Starting or growing a business in Hawaii has never been easy.
Now, a new national ranking says it's harder here than anywhere else.
For the second straight year, CNBC ranked Hawaii 50th in its annual America's Top States for Business report, placing the islands last among all 50 states.
The biggest reason is no surprise to local business owners.
Everything costs more.
From commercial rent and electricity to shipping and labor, businesses in Hawaii face some of the highest operating costs in the country. Those expenses make it harder to expand, hire workers, and compete with companies on the mainland.
CNBC also pointed to Hawaii's regulatory environment as a factor that can make it more difficult to do business.
The ranking isn't all bad news. Hawaii continues to score well for its quality of life, a major draw for residents, visitors, and businesses looking to attract talent. But when companies decide where to invest or open new locations, affordability and the ease of doing business often carry more weight.
The report is closely watched by corporate executives and site selection consultants because it helps shape where businesses choose to invest.
For Hawaii, finishing last for a second consecutive year sends a clear message: while the islands remain one of the best places to live, they're still one of the toughest places to run a business.