Entrepreneurship
Entrepreneurship and business creation is fundamental to a healthy economy. Companies less than five years old create an average of 1.5 million new jobs for Americans each year.† Immigrants in particular play an important role in creating jobs as they are more likely to start a new business than the rest of the population. Despite this, the United States lacks a startup visa to welcome immigrant entrepreneurs with a proven idea and solid investment. This results in many business owners struggling to stay—at a cost to our economy and its workers.
† Jason Wiens and Chris Jackson, “The Importance of Young Firms for Economic Growth,” September 13, 2015. Available online.
Mohamed Al-Hamdani
In 1990, when Mohamed Al-Hamdani was eight, he and his family fled Iraq. Al-Hamdani’s father was part of the uprisings against Saddam Hussein, and the country was no longer safe for them. After two years in a Saudi Arabian refugee camp, they were resettled in Dayton, Ohio. It wasn’t easy. Read More
New Report Shows Immigrants in Montgomery County Paid Over $219 Million in Taxes and Held Over $562 Million in Spending Power in 2019
DAYTON, OH, MARCH 15, 2022 – A new report, New Americans in Montgomery and the City of Dayton, by New American Economy — now the American Immigration Council — in partnership with the City of Dayton Human Relations Council (HRC), underscores… Read More
Jordanian Immigrant Establishes Printing Company in New Jersey
Alia SuqiOwner, Nextwave Web Growing up in Jordan as one of 14 siblings, Alia Suqi always knew she’d have to work hard to find her own way. Her parents were supportive, but there weren’t many opportunities for a young woman in Jordan — so after finishing high school in… Read More
Italian Immigrant Becomes Owner of Auto Body Shop in New Jersey
Mario TommolilloOwner, Mario’s Classic Auto Body of Paterson On the morning that Mario Tommolillo arrived in the United States from Italy, his parents woke him up at 5 a.m. to see the Statue of Liberty. It was 1967, and the family entered New York harbor on the SS United… Read More
New Report Shows Immigrants in the City of Los Angeles Paid nearly $15 Billion in Taxes and Held More Than $38 Billion in Spending Power
Los Angeles, CA – A new report released today by New American Economy in partnership with the City of Los Angeles Mayor’s Office of Immigrant Affairs and the Coalition for Humane Immigrant Rights (CHIRLA) underscores the crucial role immigrants in Los… Read More
New research shows immigrants across Texas are driving population growth and helping metros meet their rising labor needs
AUSTIN, TX – New research released today by Texans for Economic Growth, a statewide 110-member business coalition powered by New American Economy (NAE), underscores the critical role immigrants across Texas play in population growth, business creation, and reviving the manufacturing sector. A series of seven reports found that… Read More
Mexican Immigrant Starts Her Own Remediation Business in Reno
Teresa SidleOwner, All Eagle LLC When Teresa Sidle came to Reno from Mexico in 1984 as a shy teenager, she never could have imagined she’d be the owner of a company with 30 employees. Even more surprising: her company specializing in asbestos abatement and mold remediation is a… Read More
Mexican DREAMer Finds Success Starting Catering Business in Reno
Gustavo VelascoOwner, GUsTO Catering & Meals See Gustavo highlighted in the Reno Gazette Journal Gustavo Velasco had just graduated from Reed High School when a family friend asked him what he wanted to study in college. As a recent immigrant who’d moved to Reno from Mexico with his… Read More
Ethiopian Immigrant Couple Start Home-Care Business in Minnesota
Abraham & Aster Giorgis DaluOwners of A&A Reliable Home Health Care In the 1970s, Abe and Aster Giorgis Dalu attended the same high school in Ethiopia — then, a decade later, they reunited by chance in the United States, where they had both settled. Now married, the pair run A&A… Read More
South Asian Couple with Refugee Roots Starts Elder Care Service Business in Minnesota
Souk & Youa HerOwners of Elder Care Day Services Souk and Youa Her are high-school sweethearts who bonded over their families’ shared background as Hmong refugees: Souk was born in a refugee camp in Thailand, while Youa was born in America soon after her parents left a Laotian refugee… Read More
Immigrants Create American Jobs
How many jobs do immigrant entrepreneurs create? The data shows that firms owned by immigrants provide millions of jobs for U.S. workers and generate billions of dollars in annual income. With new business formation slowing in the United States, immigrant entrepreneurs have a critical role in many parts of the country, creating jobs for all Americans.
