Special to Hawai`i's H4 | Volume 21, No. 6 | June 1996

The World Wide Web Edition
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The U.S. Small Business Administration (SBA) will honor 52 of America's top small business entrepreneurs at national ceremonies in Washington, D.C., during Small Business Week, June 2-8. The theme for Small Business Week 1996 is "Championing America's Entrepreneurs."

The leading business owners come from each state, plus the District of Columbia and Puerto Rico. Each has already been named Small Business Person of the Year from his/her state or territory. One of the 52 will be selected as a national Small Business Person of the Year during the ceremonies in June.

Hawaii's 1996 Small Business Business Person is Richard Moody, Aloha Conferencing Service, Inc. A complete listing of all 1966 Hawaii SBA small business awardees was included in the May issue of SB NEWS. Winners were honored May 23 at ceremonies held at the Ilikai. The event was cosponsored by the SBA, Chamber of Commerce, Hawaii Business League, NFIB and SBH.

For the past 33 years, the President issued a proclamation for Small Business Week.

SBA Administrator Philip Lader said, "It is critical to the economy of our nation that the small business community continues to flourish. We salute the men and women whose ingenuity, integrity and innovative spirit contribute so greatly to the American economy and our society."

During Small Business Week, the SBA also honors a Young Entrepreneur of the Year, (Hawaii's 1966 winner is Shakil Ahmed, of The Ahmed Corporation) a Small Business Exporter of the Year and individuals who have been outstanding advocates of minority (Hawaii's winner is Jean Geer of the UHH SBDC Network, Hilo), women, and veteran-owned small businesses. Small business advocates who work in the news media, accounting and financial service fields are also recognized. Acknowledgement also goes to outstanding small business prime contractors and subcontractors who do business with the federal government. Additionally, the Entrepreneurial Success Award is presented to a former small business that has developed into a large business with SBA assistance.

The winners meet with top administration officials, members of Congress and leaders of national business organizations.

STATE LEGISLATURE AN EMBARRASSMENT

"If we adjourn with this record, we do not deserve to return. We have failed once again to restore the public confidence in state government." - State Senator Milton Holt (D)

"I am particularly disappointed in the manner in which Senate Ways and Means Chairwoman Donna Ikeda and Consumer Protection Chairman Milton Holt conducted their committees. Many of the problems this Legislature has had can be traced directly to their doors." - Richard Port, Chair, Democratic Party of Hawaii

"I think everyone realizes that the session was really such a disaster that there's very little one can say that's positive about it." - State Senator Michael Liu (R)

"The Legislators spent too much time discussing issues far from the pocketbook." - Lowell Kalapa, Tax Foundation of Hawaii

"The lawmakers could have stayed home and saved us 4 months of aggrivation and millions of dollars in costs. They debated furloughing public employees; maybe the voters will furlough some incumbents in November." - Sam Slom, Small Business Hawaii

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Those comments fairly well sum up the "do-nothing" 1996 State Legislature which adjourned on time April 29. (There is a movement to reconvene a limited Special Session this summer to try once again to deal with the no-fault auto insurance issue). There was NO LEADERSHIP; NO STATESMANSHIP.

The Session produced NO TAX RELIEF; NO MEANINGFUL WORKERS' COMP REFORM; NO PRIVATIZATION and NO GOVERNMENT DOWNSIZING. For two years the special interests in the Legislature wrestled with auto insurance reform and for two years, came up empty, leaving residents with the second highest rates in the U.S. A half-hearted attempt to end the nefarious "High 3" lucrative pension benefit for lawmakers, also failed.

The SBH Legislative Action Committee (LAC) under co-chairs Bob Sigall and Cindy Rasmussen, reviewed the Session on May 2 and the Committee voted to grade the Session a "D-" (Individual Legislator grades by PAYCHECKS HAWAII are here). Actually, since the lawmakers did practically nothing, maybe they could qualify for a better grade for not making things even worse.

One real plus, seldom mentioned in the press, was the passage of two bills that permit Limited Liability Partnerships and Corporations (LLCs) in Hawaii. The other 49 states have had LLCs; as usual, we are last when it comes to business.

Workers' compensation reform, was more symbol than substance. The State's HEMIC, Hawaii Employers Mutual Insurance Company, spearheaded by Lt. Governor Mazie Hirono, promises to pull small businesses out of the Assigned Risk Pool; it does not promise lower rates. The first Directors of HEMIC, to be appointed by the Governor, should have broad-based business experience. (Want to apply for the non-compensated position? Contact SBH at 396-1724).

In Unemployment Compensation, the State DLIR pulled two fast ones: (1) stealing private UI reserve funds to pay off past striking public employees (a special $4.3 million supplemental appropriation allowed the DLIR to return the UI Reserve Funds), and sneaking in an amendment to SB 3110 to extend for another 5 years the wasteful "employee payroll tax" slated to sunset after 5 years this December.

Privatization got talk but no action. TAXES didn't go up, but FEES did. Same result for business. HIOSH (OSHA) was minimally "reformed" here despite widespread abuse, and new HIOSH fees were authorized.

The public mood now toward the State Legislature - especially from the business community who have been abused or taken for granted for a decade - is anger, disgust and frustration . But will we remember in November? Chance for real change is here now. Many -too many - small business owners are not registered to vote, registered in the wrong district, or say there is no one or reason to vote.

