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.
Ethiopian Immigrant Fulfills Her Dream of Owning a Business
Rhoda Worku was a college student in Ethiopia when civil war broke out. Her father, a high-ranking member of the government, was executed and her mother was imprisoned. Eventually, Worku’s mother was released but life barely improved. “We didn’t have anything,” Worku says. “The government took everything from us.” In… Read More
Bolivian Immigrant Proud to Serve His New Country’s Air Force
Growing up in La Paz, Bolivia, Fernando Torrez was fascinated with American super hero cartoons. In 1996, when he was 12, his parents brought him and his older sister to Colorado in search of the American dream. There, he encountered real-life American heroes: cadets at the U.S. Air Force Academy. Read More
More Than 100 Leading Economists Oppose Department of Homeland Security Move to Rescind International Entrepreneur Rule
New York, NY — As the Trump Administration moves to dismantle a program known as the International Entrepreneur Rule (IER), more than 100 leading economists have issued a statement in opposition to the decision, citing new data about the program’s potential economic impact. Published in 2017, the IER is… Read More
New American Economy Statement on Failed Immigration Legislation in the House of Representatives
NEW YORK – “Today proves it’ll take votes from both sides of the aisle for this Congress to get to yes on an immigration deal,” said John Feinblatt, President of New American Economy. “The right step for the House now is a successful discharge petition that advances a bipartisan solution… Read More
Mexican Immigrant Builds Automotive Business from the Group Up
Joaquin Cordero met his wife while working in Cancun, and moved with her in 1998 to Boise, her hometown. He had earned a bachelor’s degree in mechanical engineering in Mexico, but did not have U.S. licensure and spoke only Spanish. So he went to work as an auto technician. “When… Read More
Foreign-Born Residents Paid $430 Million in Taxes in Louisville in 2016
LOUISVILLE, KY – Immigrants in the Louisville metro area paid $430 million in taxes in 2016, including $282 million in federal taxes and $148 million in state and local taxes, according to a new report by New American Economy (NAE), released in partnership with the Louisville Mayor’s Office for… Read More
First-Generation Mexican-American Serves His Community Through His Business
At age 10, Victor Puga left his native Mexico for Kentucky. Since his father had been naturalized through the Reagan Amnesty of 1986, Puga arrived as a U.S. citizen. Still, his path wasn’t easy. He became a father at a young age and dropped out of school to work for… Read More
Bosnian Refugee Helps Start National Trucking Company from Scratch
Amira Zukic came to America with close to nothing, but after learning English and working hard, she and her husband now run one of Kentucky’s largest trucking companies, with $17 million in annual revenues. The secret to their success? “A lot of work, a lot of work, a lot… Read More
Dallas News: Detroit, St. Louis and other Rust Belt cities look to immigrants to revive their economies
In Texas, a lot of effort and taxpayer money go into recruiting businesses. Should more go into recruiting immigrants? That sounds counterintuitive, even controversial, given that so many immigrants live here already and statewide leaders often take a hard line on immigration and border security. But it’s a strategy that’s been… Read More
NAE Statement on DHS Recession of the Immigrant Entrepreneur Rule
Following the Trump Administration’s decision to revoke the Immigrant Entrepreneur Rule, New American Economy President John Feinblatt issued the following statement: “America should be rolling out the welcome mat for immigrant entrepreneurs, not sending them straight into the arms of our competitors,” said John Feinblatt, President of New American Economy. 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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