University of Hawai'i
(808) 956-8856 Telephone
For Immediate Release:
April 26, 2001
Kathy Hammes, (808) - 974-7330
|Hawai`i SBDC Network generates 8 to 1 return on State dollars|
As the state's economy continues to recover, the Hawai`i Small Business Development Center Network is proving to be a significant player in generating economic activity, according to a pair of newly released studies.
The studies conducted by Dr. James Chrisman, Associate Dean of Research in the Faculty of Management at the University of Calgary in Alberta, Canada, and Dr. David Hammes, Professor of Economics at the University of Hawai`i at Hilo examined the contribution made by the Hawai`i SBDC Network to the state's economic development.
"Within three years, each dollar invested by the state in the Hawai`i SBDC Network will bring in approximately $8.48 in additional state tax revenues. This is both efficient, and effective use of state funds for economic development," observed Hammes. "This accelerated pace of economic activity in turn generates more jobs, higher incomes and greater tax revenues," Hammes added.
The Hammes study also found that the stepped-up economic activity generated by the Hawai`i SBDC Network produced a Net Annual Economic Impact of $46.5 million. That 1999 figure represents a staggering 171.9% increase over the 1994 figure of $17.1 million.
"The findings in the Hammes study may look suspiciously large.
But keep in mind that the Hawai`i SBDC Network utilizes each dollar it receives
from the state to attract approximately eleven additional dollars from external
out-of-state sources. This program acts as an umbrella under which other
federal programs are located, which enables us to bring those funds into
the state," said Darryl Mleynek, State Director of the Hawai`i SBDC
Network. "Any way you look at it, this return on investment for the
state of Hawai`i is remarkable. And that's the bottom line," he added.