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.
Dreamer: ‘They Are Going to Throw Us Somewhere and Not Care’
For now, Sara Hamdi works the delivery counter at a Dayton, Ohio, Olive Garden. But the 27-year-old undocumented immigrant dreams of going back to school, studying business, and one day opening her own restaurant. “I’d like to bring some heart into this world, and I feel like food brings a… Read More
If Allowed, Dreamer Could Help Ease South Carolina Nursing Shortage
Nineteen-year-old Lenda Vazquez works six to seven days a week at her father’s landscaping business in Gilbert, South Carolina. “I’m pretty much his right-hand man,” she says. Vazquez is an undocumented immigrant, but her protections under Deferred Action for Childhood Arrivals (DACA) have allowed her to obtain a driver’s license… Read More
DACA-Eligible Entrepreneurs Earned More Than $658.7 Million in Total Business Income in 2015
NEW YORK, NY – As the fight to protect Dreamers continues in Washington, NAE is releasing data every day showing just how much DACA-eligible immigrants contribute to the American economy. In today’s installment, we focus on entrepreneurship, and highlight that DACA-eligible immigrants – much like immigrants overall – start businesses at… Read More
Immigrant’s App Safely Connects Parents, Schools, and Kids
Originally from Vizianagaram, a town in the Indian state of Andhra Pradesh, entrepreneur Chaks Appalabattula had already earned an engineering degree with honors and was working as a computer science engineer when he decided to immigrate to the United States in 1998. Today, he is the CEO of Bloomz, a… Read More
Marketwatch: Hardships? Setbacks? Why immigrants thrive as entrepreneurs
Outsiders face a tough struggle fitting into a new culture. They must figure out how to deal with, and overcome, frustration, loneliness and a steep learning curve. And that’s why immigrants make such great entrepreneurs—they’re once again outsiders facing many of the same kinds of obstacles. Been there, done that. I’ve been… Read More
WZZM 13: Study: Immigrants pay millions in taxes in Grand Rapids
The New American Economy partnered with dozens of national organizations to host the iMarch for Immigration Campaign – a nationwide campaign happening Wednesday, Dec. 6. As part of the campaign NAE released new data regarding the role of immigrants throughout the U.S. Their study revealed the following: In the Grand Rapids Metro Area,… Read More
Undocumented for Years, Republican Immigrant Runs for State House
Not many brides choose GOP figureheads as their wedding inspiration, but for Brazilian-American newspaper editor, local Republican candidate, and formerly undocumented immigrant Emanuela Palmares, it was a no-brainer. This fall, when Palmares married Connecticut Rep. J.P. Sredzinski, the couple put portraits of Abraham Lincoln and Andrew Jackson on their wedding… Read More
Immigrants in Kansas City Metro Area Contribute $8.6 Billion to Local GDP and Hold $3 Billion in Spending Power
NEW YORK, NY – Immigrants contributed over $8 billion to the Kansas City metro area GDP in 2015, according to a new research brief released by New American Economy in partnership with the Greater Kansas City Chamber of Commerce. The report, which shows that immigrants in Kansas City are… Read More
Watch: Tech Entrepreneur Tom Chavez Joins the iMarch
https://youtu.be/2HjuyGUWF2o
Fox News: White House releases ‘explosive’ tally of green cards issued in ‘chain migration’
For the first time, the White House said, the federal government has counted the green cards issued between 2005 and 2015 to migrants admitted through family preference, or as immediate relatives of migrants already admitted into the country in perhaps the fullest portrait of “chain migration” ever developed. 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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