And this market segment is growing. It is an engine of job creation, generating 80,000 new jobs every year. In Hawaii, 92.3 percent of all firms are small businesses, and account for 94 percent of the work force. It is an important segment for the state's economy and many, including Bank of Hawaii, think it will be a major impetus behind an economic turnaround. There is tremendous change taking place in the small business sector.
Service businesses are the largest and fastest growing segment.
Many are home-based. Small businesses are more entrepreneurial, flexible and innovative, and are able to move quickly to respond to emerging business trends. It is a fluid and dynamic market, with tremendous growth potential. Part of this growth has been spurred by the downsizing and outsourcing of corporate America. The time for small business has never been better.