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.
Stanford Business School Grad Hopes Reform Will Allow Him to Keep Company in Silicon Valley
Russian-born immigrant, recent Stanford Graduate School of Business graduate, and entrepreneur Misha Esipov, 28, is “on a mission to improve immigrant lending around the world” and “build a cross-border credit bureau to connect U.S. lenders to international data.” His company, Nova Credit Inc., is developing an international credit passport system that allows people’s… Read More
Stanford Business School Grad Hopes Reform Will Allow Him to Keep Company in Silicon Valley
Russian-born immigrant, recent Stanford Graduate School of Business graduate, and entrepreneur Misha Esipov, 28, is “on a mission to improve immigrant lending around the world” and “build a cross-border credit bureau to connect U.S. lenders to international data.” His company, Nova Credit Inc., is developing an international credit passport system… Read More
Immigrant Auto Dealership CEO Wants a Merit-Based Immigration System
When Bernie Moreno’s mother decided to leave her native Colombia and bring her seven children, husband, and 22 suitcases to the United States, it wasn’t to escape a life of poverty. She wanted to avoid a life of entitlement. Worried that her children would grow up too comfortable in an… Read More
First-Generation American Entrepreneur Needs Immigration Reform to Compete Globally
As Argentine immigrants, Betty Manetta’s parents worked long hours in factory jobs to put their daughters through private school. Witnessing her parents’ work ethic and their belief that education is the key to success, cultivated a drive in Manetta. After high school, she worked for Western Electric, put herself through… Read More
U.S. Economy Can’t Win Without Guest Workers, Says Arizona Business Consultant
Republican Jaime Molera, founding partner of Phoenix consultancy Molera Alvarez, says a strong business climate depends on immigration reform. “When Arizona was going through a number of challenging policy issues, like the infamous and controversial Senate Bill 1070” — a law requiring police to determine the immigration status of… Read More
The Foreign-Born in Des Moines
New American Economy has developed a series of research briefs that examine the demographic and economic contributions of immigrant communities in counties and cities across the United States. The latest report in the series focuses on Des Moines. The brief shows that 48,760 immigrant residents in Des Moines–who account for roughly… Read More
New Americans in Houston
The Partnership for a New American Economy has developed a series of research briefs that examine the demographic and economic contributions of immigrant communities in counties and cities across the United States. The latest report in the series focuses on Houston, Texas. The brief shows that Houston’s 1.3 million… Read More
Texas Mayor: America Can’t Turn its Back on Immigrants ‘We Invited’ Here ‘Through Our Conduct’
Austin, Texas, is known for being one of the most creative, innovative cities in the United States. It’s why Steve Adler is so proud to be the city’s mayor — and he knows that to maintain the city’s vibrancy it needs to celebrate its immigrant residents. In Austin,… Read More
Pakistani Immigrant, Navy Reservist, Successful Businessman Believes in a “Nation of Optimism and Ideas”
When Ali Samana came to the United States from Pakistan as a 13-year old, he immediately adopted America as his home. “This is my country of choice,” he says. “I make a conscious choice every day to be an American.” Nearly 20 years later, Samana is a U.S. citizen, a… Read More
Young Republican Argues for Fiscally Responsible Approach to Undocumented Immigrants
Michael Banerian, the youth vice-chair of the Michigan Republican party, is a 22-year-old political science major at Oakland University, a part-time salesman and deliveryman for his family’s Detroit-based wine-distribution business — and a proud fourth-generation Armenian-American. “When you look at the American dream, and the successes people have been… 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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