Nonprofit business groups merge for economic push
By Katherine Nichols
Advertiser Staff Writer
Two of the state's top nonprofit business organizations are planning to merge in a move that could spark renewed efforts to improve and diversify Hawai'i's economy.
The partnering would bring together the Hawaii Business Roundtable, a 14-year-old organization comprising chief executives from dozens of the largest businesses in the Islands, and Enterprise Honolulu, a private-sector economic development organization dedicated to attracting and retaining businesses.
Mike Fitzgerald, president and chief executive of Enterprise Honolulu, said the boards of both groups have agreed to the concept of the merger. Decisions on such issues as corporate structure, governance, and a name for the combined group are being worked out.
"The belief now is that probably both of the entities would have some identity under the umbrella that would be put together, but it will be a combined organization," said Fitzgerald, who said he will lead the new group.
The move to unify two of the state's myriad business groups into a larger, more influential entity aimed at revitalizing the economy of O'ahu is among the first major efforts of Enterprise Honolulu under Fitzgerald.
It comes at a crucial time for the state's fragile economy and could mark the first step toward bringing together an often-fractured business community to provide a coordinated statewide economic development agenda.
"Mostly, we're bringing all the sectors together," Fitzgerald said in his downtown office overlooking Aloha Tower. "(Hawaii Business Roundtable) pretty much worked on policy issues; we're pretty much working on nitty-gritty economic development, strategies and tactics, and there will be some advantage to bringing these together."
Fitzgerald said that the defining strategies and logistics, as well finding joint quarters for the new group, probably would not take place before January.
"It's an exciting opportunity because it really enables both organizations to enhance their effectiveness," said Roger Wall, chairman of Enterprise Honolulu's board of directors.
Carl Takamura, executive director of the Hawaii Business Roundtable, said linking with Enterprise Honolulu makes sense because the mission and goals of each are compatible.
Both organizations are committed to making improvements in training of the work force and diversifying the economy to give top students a reason to stay in Hawai'i when choosing their careers.
Takamura also said a significant portion of Enterprise Honolulu's $2.3 million annual budget has come from Hawaii Business Roundtable members.
Takamura said Thursday that additional groups or agencies might officially join the combined group later, noting that it would be the next logical step once the current partnership is solidified and running smoothly.
But Fitzgerald said yesterday he believes that it's important for some organizations such as the Hawaii Chamber of Commerce to retain their own identity and that future collaborations could come in forms other than mergers.
Fitzgerald, hired last November under a three-year contract, ended several leaderless years for Enterprise Honolulu, formerly called the Oahu Economic Development Board, which some observers said was handicapped in its mission of promoting economic growth and diversification on O'ahu.
At the time, some observers said they hoped Fitzgerald, who has 30 years' experience in business development, would bring unity to economic development efforts in Honolulu.
Fitzgerald estimated he has met with 500 leaders in business, education, organized labor and government to try to develop an understanding of the issues in the Islands and gauge which direction to take Enterprise Honolulu.
"I've been on a real steep learning curve," he said. "This is an enormous responsibility.... There are lots of people whose livelihoods and dreams are dependent upon this working. I'm cognizant of that every waking moment."
Fitzgerald said Enterprise Honolulu's strategic plan includes becoming an organization recognized as the single contact for providing accurate and timely information to potential investors and polishing O'ahu's business image locally and nationally.
It also is focusing on creating high-paying jobs for people in Hawai'i, helping retain, expand and diversify the state's existing businesses, and assisting aspiring entrepreneurs with business plans or financing.
Fitzgerald said that an estimated 70 percent to 80 percent of all new jobs and wealth will come out of businesses already in the Islands — a formula that works in most Mainland cities.
Another part of the group's five-year plan is building relationships with "site selectors," those who work with corporations identifying new locations for expansion.
Approximately 30 percent to 40 percent of all business expansions are done this way, yet it's a process in which Hawai'i has never before participated, he said. Targeted efforts like this get O'ahu on the radar and into negotiations, he said.
But Fitzgerald also said that in Enterprise Honolulu's quest for change and development, sensitivity to local culture and the environment will be paramount.
In the next 10 years, he said, "there's the opportunity to create, literally, a world model of sustainable development here if it's done right."
