State tech transition stalls Hawaii business approvals

Sep 12, 2026

Hawaii was just ranked the worst state in the country to do business, and a botched state computer switch is making it worse for anyone trying to start or run a company there.

  • CNBC put Hawaii dead last, 50th, on its list of best states for business.
  • The state agency that handles basic business paperwork moved to a new Salesforce-based system, and it is full of bugs and delays.
  • Filings that should clear in a week or two are taking 12 weeks, leaving businesses unable to open bank accounts or hire.
  • The governor's office has asked Salesforce for help fixing the problems.
  • Ohio climbed from around 30th to first on the same list, proof the ranking can move fast.

Outlook: With an election year underway, expect pressure on candidates to fix the permit backlog and lift Hawaii off the bottom of the list.

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