In the last 10 years, no legislative session got a passing grade for meaningful pro-business legislation.

Year Grade

1996 D-
1995 D
1994 F+
1993 D+
1992 F
1991 F
1990 F
1989 F
1988 D
1987 D
1986 F

* compiled from previous years' Small Business News issues.

SBH Members, and their guests, are invited to attend and participate in the next Share N' Tell Business Forum, Wednesday, JUNE 19, at the Kahala Mandarin Oriental Hotel, 10:00 a.m. to 1:00 p.m.. Many members missed the opportunity March 27 to preview the hotel and enjoy business networking. June 19 is another excellent opportunity to visit the new hotel, enjoy a major member benefit and learn practical business tips from 10 outstanding Table Topic Facilitators regarding sales, marketing, office lease negotiation, customer retention and much more!

Lt. Governor Mazie Hirono will be joining members at lunch, briefly discussing "HEMIC," the recently-passed Hawaii Employers Mutual Insurance Company act, affecting businesses in the work comp Assigned Risk Pool.

SBH Business Forums are designed to help you do more business and solve business problems. It is a great source of business networking, business contacts and education.

Members choose one of ten (10) exciting and informative table Topics, led by a knowledgeable member-Facilitator, prior to the luncheon program.

TableTopics and Facilitators include:

"Biggest Mistakes Owners Make With Benefit Plans-and How to Avoid Them," Geal Fukumoto, Edward D. Jones Co. (Kaneohe); "How to Get Money When Times Are Tough," Todd Hoch, AVP, Bank of America-Hawaii; "New Directions in Marketing," Dr. Drake Beil, Solutions, Inc.; "Making Change Work For You," Beth Terry, Pacific Rim Seminars; "Tips For Retaining Your Customers," Bob Baer, Robert J. Baer Marketing; "Secrets of Successful Direct Mail," William Gladstone, Wm. Gladstone International Marketing, Inc.; "How to Effectively Negotiate Your Office Lease" Clarice Johnson, Johnson Property Management; "Sales Power: Relationship Selling and Other Valuable Techniques" Jenny Friskel, Island Directory; "Brainstorming New Ideas, Products and Inventions," Jed Gaines, Apartment Appearance, Inc. ; "Employee Leasing Options," Jack Schneider, JS Services.

The cost of the Share n' Tell Business Forum is only $25 for SBH members and includes the entire program, luncheon and parking. Advance, paid reservations are required and will be accepted on a first-come, first-serve basis.

The SBH Board of Directors, meeting May 21, announced that Executive Director Sam Slom will be placed on half-time sabbatical leave so that he can run for state elective office. The leave will be effective August 5-November 5. The 1996 General Election is November 5.

The Board also announced that Slom will continue his volunteer duties as President of the organization.

Executive Committee members Jed Gaines, Director/Vice President; Kenny Lum, Director/Treasurer, and Jean Fukuda, Director/Corporate Secretary, indicated that the SBH office will continue to be open regular hours (Monday-Friday, 8am-5 pm) and staffed during the three-month sabbatical period, and that the SBH Board is prepared to assume any additional duties should it become necessary.

The Board requests comments and suggestions concerning its actions in this matter from SBH members. Any member may call, write or FAX their thoughts, c/o vice president Gaines at the SBH office.

In this issue of Small Business News, SBH announced its annual health benefits revisions and pricing structures. This year, SBH is offering members health care plans from HMAA, Kaiser Permanente, Kapiolani Health-Hawaii and Queen's Island Care. Many of the plan benefits have been revised from the previous year. It is advised that SBH members read the details about the plans in the regularly printed issue of Small Business News.

Author-Educator John Taylor Gatto, will make a special public appearance and speech, Saturday, June 8, at The Academy of the Pacific, Damon Hall, 913 Alewa Drive. The event will be cosponsored by The Academy; Libertarian Party of Hawaii, Small Business Hawaii and Winners' Camp. It is open to the public. The cost is only $5.

Gatto, a much-honored 26-year public school teacher from New York-former "Teacher of the Year"- wrote the best-selling books, condemning government education, Dumbing Us Down: The Hidden Curriculum of Compulsory Schooling, and The Exhausted School. His latest book is, The Empty Child.

For information/reservations, call Angie Golis Yamamoto at The Acdemy, 595-6359.

Small Business Hawaii joined with 250 businesses at the 1996 "Small Business on the Move" Expo on May 8 in the newly renovated Blaisdell Center Exhibition Area. Presented by Bank of America Hawaii, and co-sponsored by the Small Business Council of the Chamber of Commerce, the Expo was organized by Production Hawaii, Inc. About 4,500 attendees visited the all-day event.

Member James E. Fox Designs designed, built and donated the distinctive SBH booth. It attracted several hundred expo goers and entreprenuers who stopped by to get information about Small Business Hawaii.

On Saturday, June 29, 200 teams of 10 people will be at Kapiolani Park walking or running in relay fashion. There will be camping, entertainment, food, and lots of fun, all to help cancer patients and their families here in Hawaii.

The fun begins at 7 pm and continues until 7 am. Teams and individuals compete for prizes and raise money for the American Cancer Society. This is a statewide event sponsored by Roberts Overnighters.

For information, call Pamela Gottlieb at 522-0333. Sign up your team today!