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.
Chicago Business Leader, Grandson of Italian Immigrant, Advocates for Restaurant Workers Across Illinois
Sam Toia, a third-generation Italian-American, whose grandfather emigrated from Sicily in the 1920’s, is deeply embedded in Chicago’s culinary world. As President & CEO of the Illinois Restaurant Association (IRA), he advocates on behalf of the industry and its workers. In the state of Illinois alone, there are more… Read More
Rwandan Refugee Expands Immigrant-Focused Newspaper into Buffalo-Based Non-Profit
Shortly after Rwandan refugee Rubens Mukunzi began publishing a newspaper about immigrant and refugee life, he got a visit from the Buffalo Public Schools Superintendent Kriner Cash. “He was very excited to have the newspaper, Karibu News, as a voice for refugees and immigrants in Buffalo Public Schools,”… Read More
Argentinian Immigrant Credits Boston with Enabling Business Success
Jonathan Thon, an Argentine native, first came to the Boston area in 2008 to complete a Harvard Medical School postdoc, and stayed on to become an Assistant Professor there. He knew that platelets, the cells that promote clotting, had enormous commercial and medical potential, and so in 2014, Thon… Read More
New York State Assemblyman Reflects on Immigrant Legacy in New York City
When Ron Kim’s family immigrated to the United States from South Korea in 1987, his parents chose to settle in New York City because they knew it had a strong immigrant community. Kim, who was seven years old at the time, explains that this community provided the family with… Read More
Steve Rao’s August 2018 Interview with NAE Executive Director Jeremy Robbins for “Leaders and Legends”
Listen to the interview below from Monday, August 20. https://www.americanimmigrationcouncil.org/wp-content/uploads/2018/08/Leaders-and-Legends-Steve-Rao-Jeremy-Robbins-Interview.mp3… Read More
Missoulian: Report: Immigrants in the Missoula region generate over $26M in tax revenue each year
Although immigrants make up only 2.3 percent of the total population of Missoula and four surrounding counties, those 4,654 people contributed $219.9 million to the goods produced and services provided in the region, $19.3 million in federal taxes and $7 million in state and local taxes in 2016 alone. That… Read More
The Dallas Morning News: ‘How do we protect them?’ Dallas leaders look to help immigrants and the economy
We could mess up the so-called Texas miracle. Cutting off immigration, for instance, “would make it impossible” for the state to keep growing jobs at roughly double the national rate, Dallas Fed economist Pia Orrenius said last week. Keeping out immigrants would also take us out of the competition to attract top… Read More
Immigrants Were Responsible for One-Quarter of Population Growth in Fort Wayne and Northeast Indiana between 2011 and 2016
FORT WAYNE, IN – Immigrants in Fort Wayne and Northeast Indiana accounted for 24.7 percent of overall population growth in the region between 2011 and 2016 according to a new report by New American Economy (NAE), in partnership with Welcoming Fort Wayne, the Northeast Indiana Regional Partnership, and the… Read More
Foreign-Born Residents in Alexandria Paid $365 Million in Taxes in 2016
ALEXANDRIA, VA – Immigrants in the City of Alexandria paid $364.6 million in taxes in 2016, including $262.4 million in federal taxes and $102.2 million in state and local taxes, according to a new report by New American Economy (NAE), in partnership with the City of Alexandria Workforce… Read More
Economist Escapes Ethiopia to Start Own Business in the U.S.
In his native Ethiopia, where he’d earned an economics degree and held a government job calculating GDP statistics, Mahfuz Mummed faced a quandary. He’d given eight years of loyal service when his bosses began pressuring his department to falsify data. Mummed watched as colleagues who protested faced violent reprisals. “I… 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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