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.
An Indian in Kansas Brings Hundreds of Jobs and Free Healthcare
Abdul Arif grew up in a middle-class family in Hyderabad, India, and came to Wichita, Kansas, at 17 to join his brother, who was a naturalized citizen. He’d hoped to get an education in America, but things didn’t go as planned: Arif dropped out of high school, got married, and… Read More
Louisiana Lawyer: For Sake of Economy, ‘Make Immigration Viable Again’
When Baton Rouge was devastated by flooding in 2016, it was immigrants who came to the rescue. “There was no way that Baton Rouge and the surrounding areas could rebuild without immigrant labor, whether documented or undocumented,” says Paul “Woody” Scott, a Honduran-American immigration lawyer who has worked in the… Read More
Louisianan Says it’s the Strangers Who Make His Town Home
Chris Wade cares about the people of Monroe, Louisiana. He was born there, raised there, and received a bachelor’s degree in psychology there, from the University of Louisiana at Monroe. He’s also spent a significant portion of his adult life volunteering in and around the city: driving a truck for… Read More
Ancient Indian Tradition Sparks 21st Century Business
When Sudha Krishnasamy was growing up in India, family meals were served on dried leaves. They were inexpensive, disposable, and completely biodegradable. After arriving in the United States, Krishnasamy was bothered by the frequent use of paper and Styrofoam plates; it felt wasteful to use something once, toss it in… Read More
Hard Work and Good Salsa Make for a Thriving Louisiana Business
You won’t see any paid advertisements for Ki’ Mexico, a laid-back cantina that serves authentic Mexican food and margaritas in Shreveport, Louisiana. But the two-year-old restaurant has near-perfect ratings on Facebook, Yelp, and TripAdvisor, and regularly attracts crowds so large that co-owner Rodrigo Mondragon had to purchase a business next… Read More
Immigrants Bring an Alabama Town Back to Life
Ashley Cummins has lived in Russellville, Alabama, her entire life. When she was young, the downtown area was “full of people in the streets and in the shops,” she says. Slowly, though, the once-popular shopping district transformed into “a ghost town.” “People just didn’t have the time and money to… Read More
After Accepting Immigrants, Kentucky Thrives
Since the city of Owensboro, Kentucky, began helping immigrants and refugees secure employment and affordable housing, something has happened: the local economy has grown 6 percent and unemployment has dropped to one of the lowest rates in the state. “A lot of these folks are entrepreneurs at heart,” says Joe… Read More
A Lone Face of Diversity Brings Art to a Small New York Town
In Perry, New York, where she serves as the executive director of the Arts Council for Wyoming County, Jackie Hoyt is one of the few non-white, immigrant faces. There, she makes an important contribution to the community of 41,000 by creating a diverse program that… Read More
Entrepreneur from New Zealand Creates Jobs while Helping Americans Give Back
When Dale Nirvani Pfeifer stumbled upon a Facebook post about an Afghan teacher trying to build a school for girls, she immediately felt compelled to give. Yet it took a good half hour to hunt down the website and navigate the donation form. “How many… Read More
Doctor Restores Vision Globally but Needs Skilled Workers in U.S.
Since 1986, Dr. Jash Sharma has run CIMA Life Science, an international company that fulfills a personal mission: Inspired by his father, who went blind at age 62, Dr. Sharma is helping tens of thousands of vision-impaired people to see. The company manufactures intraocular lenses, which replace a patient’s natural… 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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