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.
VT Digger: Commentary: Immigrants, Refugees, Asylum Seekers And The Myths Of Migration
When I was a child, I thought everyone was a first-generation American like me. I couldn’t believe it when friends said their parents and grandparents were born here. All of my maternal and paternal family – parents, aunts, uncles and their parents – emigrated to the United States and Canada… Read More
MLive (MI): Immigrants drive economy, ease population decline in Detroit, study shows
Immigrants in Detroit are helping to drive business activity and ease the city population decline, according to a study of demographic and economic impact of immigration in the Motor City. The study by Global Detroit and New American Economy found immigrant-owned businesses in Detroit generated $15.5 million in business income in 2014. “Detroit is an early pioneer in the… Read More
CNBC: 10 iconic US companies started by immigrants
As the debate over travel bans continues, it’s worth remembering the importance of immigrants on America’s business landscape. Some of the most iconic companies in the Fortune 500 were started by the children of immigrants. Apple co-founder Steve Jobs, famously, is a child of a Syrian immigrant. Other founders with immigrant parents… Read More
Innovative Pastor Helps Refugees Help the U.S. Economy
This year, former pastor Leah Lonsbury opened Just Bakery, an Atlanta nonprofit that provides job training, food service certification, and a living wage for resettled refugees. Lonsbury isn’t the first to turn to baking to make change. She used to live in Madison, Wisconsin, where a good friend runs… Read More
HuffPost: Why Learning A New Language Is Always A Good Career Move
In a global economy, simply telling your potential employer that you have what it takes to get the job done doesn’t cut it anymore. Hiring managers at top firms weigh in many factors – some of which might be out of your control. In trying to land that dream job,… Read More
U.S. Lacks Computer Workers to Help Entrepreneur Expand U.S. Business
When Indian immigrant Sameer Penakalapati started Avani Technology Solutions in 2010, the Rochester-based business had two employees and revenues of $300,000. Since then, the company, which provides information technology services, has soared. It now has $50 million in annual revenue and 520 American employees in eight cities across the country. Read More
For Promising Immigrant Entrepreneurs, a Struggle to Stay in U.S.
Siva Raj was working as a product-development manager in Rochester, New York, in 2013 when he realized he had a problem. Although he exercised regularly, his health was poor. “My blood pressure was starting to rise, and my aerobic capacity was less fit than someone who was my grandfather’s age,”… Read More
STAT: Biomedical innovation depends on immigrants’ contributions
I am an immigrant who, like many of my immigrant colleagues, feels proud to be contributing to my new country by working hard and creating new jobs for others. Yet our stories — indeed our very existence — make some people in government uncomfortable. Not long ago, Democrats and Republicans… Read More
Startup Offers Simplicity, but Visa Process Still Cumbersome
When Xiao Wang’s parents came to Phoenix from China nearly three decades ago, they hired an immigration lawyer to help them obtain their green cards and, later, their citizenship. The cost: The equivalent of five months of rent. Wang’s parents believed the steep investment was worth the price: As graduate… Read More
A Stowaway’s Son Uses Business Acumen to Help New Jersey Elders
Dominican immigrant Jose Brito Bueno grew up in poverty but now runs WeCare, a domestic-care company with 213 employees. When he was just 10 years old, his father — leaving their home in Santo Domingo — stowed away in a cargo ship bound for the United States. He hid in… 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
All gifts are matched dollar for dollar up to $75,000
No one should face the immigration system alone
