and registered agent information.
• The state's small business ecosystem includes organizations like the Chamber of Commerce Hawaii, PEO providers in Hawaii, and local county economic development boards that support local businesses across every island.
• For a national perspective, see how Hawaii compares in our overview of small business statistics across all 50 states.

Sources

• U.S. Small Business Administration, Office of Advocacy – 2025 Hawaii Small Business Profile: Primary source for small business counts, employment, establishment dynamics, and export data specific to Hawaii.
• U.S. Bureau of Labor Statistics – Business Employment Dynamics, Hawaii: Tracks quarterly job gains and losses from opening, expanding, closing, and contracting establishments in Hawaii.
• Hawaii Department of Business, Economic Development and Tourism (DBEDT) – Data Book: State-level economic indicators including employers by size, industry breakdowns, and GDP projections.
• USAFacts – Hawaii GDP by Industry (BEA data): Verified gross domestic product and industry-level GDP contributions for Hawaii, sourced from the Bureau of Economic Analysis.
• Hawaii Department of Taxation – General Excise Tax Guidance: Official source for GET rates, county surcharges, filing deadlines, and business tax registration requirements.
• Hawaii Department of Commerce and Consumer Affairs (DCCA) – Business Registration Division: Official portal for LLC formation, annual reports, business name searches, and registered agent compliance.