Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Business and Economic Development, to which was referred S.B. No. 2202 entitled:

begs leave to report as follows:

The purpose of this measure is to make an appropriation for the Hawaii Small Business Development Center (SBDC) Network to further its work of providing assistance to small businesses through management-force training.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism, and the Hawaii Small Business Development Center Network.

Economic development is sustainable when it increases productivity and has residual benefits. In Hawaii, this means increasing human capital productivity, which is composed of skills training through workforce development and conceptual training through management-force development. Hawaii's business sector has received an "F" for business vitality in the State from the Corporation for Enterprise Development for eleven out of the last twelve years. Your Committee finds that management-force training positively impacts small businesses and will improve these rankings. The Hawaii SBDC Network is the only one in the State with a comprehensive program for small business owners and prospective owners, and the only one delivering a management-force training program statewide; thus, an appropriation of funds will allow Hawaii SBDC Network to continue to provide assistance to small businesses in the State.

As affirmed by the record of votes of the members of your Committee on Business and Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2202 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.