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Native Hawaiian Businesses Booming -- U.S. Census Bureau report issued June 2006 shows that Native Hawaiians (and other Pacific islanders) are creating new businesses at triple the rate of other ethnic groups (and they are doing so without federal recognition of an Akaka tribe).


A carefully orchestrated and well publicized press conference was held Wednesday June 28, 2006 in Honolulu, featuring a newly released report from the U.S. Census Bureau showing that "Native Hawaiian" businesses are booming. Native Hawaiians (and other Pacific Islanders) are creating new businesses at three times the rate for the population as a whole.

The Honolulu Advertiser, Star-Bulletin, Pacific Business News, and neighbor island newspapers published articles which are copied below. Those articles failed to provide full access to important information, when they could easily have done so. The original press release is provided below, along with a link to download the complete 283-page report.

Native Hawaiians are creating new businesses at a much faster pace than the population as a whole, both in Hawai'i and throughout the United States; and those businesses are flourishing.

The newly released report shows clearly that Native Hawaiians are fully capable of creating wealth for themselves and their families on the same basis as everyone else -- and that they have been more successful in doing so than most other folks. Native Hawaiians are not the poor, downtrodden helpless victims of history as supporters of the Akaka bill like to portray them.

The success of Native Hawaiian business owners has been achieved under the sovereignty of the United States and State of Hawai'i, on a level playing field with equal protection of the laws, and without any need for an Akaka tribe.

The importance of the new Census report is shown by the fact that the Director of the Los Angeles Regional Office of the U.S. Census Bureau attended the press conference in Honolulu, along with the Chairperson of the Office of Hawaiian Affairs and some high profile Native Hawaiian business owners.

Somebody spent several hundred dollars to use the services of US Newswire to circulate press releases announcing the Wednesday news conference beforehand, and then again to publish a press release simultaneously with the Honolulu news conference. That last press release contains more data than were included in the Honolulu newspapers, and is copied below.

The 283-page report from the Census Bureau, which is the topic of this press release, is entitled "Native Hawaiian and Other Pacific-Islander-Owned Firms: 2002" and is based on the 2002 Economic Census Survey of Business Owners." Thus the data are now about 4 years old, and are only now being reported in a fancy new booklet published by the Census Bureau and dated June 2006. Why the long delay? Ask the Census Bureau bureaucrats! Why the publication of this report at this moment in time, three weeks after the Akaka bill failed to survive a cloture vote in the Senate? Good question! Why did both Honolulu newspapers, and others, fail to publish in their articles the URL for downloading the full 283-page report? Poor reporting! Here's the download:

http://www.census.gov/prod/ec02/sb0200csnhpi.pdf


ORDER OF APPEARANCE OF ARTICLES COPIED BELOW:

(1) U.S. Newswire press release, embargoed for publication until 4 PM Eastern time on June 28, 2006 to match the time of the Honolulu news conference at 10 AM in Honolulu.

(2) Pacitfic Business News report

(3) Honolulu Advertiser report

(4) Honolulu Star-Bulletin report

(5) West Hawaii Today (Kona) [includes descriptions of specific local businesses]

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(1) U.S. Newswire press release, embargoed for publication until 4 PM Eastern time on June 28, 2006 to match the time of the Honolulu news conference at 10 AM in Honolulu.

http://releases.usnewswire.com/GetRelease.asp?id=68459

US Newswire, 6/28/2006 4:00:00 PM

Census Bureau: Growth of Native Hawaiian- and Other Pacific Islander-Owned Businesses Over Three Times the National Average

To: National Desk, Business Reporter

Contact: Mike Bergman of U.S. Census Bureau Public Information Office, 301-763-3030 or 301-457-1037 (TDD), or pio@census.gov

WASHINGTON, June 28 /U.S. Newswire/ -- The number of Native Hawaiian- and other Pacific Islander-owned businesses grew 49.4 percent between 1997 and 2002, over three times the national average of 10.3 percent for all businesses. The 28,948 businesses generated about $4.3 billion in revenues, up 3.4 percent from 1997. This is according to a new report, "Survey of Business Owners: Native Hawaiian- and Other Pacific Islander-Owned Firms: 2002 (PDF)," released today by the U.S. Census Bureau.

