Hawaii SBDC Network Generates 8 to 1 Return on State DollarsUniversity of Hawaiʻi
As the state's economy continues to recover, the Hawaiʻi Small BusinessDevelopment Center Network is proving to be a significant player in generatingeconomic activity, according to a pair of newly released studies.
The studies conducted by Dr. James Chrisman, Associate Dean of Researchin the Faculty of Management at the University of Calgary in Alberta, Canada,and Dr. David Hammes, Professor of Economics at the University of Hawaiʻiat Hilo examined the contribution made by the Hawaiʻi SBDC Network to thestate's economic development.
"Within three years, each dollar invested by the state in the HawaiʻiSBDC Network will bring in approximately $8.48 in additional state tax revenues. This is both efficient, and effective use of state funds for economicdevelopment," observed Hammes. "This accelerated pace of economicactivity in turn generates more jobs, higher incomes and greater tax revenues,"Hammes added.
The Hammes study also found that the stepped-up economic activity generatedby the Hawaiʻi SBDC Network produced a Net Annual Economic Impact of $46.5million. That 1999 figure represents a staggering 171.9% increase overthe 1994 figure of $17.1 million.
"The findings in the Hammes study may look suspiciously large. But keep in mind that the Hawaiʻi SBDC Network utilizes each dollar it receivesfrom the state to attract approximately eleven additional dollars from externalout-of-state sources. This program acts as an umbrella under which otherfederal programs are located, which enables us to bring those funds intothe state," said Darryl Mleynek, State Director of the Hawaiʻi SBDCNetwork. "Any way you look at it, this return on investment for thestate of Hawaiʻi is remarkable. And that's the bottom line," he added.