BOSS Survey: From Bad to Even Worse

Hawaiʻi is often ranked as one of the worst states in the nation to operate a company. In fact, in July, CNBC dropped the state from 49th in the nation last year to dead last this year in its annual ranking of America’s Top States for Business.

In the latest version of the BOSS Survey of local business owners and executives, we asked: Compared to five years ago, is Hawaiʻi a better or worse place to run a business?

The results suggest many business leaders believe the state’s business climate has deteriorated. A clear majority of business leaders (57%) said Hawaiʻi is now a worse place to do business than five years ago.

Not everyone shared that view: One in five business leaders thought Hawaiʻi has become a better place to do business. Here are the full numbers.

Methodology

Hawaii Business Magazine contracted Anthology FINN Partners to conduct two online surveys: the BOSS Survey and the 808 Poll.

For the BOSS, 414 random interviews of business owners and executives across the Hawaiian Islands were conducted from April 30, 2026, to July 21, 2026. The data was weighted to reflect the proper proportions of each company segment (very small, small, medium and large) within the state as reported by the state Department of Labor. A sample of this size has a margin of error of +/- 4.82 percentage points with a 95% level of confidence.

Data collection for the 808 Poll of the general public began May 28 and ended June 21. A total of 401 completed surveys were collected, resulting in a margin of error for the overall sample of +/- 4.89 at the 95% level of confidence. Respondents were screened to ensure they were 18 years of age or older and full-time residents of the state.

Anthology says it uses AI tools to enhance efficiency; however, all final insights and conclusions are reviewed and determined by human researchers. All tools used are enterprise AI models that do not retain or train on any data, ensuring confidentiality. AI serves as a tool in the process, but human expertise remains the primary driver of analysis.

This Qualifies as Good News: Less Pessimism Than Before

For nearly three decades, the BOSS Optimism Index has measured Hawaiʻi’s business leaders’ perception of what lies ahead for the economy.

The index is based on BOSS Survey respondents’ answers to the question: How will the local economy do in the coming year, get better, worse or stay the same? The answers matter because confidence encourages businesses to expand and hire, while pessimism often leads to cost cutting and hiring freezes. Here is the latest change in the index along with the results over the past decade.

Local Economy Forecast

In the 808 Poll of 401 members of the general public statewide, we asked the same question: Will the local economy get better, worse or stay the same in the coming year? The public was even gloomier about Hawaiʻi’s economy than business leaders. We compare the numbers.

Pessimism has real consequences among the public as well as among business leaders. If ordinary people worry about the economy, they are less likely to spend money that helps drive the local economy.

Spending Plans

Business owners and executives were asked which statement best describes their company’s spending plans for the coming year.

Hawaiʻi’s Biggest Problem

Respondents in both surveys were asked: What is the single biggest issue facing the state? The cost of living was cited by more than half of the people in each survey. Housing costs ranked second in both surveys.

What Else Worries You?

After identifying the No. 1 problem in people’s minds, we widened the lens. Respondents in both surveys were asked: Which economic factors are most responsible for your outlook for Hawaiʻi’s economy over the next 12 months? Respondents could choose multiple factors.

The responses reveal some striking divides between business leaders and the general public.

Members of the public were far more concerned about the cost of living, housing affordability and lagging wages.

Among the general public, it was renters, Millennials and Gen Zers who were significantly more likely to identify housing costs as among the biggest issues facing Hawaiʻi.

Tourism, the main driver of the local economy, was cited by many people in both surveys, especially on the Neighbor Islands, where its economic importance is proportionally even greater than on Oʻahu. On Oʻahu, tourism was a concern of 21% of business leaders and 16% of the general public. On the Neighbor Islands, those numbers rose to 30% and 22%.

Has Financial Success Gotten Harder?

For generations, Americans assumed their children would be better off financially than they were. Today, that optimism has faded for many families.

To test that sentiment, we asked respondents in each survey: Do you believe people growing up in Hawaiʻi today have a better or worse chance of financial success than the Baby Boom generation (born 1946-1964)?

Among business leaders, 71% thought younger people’s chances for success were somewhat worse or much worse. The percentage was even higher among the general public: 75%.

Which of Your Costs Have Gone Up

Business owners and executives were asked which business costs have increased significantly over the past year. They could choose more than one. Most business leaders said two or more of their business costs having risen significantly.

It’s Rough Out There. What Are You Planning to Do About It?

Business owners and executives were asked: Which are the actions that your company is most likely to take in the next 12 months? Only 24% planned no major changes. Most planned two or more of these changes.

Hiring or Firing and Why?

More than half of the companies surveyed said they are not hiring, though only a small number (4%) are actually cutting staff. Among companies that are hiring, most are struggling to fill open positions.