More than half (58 percent) of all Native Hawaiian and other Pacific Islander firms were Native Hawaiian-owned (16,776). Guamanian- or Chamorran-owned firms accounted for 13.1 percent (3,797) and Samoan-owned firms comprised 7.6 percent (2,204). Other Pacific Islander-owned firms, which are not Native Hawaiian-, Guamanian- or Chamorran-, or Samoan-owned, accounted for 21.8 percent of the total firms (6,324).

Nearly 13 percent of all Native Hawaiian- and other Pacific Islander-owned firms had paid employees in 2002. These 3,693 businesses employed more than 29,000 people and generated revenues of $3.5 billion. The average receipts for these firms were $948,323.

Other highlights:

-- In 2002, nearly 21,000 Native Hawaiian- and other Pacific Islander-owned firms operated in health care and social assistance; other services (such as personal services, and repair and maintenance); retail trade; administrative and support and waste management and remediation services; professional, scientific and technical services; and construction.

-- Construction accounted for 21.2 percent of all Native Hawaiian- and other Pacific Islander-owned business revenue.

-- There were 727 Native Hawaiian- and other Pacific Islander- owned firms with receipts of $1 million or more. These firms accounted for 2.5 percent of the total number of Native Hawaiian- and other Pacific Islander-owned firms and 66.8 percent of their total receipts.

-- There were 28 Native Hawaiian- and other Pacific Islander- owned firms with 100 employees or more, generating more than $698 million in gross receipts (19.9 percent of the total revenue for Native Hawaiian- and other Pacific Islander-owned employer firms).

-- Two states -- Hawaii and California -- accounted for 62.3 percent ($2.7 billion) of all Native Hawaiian- and other Pacific Islander-owned business revenue.

-- States accounting for the highest number of Native Hawaiian- and other Pacific Islander-owned firms included Hawaii, California, New York, Florida and Texas.

-- Hawaii and California accounted for 64.9 percent (10,887) of all Native Hawaiian-owned firms.

-- California accounted for 46.1 percent (1,752) of all Guamanian- or Chamorran-owned firms.

-- Honolulu County, Hawaii, had the largest number of Native Hawaiian- and other Pacific Islander-owned firms in 2002 with 5,052. These businesses accounted for 17.5 percent of all Native Hawaiian- and other Pacific Islander-owned businesses and generated $1 billion in receipts.

-- For cities, Honolulu led the nation with 2,415 Native Hawaiian- and other Pacific Islander-owned firms with revenues of $615 million. New York was second in number of firms (2,341) with business revenue of $68 million.

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States With the Largest Number of Native Hawaiian- and Other Pacific Islander-Owned Firms: 2002

-- State: Hawaii; Firms (number): 8,359; Percent of total: 28.9; Receipts (million dollars): 1,436; Percent of total: 33.6

-- State: California; Firms (number): 7,074; Percent of total: 24.4; Receipts (million dollars): 1,230; Percent of total: 28.8

-- State: New York; Firms (number): 3,005; Percent of total: 10.4; Receipts (million dollars): 123; Percent of total: 2.9

-- State: Florida; Firms (number): 1,480; Percent of total: 5.1; Receipts (million dollars): 72; Percent of total: 1.7

-- State: Texas; Firms (number): 1,391; Percent of total: 4.8; Receipts (million dollars): 78; Percent of total: 1.8

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County With the Largest Number of Native Hawaiian- and Other Pacific Islander-Owned Firms: 2002

-- County: Honolulu County, Hawaii; Firms (number): 5,052; Receipts (million dollars): 1,023

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Cities With the Largest Number of Native Hawaiian- and Other Pacific Islander-Owned Firms: 2002

-- City: Honolulu, Hawaii; Firms (number): 2,415; Receipts (million dollars): 615

