Hawaii‘s troubled “COVID economy” could be an opportunity for some. But it does require the ability to raise capital for investment – and that kind of money can be hard to come by in Hawaii.
PBN sat down with industry leaders in banking, venture capital, business, and community credit to discuss the outlook for Hawaii and its economic recovery. Access to capital could make a world of difference, but in the past Hawaii has not made it easy for entrepreneurs to borrow money to get started. While many small businesses have gone under or have been put up for sale, people with the will and talent to acquire these businesses and try to turn them around have few options to get funding for them.
Dustin Sellers, founding partner at Koa Capital, said, “There isn’t a good corporate finance environment here for situations like this. The ability to find capital that is so profound in other countries does not exist here – and there is no impetus for it to exist here. “
Part of the challenge is that small business administration or bank business loans are asset based, while Hawaii’s economy is more service based. That means business owners can’t use much as collateral.
Microcredit is one concept that could help. Again, this has yet to be started in Hawaii, but microcredit provision could be an opportunity for those with capital in Hawaii to lend it in small doses. Otherwise, our experts say, a proven Hawaiian method remains one of the best ways to get started as an entrepreneur – starting a Hui with family and friends to share the startup cost.
