SMALL BUSINESS HAWAII (SBH) presents the first major business and economic conference of the New Year, the 23rd Annual Small Business Hawaii Conference, Wednesday, January 13, in the Ala Moana Hotel, from 7:30 a.m. till 1:30 pm.

The public is welcome. Advance paid reservations are required.

The theme, "Small Business '99: Four More Years - The Future Role of Small Business in Hawaii," reflects the commitment of Hawaii's small business community to make changes despite continuing negative business and political indicators. The meeting brings together business owners to address business and political issues facing the state.

Keynote luncheon speaker is former Maui Mayor and gubernatorial candidate Linda Lingle. She will discuss the conference theme.

Other topics include: "The Hawaii Revolution Will be Delayed;" "Privatization NOW!" "Y2K and the Impact on Small Business," and "Effective Marketing Strategies for '99."

There will also be a bi-partisan panel of State Legislators discussing Hawaii's business climate and prospects for changes during the '99 Session.

Three successful small business owners will discuss their secrets to survival - and success in Hawaii's hostile business climate.

SBH will also present its annual business awards, including the SBH Small Business Person of the Year - 1998.

SBH's Conference is an excellent opportunity to network and prepare for the new year. It is a good time to bring employers, employees, business associates and lawmakers together. Make your advance reservations today. Call SBH (396-1724) for more details.

Despite widespread support, the Lingle campaign ended up a couple thousand votes short of victory. Hawaii's best chance for change were dashed in the last election.

BUSINESS FAILS TO MAKE
"HISTORIC" ELECTION CHANGE

The business vote was never more critical in Hawaii than in last month's election. Hawaii came close-but not close enough- to end 40 years of monopoly, one-party, hostile anti-business rule. Linda Lingle, the Republican standard bearer for Governor, and the hope for change and economic vitality, ran a good race, falling 5,000 votes, or 1% short of more than 400,000 votes cast. Governor Ben Cayetano and Mazie Hirono are the incumbent Democrat victors. Votes for the Libertarian candidate plus blank or spoiled votes, totaled more than 7,500; more than the margin of loss.

In the end, Democrat unity, a massive infusion of special interest monies, disinformation and union threats and intimidation turned the tide. Business was committed-but not nearly enough. Big business, as usual, generally speaking, either supported the status quo or sat quietly on the sidelines. Small business, as usual, took the biggest risks and will take the biggest hit. The unions are the big winners - once again.

The final percentage of voters who went to the polls on November 3 was only about 68% - less than the turnout 4 years ago despite more than 100,000 new voters. Many non-voters said they "knew" their vote wouldn't make a difference so they stayed home. They were right. Others sought to protect their jobs, special perks or non-bid contracts and stayed with the status quo.

The Governor said he got the message; the Speaker of the House said there was no election message. The Governor said he will reach out to certain small business organizations - and consider their pleas as long as they don't interfere with labor demands.

Neither the personalities nor their attitude toward business in Hawaii's failing economy have changed.Their priorities have not changed either. The '98 election was an opportunity-and an economic necessity-lost. But small business will never give up.

DEMOCRATS DUMP SOUKI -
13 NEW LAWMAKERS, COMMITTEE
CHAIRS SET FOR '99 LEGISLATIVE SESSION

While most attention during the November election was focused on Hawaii's race for Governor, there were numerous changes legislatively that will present a new face for the 1999 State Legislature which convenes in mid- January.

Republicans had expected to pick up 3 - 4 new Senate seats and 6-8 House seats. It didn't happen.

The 25-member State Senate had 23 Democrats and 2 Republicans before the election, with 13 Senators up for election. During 1999 there will still be the same 23-2 split but as previously reported, five longtime Democrat incumbents lost in the September Primary. All seats were filled by other Democrats on November 3.

In the 51 member House of Representatives, all seats were up for election, and the pre-election Democrat-Republican split was 39-12. Two Republican seats were lost (Sam Aiona was defeated in the 24th District and the seat of former Rep. Quentin Kawananakoa, who ran for Congress then dropped out of the Primary, went to a Democrat), but two new seats kept the Republican minority at 12.

Newly elected freshman lawmakers include:

STATE SENATE

Lorraine Inouye (D) 1st D, Hawaii-N. Kona-Waimea
David Matsuura (D) 2nd D, S. Hilo-Puna
Jan Buen (D) 4th, N. & W. Maui/Molokai/Lanai
Jonathan Chun (D) 7th D, S. Kauai-Niihau
Colleen Hanabusa (D) 21st D, Makaha
Bob Nakata (D) 23rd D, Kaneohe-Kahuku

STATE HOUSE

Jim Rath (R), 6th D, S. Kohala/N. Kona
Sol Kaho'ohalahala (D) 7th D, W. Maui-Lanai-Molokai
Bertha Leong (R) 16th D, Aina Haina-Niu-Mariner's Ridge
Brian Schatz (D) 24th D, Makiki-Tantalus
Sylvia Luke (D), 26th D, Punchbowl/Pauoa
Emily Auwae (R), 44th D, Waianae/Makaha
Iris Catalani (D), 47th D, Kahuku-Kaneohe

Veteran wheeler-dealer, Speaker of the House, Maui's Joe Souki, stung by criticism of conflicts of interest, arrogance and heavy-handedness, was dumped by his fellow Democrats. He was replaced by 22-year member and powerful Finance Chair, Calvin Say of Palolo on Oahu.