-- City: New York, N.Y.; Firms (number): 2,341; Receipts (million dollars): 68

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Native Hawaiian- and Other Pacific Islander-Ownership of Firms by Detailed Group: 2002

-- Group: Native Hawaiian- and other Pacific Islander-owned firms; Firms (number): 28,948; Percent of total: (X); Receipts (million dollars): 4,280; Percent of total: (X)

-- Group: Native Hawaiian; Firms (number): 16,776; Percent of total: 58.0; Receipts (million dollars): 2,844; Percent of total: 66.5

-- Group: Other Pacific Islander; Firms (number): 6,324; Percent of total: 21.8; Receipts (million dollars): 410; Percent of total: 9.6

-- Group: Guamanian or Chamorran; Firms (number): 3,797; Percent of total: 13.1; Receipts (million dollars): 676; Percent of total: 15.8

-- Group: Samoan; Firms (number): 2,204; Percent of total: 7.6; Receipts (million dollars): 299; Percent of total: 7.0

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The 2002 Survey of Business Owners (SBO) defines Native Hawaiian- and other Pacific Islander-owned businesses as firms in which Native Hawaiians; Samoans; Guamanians or Chamorrans; and other Pacific Islanders (who are not Native Hawaiians; Guamanians or Chamorrans; or Samoans) own 51 percent or more of the stock or equity of the business. Data by gender of ownership by all race groups and people of Hispanic or Latino origin will be issued in August.

Later this year, information on the characteristics of businesses and their owners will be released for the first time in more than a decade. Information will be provided on home- based, family-owned and franchised businesses as well as information about sources of capital. Information also will be provided about age, hours worked, educational attainment and veteran status of business owners.

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The SBO is part of the 2002 Economic Census and combines survey data from a sample of more than 2.4 million businesses with administrative data.

Data for 2002 are not directly comparable to previous survey years because of several significant changes to the survey methodology. See "Comparability of 2002 and 1997 SBO Data" at http://www.census.gov/econ/census02/text/sbo/ sbomethodology.htm#comparability.

The data collected in a sample survey are subject to sampling variability as well as nonsampling errors. Sources of nonsampling errors include errors of response, nonreporting and coverage.

-----

It is the policy of the U.S. Census Bureau that embargoed news releases and data sets may not appear in any public forum until stated time of release. Access to embargoed materials may be revoked for any person or organization failing to adhere to this policy.

EDITOR'S NOTE: The data can be accessed at
http://www.census.gov/prod/ec02/sb0200csnhpi.pdf

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(2) Pacitfic Business News report posted on their website Thursday June 29 (week of June 26)

http://www.bizjournals.com/pacific/stories/2006/06/26/daily42.html?from_rss=1

Hawaiian-owned businesses grow faster

Pacific Business News (Honolulu)

The number of U.S. businesses owned by Native Hawaiians and other Pacific Islanders is growing four times faster than the national average.

The Census Bureau says in a new report that the number of such enterprise grew 49.4 percent between 1997 and 2002 when the number of all businesses grew only 10.3 percent.

The 28,948 businesses generated $4.3 billion in revenues, up 3.4 percent. Native Hawaiians owned 58 percent of these businesses -- 17,776 -- while Guamanians and Chamorrans owned 13.1 percent and Samoans owned 7.6 percent, leaving 21.8 percent owned by other Pacific Islanders.

Hawaii had more of these firms even than California.

There were 8,359 in Hawaii, representing 28.9 percent of total companies and 33.6 percent of total receipts, $1.44 billion. Honolulu had 5,052 firms with $1 billion in receipts, more than any other city.

There were 7,074 in California, representing 24.4 percent of total companies and 28.8 percent of total receipts, $1.23 billion. Almost half of Guamanian/Chamorran-owned firms were in California.

Nearly 13 percent of all Native Hawaiian- and other Pacific Islander-owned firms had paid employees in 2002. These 3,693 businesses employed more than 29,000 people and generated revenues of $3.5 billion. The average receipts for these firms were $948,323. Construction accounted for more than 21 percent of the firms. There were 727 Native Hawaiian- and other Pacific Islander-owned firms with receipts of $1 million or more. These firms accounted for 2.5 percent of the total number and 66.8 percent of their total receipts.

