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.
Cotton and Trump plot crackdown on legal immigration
Overlooked in Donald Trump’s campaign crusade against illegal immigration was his vow to crack down on legal immigration, too. Now, Sen. Tom Cotton (R-Ark.), a reliable Trump ally, is taking steps to execute that part of the president’s immigration vision — and it could provoke a showdown between two competing… Read More
Making America great again
A nation founded by immigrants, each of whom had begun life anew, on an equal footing now shut its doors to refugees fleeing war-torn Syria and suspended entry from seven Muslim-majority nations in the name of national interest and security. Many questions have arisen about Trump during the election campaign-about… Read More
Business Expert: Automation, not Immigrants, Have Taken U.S. Jobs
When Fariborz “FG” Ghadar was in Silicon Valley several years ago, he saw an alarming billboard. It read: “H-1B Problems? PIVOT to Canada.” Sponsored by the Canadian government and aimed at highly skilled immigrants in the technology sector, “It essentially said, If you are having difficulty getting a visa in… Read More
Young Immigrant Entrepreneur Has a Light-Bulb Moment
Viktor Klyachko believes that maintaining a healthy business community is essential to progress. “Business is what propels the world forward,” he says. Klyachko is the founder of Green Ignite, a company based in Utica, New York, that provides LED lighting systems to wholesalers throughout the Northeast. Launched in 2013, Green… Read More
Real Estate Tycoon, Philanthropist, Immigrant: America Would Be Crazy to Refuse People Like Him
The night before Sunil Puri’s father passed away, at the age of 94, he called his son to say goodbye. Speaking by phone from Mumbai, India, the retired yarn-trader offered a few final words of advice to his son, a multimillionaire property developer and business owner. Puri’s father urged him to embrace the United States and… Read More
This Immigrant Researcher is Changing the Future of Cancer Treatment, But Immigration Slowed his Progress
Radiology researcher Anthony Chang came to the United States from Taiwan in the 1990s to study at Vanderbilt and Yale, earned a PhD in experimental physics from the University of Texas, and was hired to direct the imaging laboratory at the Van Andel Institute in Grand Rapids, where he researched… Read More
When the Local Steel Mill Closed, This Mexican Immigrant Started a Business and Hired Americans
When Racine Steel Castings laid off its workers in the 1990s, welder Lauro Davalos found himself better prepared than many. Long determined to give his children something he’d never had — a good education — Davalos had already started a business in downtown Racine, the Southeast Wisconsin town… Read More
New Report Shows Immigrant Contributions to Fargo-Moorhead Area Advance the Economy
New Report Shows Immigrant Contributions to Fargo-Moorhead Area Advance the Economy Fargo, ND – New American Economy has released new research showing that the 10,663 foreign-born residents of the Fargo-Moorhead metro area make significant contributions to the region’s economy through millions of dollars in tax contributions and… Read More
Nearly 6 Million Workers Employed at Immigrant-Owned Businesses, New Report Finds
Nearly 6 Million Workers Employed at Immigrant-Owned Businesses, New Report Finds 40.2 Percent of 2016 Fortune 500 Firms Founded by Immigrants or Their Children New York, NY – New American Economy released a report detailing the outsized role immigrants play as entrepreneurs in the U.S. economy. Read More
The Economic Success of America’s Immigrant Entrepreneurs
Today, NAE released its latest research, “Reason for Reform: Entrepreneurship,” which focuses on the success and economic contributions of immigrant entrepreneurs in America. Perhaps not surprisingly, immigrants tend to be an entrepreneurial bunch: Though they made up just 13.2 percent of the total U.S. population in 2014, they represented… 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
Make a contribution
Make a direct impact on the lives of immigrants.
