HAWAI`I SMALL BUSINESS DEVELOPMENT CENTER NETWORK

1998 ANNUAL REPORT - KAUA`I CENTER REPORT
[Case Study]

Below: Randy Gingras
Bottom: Clara Oligo

At the northern end of the Hawai`i island chain, Kaua`i is the smallest of the four major Hawaiian islands, having a total of 552 square miles. Also known as the "Garden Isle," Kaua`i has a population of 56,000 with approximately 1,500 businesses. Center Director Randy Gingras and his secretary, Clara Oligo, are responsible for the Hawai`i SBDC Network office located on the campus of the Kaua`i Community College near Lihu`e, about midpoint on the road that skirts two-thirds of the coastline of this nearly circular island.

The Kaua`i Center has shown a continuous and consistent pattern of growth over the last five years and has more than doubled the counseling hours provided to clients during this period. Virtually all of these clients were referred by "word of mouth" and by other organizations such as banks. Part of this success can be credited to the Kaua`i Center's involvement in the community's economic development to promote growth for small businesses.

To provide more in-depth assistance to clients, Gingras has capitalized on the available resources on the island by creating beneficial alliances with the SB A, the Bank of Hawaii, First Hawaiian Bank, Kaua`i Community College's Continuing Education program, and other service organizations such as the Kaua`i Business Assistance Corporation.

Gingras identified the opportunity and initiated a strategic partnership between the Hawai`i SBDC Network and the Hawai`i Community Loan Fund (HCLF), which is an agency organized to support community based economic development. This relationship has been formalized in a Memorandum of Understanding. HCLF brings banks and community organizations together to help finance businesses and community projects that may not qualify for a bank loan.

Ninety-five percent of the Center's consulting hours were with clients seen more than once, which is an indication of effective counseling. Fifty-five percent of the clients were existing businesses, and of the remaining clients that were not in business, 60% were able to begin businesses by the end of the year. The high level of referrals show that the clients recognized the value of the services provided. The alliances with community organizations and the emphasis on quality delivery of service have permitted the Kaua`i Center to exceed all goals set for client services in 1998.

[ Return to Top ]

[ Return to 1998 Annual Report Main Page ]

KAUA`I CASE STUDY
Haupu Growers

After McBryde Sugar Company and Kekaha Sugar Company closed their operation on Kaua`i, Dennis Okihara, a former sugar company employee, found himself looking for a new source of income. For 14 years, he had a part-time nursery operation, which concentrated in seasonal poinsettias. With this background, Okihara saw an opportunity to start his own business.

Okihara and three other displaced sugar workers formed Haupu Growers. While employed by the plantations, each of them had different areas of expertise, which they used to establish their first crop, which was papaya. After Okihara attended a Hawai`i SBDC Network information meeting in 1996 about the Rural Economic Transition Assistance - Hawai`i Program (RETA-H), he decided to pursue the production of asparagus and apply for a RETA-H grant. RETA-H is a grant program administered by the Hawai`i SBDC Network. Its purpose is to help displaced sugar workers while promoting the diversification of agriculture in Hawai`i.

Prior to Haupu Growers being awarded RETA-H funds for off-season asparagus, Randy Gingras, Center Director for Kaua`i, worked closely with Okihara to develop all of the necessary financial projections, accounting systems, and marketing concepts for the newly developing business.

Okihara attended a Marketing Masters Workshop at the Kaua`i Community College held by the Hawai`i SBDC Network. The workshop presented several guest instructors from the business community who provided an array of information on various business services. This opened Okihara up to the amount of resources that were available for small businesses.

Halfway through the asparagus project, Haupu Growers branched out into coffee production. Okihara received on-going financial management assistance from Gingras for this project, as well. Then, Gingras helped Haupu Growers to receive an economic development loan for $100,000 from the Hawai`i Community Loan Fund (HCLF). This loan provided Haupu Growers with the ability to further develop its plowing-for-hire operational and build its coffee growing operation. HCLF, a statewide organization which brings banks and community organizations together to help finance businesses and community projects that may not qualify for a bank loan, has formed a strategic partnership with the Hawai`i SBDC Network. Haupu Growers was HCLF's first loan recipient.

Haupu Growers started with 20 acres of crops and now has nearly 300 acres: approximately 150 acres of premium coffee, 40 acres of asparagus, 20 acres of papaya, and the balance in seed corn. Most of their land is located between the former McBryde Sugar Company factory at Koloa and the by-pass road area at Po`ipu. At peak production, Haupu Growers employs 30 employees. The number of people employed will only increase as the crops expand.

Chef Sam Choy featured Haupu Growers' asparagus fields in Koloa and used their asparagus in his cooking show. This gained statewide attention.

Okihara's decision to become a full-time entrepreneur with the help of the Hawai`i SBDC Network now seems to have been a good choice. Says Okihara, "The quality of service that you receive from the Hawai`i SBDC Network can't be beat. What makes it even better is that it's free!"

[ Return to Top ]

[ Return to 1998 Annual Report Main Page ]

If you find any problems with this site please email: [email protected]