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(3) Honolulu Advertiser report

http://honoluluadvertiser.com/apps/pbcs.dll/article?AID=/20060629/NEWS23/606290339/1001
The Honolulu Advertiser, Thursday, June 29, 2006

Study backs 'incredible' rise in artisans, crafters

By Gordon Y.K. Pang

Maile Meyer, a partner in a Hawaiian-owned book shop, said she has noticed a spike in merchandise made by businesses owned by Hawaiians.

"It's incredible, the rise in the number of artisans, crafters and producers who have come online in the last five years," said Meyer, of Native Books/Na Mea Hawai'i.

Meyer's experience is reflected in newly released statistics that show the ranks of Hawaiian- and Pacific Islander-owned businesses are increasing much more quickly than the national average.

The numbers come from the Survey of Business Owners: Native Hawaiian- and Other Pacific Islander-Owned Firms: 2002, a U.S. Census Bureau report released yesterday.

The new data give a detailed picture of the types of businesses owned by Hawaiians and Pacific Islanders and indicates their financial health. It further details information released last year that showed the rate of growth of businesses owned by Hawaiians and other Pacific Islanders increased from 1997 to 2002 by 49.4 percent, more than three times faster than the national average.

IN THE MAINSTREAM

The study was based on a survey of 2.5 million business owners nationwide in 2002.

George E. Newton, 86, the longtime owner of medical supply firm CR Newton Co. on South Beretania Street, said he is pleased to see fellow Hawaiians join his ranks.

Newton, a winner of the O'o Award given to Hawaiian business owners by the Native Hawaiian Chamber of Commerce, said increasing the ranks helps perpetuate the Hawaiian race and its culture.

And that's important to Newton. "We were born and raised in the Islands," he said.

Frank Brandt, chairman of PBR Hawaii, a land planning and landscape architecture firm, echoed Newton's thoughts about the importance of Hawaiian-owned businesses.

"As a host culture, we should be involved in the mainstream," Brandt said. "We need more Native Hawaiians and part Hawaiians in the business world."

Brandt, a founding member more than two decades ago of the Hawaiian Businessmen's Association — the predecessor to the Native Hawaiian Chamber of Commerce — said there is now a strong support system to help foster and nurture newer Hawaiian business owners.

Coupled with more educational opportunities, "more and more Hawaiians are succeeding very well."

At a news conference held in Honolulu by the Census Bureau, Native Hawaiian Chamber of Commerce President Warren Ah Sing expressed optimism at the numbers and what could be in store in the future.

"I can't wait for the next five-year study," he said. "Since 2002, there has been far more interest, lots more new startups and far more successes in Native Hawaiian entrepreneurship."

REVENUES NOT SO GREAT

Of 28,948 Hawaiian or other Pacific Islander-owned businesses listed in the study, healthcare and retail companies made up the largest shares. Administrative services, professional services and construction companies also were high on the list. Professional services include companies offering legal advice and representation, accounting, engineering and computer services.

While the number of businesses is growing rapidly, revenues have not been as robust.

The 28,948 Native Hawaiian- and other Pacific Islander-owned businesses across the United States generated about $4.3 billion in revenues in 2002, up 3.4 percent from 1997. That pales in comparison with the rest of the nation, which saw business receipts rise by 22 percent.

Valerie Strang, a survey statistician for the Economic Census Branch of the Census Bureau, said the discrepancy should be put into context. She noted that the overall receipts reflect all companies, including publicly traded companies, which tend to be larger. Publicly traded companies, because they are owned by a number of parties of multiple ethnicities, are not part of the Native Hawaiian and other Pacific Islander business survey.

Beyond that, "my theory is there are a lot of businesses where people are just coming into business that are just getting off the ground and haven't had a chance to grow yet," Strang said.