A potential challenge to the Senate leadership of Norman Mizuguchi predicated on more Republicans and independent Democrats being elected, didn't happen. Mizuguchi, a strong ally of the Governor and labor unions, solidified his power and deposed the chairmanships and even offices of the remaining Democrat dissidents (not defeated in the election) in a reorganization of Senate committees. Most co-chairmanships were abolished except for Ways & Means, Judiciary and Commerce. Business and economic committees are now headed by labor-backed senators.

With the politicking over, and leadership realignment, the lawmakers will be ready to get down to the business of solving the State's economic and financial problems which will carry over from this year.

Small business needs to continue to be involved and to guard against the next attempt to again try and raise our General Excise and other taxes. The call for more taxes will be loud and clear as the economy continues to worsen in the absence of meaningful political change.

The 1999 State Legislature will convene on Wednesday, January 20, 1999 at 10 am. meanwhile, there are several public hearings, informational briefings and meeting scheduled prior to that. Included are:

A Military Construction Projects Symposium will be held in the State Capitol Auditorium, Tuesday, December 1, from 9 am to noon.

The Small Business Hawaii Legislative Coalition, including other business groups, will meet to discuss the '99 business agenda on Tuesday, December 8, in room #212 at the State Capitol from 10 to 11:30 am. All individuals and business organizations are welcome. For additional information and details, contact Bob Sigall, SBH Legislative Chair at 847-2046. Get involved now to make a difference later.

MEMBERS RE-ELECT TWO SBH DIRECTORS

SBH members in November voted to reelect two SBH Directors: Bob Sigall of Creative-1 and Sam Slom of SMS Consultants. Sigall heads the SBH Legislative Action Committee; Slom is president and executive director of the organization. Each will serve a three-year term.

There are a total of 11 SBH Directors. Members vote for all Directors. During 1999, Five (5) seats will be up for election. Members are encouraged to run for a seat on the Board and to participate actively in all SBH activities and programs.

There is no compensation for SBH Directors (except for the Executive Director); serving on the Board is viewed as an extension of service to the organization, membership and the community.

Details for nominations will appear in a subsequent issue of SB NEWS or information can be obtained by calling 396-1724.

SBH CO-SPONSORS OLIVER NORTH SPEECH

SBH cosponsored (along with Young America's Foundation in Virginia), a speech by Col. Oliver North (USMC, Ret.) at the University of Hawaii's Campus Center Ballroom on Nov. 12.

North, high profile military hero and former Reagan assistant, is a popular radio talk show host with a daily audience exceeding 2.5 million. North's program is carried locally by KHVH radio from 1-3 pm, Monday through Friday. (North broadcast his national program live from KHVH while here).

SBH was involved because North is also a small business owner. His company, Guardian Industries, employs more than two dozen people and provides body armor and personal security products for law enforcement personnel. North also holds several business product patents.

About 250 people-college students and members of the community-heard North's UH remarks.

Photos from Mr. North's visit are available through this link.

SBH'S THE TRADESHOW DRAWS CROWD

Small Business Hawaii's The Tradeshow, business expo presented by Pacific Business News, was held Tuesday evening November 17 and all-day Wednesday, November 18. KHVH Real radio 83 and KITV-4 were media partners for the event.

Several thousand guests visited the more than 150 booths featuring an immense variety of goods and services available from businesses to other businesses in our Hawaii marketplace.

A special edition of Small Business Hawaii's Sunrise Networking Breakfast was held Wednesday morning. Guest speakers included: Geal Fukumoto (Edward Jones), Karen Huffman (McDonald's of Hawaii) George Mason (PBN Publisher Emeritus), and Cliff Slater (Maui Divers of Hawaii/The Hawaii Reason Foundation). They discussed what business can - and must- do after the disappointment of the '98 elections.

The keynote luncheon was to feature Linda Lingle but due to a scheduling conflict, Rick Hamada of KHVH radio was an able stand-in. Hamada's message echoed the never give up phgilosophy of local small businesses.

Relevant workshops and seminars were also held during show hours. Producer Mike Rossell of Production Hawaii, Inc., a veteran trade show entrepreneur, was pleased with this first SBH effort and is already hard at work planning an even bigger and better event for November, 1999. Your input for change is solicited and important. Details will follow soon.

Photos from the Trade Show are available for viewing by following this link.