What percent of businesses are owned by immigrants?
The act of moving to another country is inherently courageous and risky. So, it comes as no surprise that immigrants tend to be more entrepreneurial than the rest of the population. In 2019, immigrant entrepreneurs made up 21.7 percent of all business owners in the United States, despite making up just over 13.6 percent of the population and 17.1 percent of the U.S. labor force.
Where Immigrants Are Most Entrepreneurial, 2019
Immigrants and the Recovery from the Great Recession
Foreign-born entrepreneurs and the jobs they created were instrumental in the recovery from the Great Recession. Between 2007 and 2011, immigrant entrepreneurs founded a large share of new businesses across the country and in several key states.
Share of New Businesses Founded by Immigrants in Select States, 2007-2011
Which Industries Are Immigrant Businesses Most Prevalent?
As important as the frequency with which immigrants start businesses is the diversity of fields in which they start them. Immigrants start more than 25 percent of all businesses in seven of the eight sectors that the U.S. Bureau of Labor Statistics expects to grow the fastest over the next decade. They also play a large role in founding both Main Street businesses1 and high-tech firms.2
Sources:
1 David Dyssegaard Kallick, “Bringing Vitality to Main Street: How Immigrant Small Businesses Help Local Economies Grow,” New York: Fiscal Policy Institute and Americas Society/Council of the Americas, 2015. Available online.
2 Vivek Wadhwa et al., “America’s New Immigrant Entrepreneurs: Part I,” SSRN Scholarly Paper (Rochester, NY: Social Science Research Network, 2007). Available online.
Share of Businesses Started by Immigrant Entrepreneurs in Seven Key Sectors, 2007-2011
Immigrants Found both Main Street Businesses and High-Tech Firms
Business Ownership Among Immigrant Groups
Looking at specific ethnic and national origin groups within the immigrant population, we find that many exhibit entrepreneurship rates higher than the native-born. At right we highlight the particular contributions of Middle Eastern business owners in Detroit, a group frequently credited with helping to spur the city’s recent economic comeback.
Sources:
3 Steve Tobocman, “Guide to Immigrant Economic Development,” Welcoming America, accessed July 5, 2016. Available online.
4 New American Economy, "Reason for Reform: Entrepreneurship," October 2016. Available online.
Entrepreneurship Rates for Immigrant Subgroups, 2014
Immigrants and the Fortune 500
Consistent with past NAE research, a significant number of firms on the most recent Fortune 500 list were founded by immigrants or their children. These companies make enormous contributions to both the U.S. and global economy. They also live on beyond their founders, generating jobs and revenue long after their visionaries retire or move on.
Visa Obstacles
Currently, there is no visa for those who want to come to the United States, start a company, and create jobs for U.S. workers. To access a visa, many immigrant entrepreneurs choose to sell a majority stake in their company and then apply for a visa as a high-skilled worker rather than as the owner of the firm. Our broken H-1B visa system, however, means that many entrepreneurs cannot get a visa before the cap is exhausted each year. In 2016, the White House proposed a rule that would make it easier for entrepreneurs to remain in the country, but it is clear a more permanent, legislative fix is needed.5
Sources:
5 Issie Lapowski, “White House Proposes a New Immigration Rule for Entrepreneurs,” WIRED, accessed December 14, 2016. Available online.
6“USCIS Completes the H-1B Cap Random Selection Process for FY 2016,” USCIS, accessed December 14, 2016. Available online.
Low-Skilled Entrepreneurship
Immigrant entrepreneurs are hardly a monolithic group. While much of the attention is focused on high-skilled foreign-born entrepreneurs that drive innovation in Silicon Valley, immigrant entrepreneurs with humbler backgrounds continue to play critical roles in the U.S. economy. Founding retail shops, restaurants, and personal service businesses, these immigrant entrepreneurs help towns and cities across the United States stay vibrant. In sum, the over 2.1 million immigrant entrepreneurs with less than a college degree have a significant economic impact, creating billions of dollars in economic activity and providing jobs to thousands of Americans.
Top Industries Among Immigrant Entrepreneurs with Less than a Bachelor’s Degree, 2015
Entrepreneurship Rates of Workers in Various Demographic Groups, 2015
Business Income of Less-Skilled Immigrant Entrepreneurs, 2015
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Make a direct impact on the lives of immigrants.