Strang said sole proprietors comprised 87 percent of the businesses owned by Hawaiians and Pacific Islanders, and one-employee businesses typically generate significantly less revenue than multiple-employee businesses.

Meyer said Strang's hypothesis makes sense, judging by the experience of Native Books/Na Mea.

"It's a natural progression; people have to start somewhere," she said. "I love it when artists tell me, 'I used to do this at nights, and now I do it on the weekends, and I'm thinking about quitting my job.' "

For purposes of the survey, Hawaiian- and other Pacific Islander businesses are defined as those firms in which Hawaiians, Samoans, Guamanians, Chamorrans and other Pacific Islanders own 51 percent or more of the stock, equity or interest.

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(4) Honolulu Star-Bulletin report

http://starbulletin.com/2006/06/29/business/story01.html
Honolulu Star-Bulletin, June 29, 2006

Native Hawaiian firms have billion-dollar clout
The Census releases new data detailing the size of the growing sector

By Nina Wu

Companies owned by native Hawaiians and Pacific Islanders on Oahu passed the $1 billion revenue mark in 2002, according to newly released data by the U.S. Census Bureau, which found 5,052 of those firms.

The survey data, released yesterday by the bureau, also revealed growing economic clout of the native businesses, tallied for the first time in a separate category.

In the five-year span between 1997 and 2002, the number of native Hawaiian- and Pacific Island-owned businesses grew 49.4 percent nationwide, more than triple the overall average of 10.3 percent.

** Pie chart breaking down the types of businesses
http://starbulletin.com/2006/06/29/business/arthawn.jpg

The 28,948 businesses nationwide generated about $4.3 billion in revenue, 3.4 percent higher than in 1997.

More than half -- or 58 percent -- were native Hawaiian-owned businesses.

The survey also counted the number of firms owned by Guamanians, Chamorrans, Samoans and other Pacific Islanders.

Of all the categories of business, construction seemed the most popular, accounting for 21.2 percent of all native Hawaiian- and other Pacific Islander-owned business revenue.

A significant number -- nearly 21,000 -- operated health care and social assistance-related businesses. Others fell into retail trade, professional and technical services, administrative support and waste management.

Being counted in their own report was significant for many native Hawaiian leaders and business owners, such as Maile Meyer, co-owner of Native Books/Na Mea Hawaii.

Haunani Apoliona, chairwoman of the Office of Hawaiian Affairs, applauded the U.S. Census for issuing separate estimates. Apoliona, who served on the bureau's race ethnic advisory council, said the data shined a light on the success and leadership role of native Hawaiian businesses.

The 2002 survey took data from a sample of more than 2.4 million businesses.

The bureau defined native Hawaiian- and Pacific Islander-owned business as those with a 51 percent or more ownership. In August, the bureau will issue data by gender of ownership by all race groups and people of Hispanic or Latino origin.

STATISTICS ON NATIVE HAWAIIAN BUSINESS

» Native Hawaiian firms with paid employees generated $3.5 billion and created 29,000 positions across the nation.

» A total of 727 native Hawaiian and Pacific Islander-owned firms had receipts of $1 million or more.

» Honolulu county tabulated 5,052 firms generating a total $1 billion in receipts.

» Hawaii and California accounted for 62.3 percent ($2.7 billion) of all native Hawaiian- and other Pacific Islander-owned business revenue.

» The state of Hawaii had the highest number of native Hawaiian/Pacific Islander owned firms (8,359), followed by California (7,074), New York (3,005), Florida (1,480) and Texas (1,391).

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(5) West Hawaii Today (Kona) [includes descriptions of specific local businesses]

http://www.westhawaiitoday.com/articles/2006/06/29/local/local04.txt
West Hawaii Today (Kona), Thursday, June 29, 2006

Native Hawaiian-owned businesses increasing nationwide

By Nancy Cook Lauer
Stephens Capitol Bureau

HONOLULU -- For two longtime government employees turned entrepreneurs, it all started with Hokulia.

