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.
Dallas News: Trump backlash? Dallas, Houston and others put out the welcome mat for immigrants
As in America, there are two kinds of Texas. One pushes a bathroom bill that targets transgender students and dismisses the hit on Texas’ business-friendly image, and the other rises up in opposition and holds off the measure. One passes a “show me your papers” law that bans sanctuary cities, and… Read More
Cleveland.com: Global Ties Akron to launch international ‘Global Threads’ magazine
Global Ties Akron is one of only six organizations in the country to be awarded state funding for a cultural heritage project to be unveiled at the Akron Art Museum. “Global Threads” is an online international magazine that will launch Sunday, April 22 from 1-5 p.m. at the museum. Read More
After Fleeing Bloodshed in Gambia, Immigrant Entrepreneur Starts Successful Business in Little Rock
In 2000, when Maf Sonko was 15, his family fled a bloody government crackdown on student demonstrations in their native Gambia. They received asylum and settled in North Carolina, where Sonko finished high school and earned a degree in industrial engineering from North Carolina State University Since then, Sonko… Read More
Caller Times Opinion: Why Congress shouldn’t cut legal immigration
Leticia Chavez represents everything that’s good about the Christus Health System. She cares deeply for her patients, and consistently validates their dignity as she compassionately tends to them in our intensive care unit (ICU). Leticia is uniquely empathetic. Like many of our patients, and tens of thousands of South Texas… Read More
Multilingual Immigrant Uses Her Skills to Advise Corpus Christi Business Community
Growing up under a dictatorial regime in Panama, Lorena Parada-Valdes longed to live in a democratic country. In 1979, she had her chance. That year, she was one of just four Panamanian college students to receive a merit-based scholarship to study in the United States. After graduating from Bates… Read More
Indian Native Finds Success in America, Gives Back to Adoptive Home of Corpus Christi
Indian native Kamlesh Bhikha grew up in an entrepreneurial family. His grandfather was a sugarcane and cotton farmer and his father manufactured diamonds, selling the gems he’d fashioned from rough stones. Bhikha also aspired to be his own boss. “The harder you work, the more you reap,’” he says. “And… Read More
Pioneering Latina Aviator Tells the Stories of Other Latinos
A child of Mexican immigrants, Graciela Tiscareño-Sato grew up in small, north Colorado towns dominated by meatpacking plants. Her mother worked on the assembly line, her father in high-end men’s clothing stores as a tailor. Together they raised five children. It was stable, honest work, says Tiscareño-Sato, but she aspired… Read More
KERA News: How Immigrants Benefit The Local Economy
The top local stories this morning from KERA News: A new report from the group New American Economy looked at the economic contributions of immigrants in the city of Dallas. This comes as the U.S. Supreme Court this week declined to take up the Deferred Action for Childhood Arrivals, or… Read More
After Finally Escaping Vietnam, Refugee Works to Help Those Who Come After Him
In 1982, at age 31, Walter Nguyen made his fifth and final attempt to escape Vietnam. Prior attempts had landed him in jail, but he did not have a choice. Food was scarce, and, because he had worked as a press officer for U.S.-backed South Vietnamese forces, the communist government… Read More
Maine Dreamer: ‘People Should Not Be Living in Fear in America’
“EM,” a young immigrant brought to the United States from El Salvador at the age of 3, has been living in fear since the Trump administration announced in September 2017 that it would phase out DACA unless Congress takes action. “If something happens and I’m deported, I would not go… 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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