Entrepreneurs get no aloha

Advertiser Staff

A national survey ranked Hawai'i 49th among the 50 states and the District of Columbia for its environment for entrepreneurs, largely because of high tax rates and other business costs.

The annual Small Business Survival Index released today by the Small Business Survival Committee in Washington said only the District of Columbia and Rhode Island ranked lower.

The most welcoming states for entrepreneurs, according to the index, are Nevada, South Dakota, Washington, Wyoming and Florida.

Raymond J. Keating, the Small Business Survival Committee's chief economist, looked at such factors as taxes on personal income, capital gains, corporate income, property, sales, inheritance, unemployment, health insurance, Internet access, gas, the cost of electricity and workers' compensation, crime rates, right-to-work status and the state minimum wage.

Cruise company stops dividend

American Classic Voyages, parent company of Hawai'i's two locally based cruise ships, said it would suspend its dividend because of a slowdown in the economy and stiff competition.

The company that operates the Independence and the Patriot previously paid a quarterly cash distribution of 87.5 cents per unit to holders of trust preferred securities. Those payments will be suspended until May 15, 2002.

Last month, American Classic said it would cut 70 full-time positions from its shore-based staff of 470.