The legal controversy over that Kealakekua development convinced Dawn Chang, former state deputy attorney general on the state's side of the lawsuits, and Lani Maa Lapilio, former legal counsel for the Office of Hawaiian Affairs Native Hawaiian Historic Preservation Council, that there was a private-sector demand for land use lawyers with a background in Native Hawaiian culture.

Five years ago, Lapilio and Chang left the security of their government jobs and started Kuiwalu, a company that consults with developers, engineers and agencies to build community support for development projects and help them wind their way through the state's complicated historic preservation process. Kuiwalu is Hawaiian for "to connect the eight islands."

Clients include OHA, Outrigger Hotels, the Kahoolawe Island Reserve Commission, Sandwich Isle Communications and SSFM Engineering, which is designing a new Hawaiian language building at the University of Hawaii at Hilo.

"We're both Hawaiian, both native," said the Keaukaha-born Lapilio. "That's one of the attractive things about our company. We are familiar with Hawaiian values because we practice those values, and we can work with other Hawaiians. That seems to be an asset."

The Honolulu-based Kuiwalu is one in a surge of new businesses owned by Native Hawaiians and other Pacific Islanders. Nationally, businesses owned by those groups grew at three times the rate of other business, the U.S. Census reported Wednesday. The 28,948 businesses generated about $4.3 billion in revenues.

About 58 percent of the businesses were Native Hawaiian-owned, while Guamania- or Chamorran-owned businesses accounted for 13 percent and Samoan-owned firms made up 7.6 percent.

As would be expected, Hawaii had the most Native Hawaiian- and other Pacific Islander-owned businesses, with 28.9 percent, followed by California, with 24.4 percent, New York, with 10.4 percent, Florida, with 5.1 percent and Texas, with 4.8 percent.

Retailing was the profession of choice, with 12.4 percent of Native Hawaiian- and other Pacific Islander-owned businesses in that category. Many are small, such as the Hilo-based Na Makua, a line of casual Hawaiian wear by father and son designers, Nelson and Kainoa Makua. Others are much larger, and in all, account for about 15 percent of the money made by Native Hawaiian- and Pacific Islander-owned firms.

Administrative service companies accounted for 11.6 percent of all businesses, followed by professional services, with 11.2 percent and construction with 9.9 percent. Construction, however, was the biggest money-maker, accounting for 21.2 percent of all sales.

"Well, the secret is finally out. The Hawaiian people are not just an indigenous people, they are also industrious, creative, motivated and skillful -- key ingredients for survival and success in ancient and modern Hawaii," said Warren Asing, president of the Native Hawaiian Chamber of Commerce. "The Hawaiians as a people can stand proud today of the accomplishments of their kupuna from which these seeds were sown, their own accomplishments this very moment speaks volumes and their future is without restraint."

OHA keeps a directory of Hawaiian-owned businesses, provides business counseling and administers federally backed loans to Native Hawaiians. Between 1987 and 2004, OHA provided 368 business loans totaling $16 million and creating 1,054 jobs, while providing services to 4,300 Native Hawaiians who owned businesses or were interested in starting one, according to OHA's annual report.

Being politically well-connected doesn't hurt either. Sandwich Isles Communications, which holds an exclusive agreement with the Department of Hawaiian Home Lands to provide telephone service to homes on 200,000 DHHL-managed acres on six islands, is headed by Al Hee, brother of former OHA Chairman and current Sen. Clayton Hee, D-Kahuku, Laie, Kaaawa, Kaneohe.

The company's fiber-optic network project is subsidized with $400 million in loans from the U.S. Department of Agriculture Rural Utilities Services and a Universal Service Fund subsidy -- collected from a $2-per-month telephone surcharge -- of $13,743 per customer. Sandwich Isles representatives did not return telephone calls Wednesday.

Na Makua and Kuiwalu didn't take advantage of help from OHA, although Lapilio does list her former employer as a client. She said her company is also working on getting certified to qualify for military projects.

"It was a lot of hard work," Lapilio said, "but we were fortunate that we were able to get up and do it on our own."


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