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.
Latina Entrepreneur Says Immigrants Play an Important Role Filling STEM Positions
Laura Sanchez, one of a tiny number of Latinas who own IT companies in the Chicago area, is proud to be a link between Chicago’s STEM (Science, Technology, Engineering, and Mathematics) and Hispanic communities. Sanchez was born in Mexico got her degree from Tec de Monterrey, a school she… Read More
CEO of Mavin Global says Immigration System Makes U.S. Firms Less Competitive
Sai Naik’s father came to America from Mumbai in the 1960s with little more than the few cents in his pocket and an abiding love of Elvis Presley. Over the decades that followed, he earned a PhD in materials engineering, held a series of well-paid jobs, and went on to… Read More
Immigration System is Holding Back Social Enterprise
In 2007, Catalina Rojas and her husband started the Peace and Collaborative Development Network (PCDN), a social enterprise that connects more than 35,500 professionals, organizations, and students with the resources they need to scale social change. With help from their two part-time employees, their goal for this year is to… Read More
Immigrant Entrepreneur Wants to Bring 500 Jobs to Tennessee, Needs Immigration Reform to Do It
When Darius Mir opened his company Made in America (MIA) Seating in Union City, Tenn. two years ago, he pledged to create 500 jobs for Tennessee’s 8th Congressional district in five years. Despite earning a projected $50 million in group sales this year alone, the U.S. immigration system may actually… Read More
This Regional Franchise Owner Recognizes Value of Immigrant Business Owners
As the regional franchise owner for commercial cleaning giant Jan-Pro Cleaning Systems Midwest, Alison Mairet oversees more than 40 franchisees, ranging in size from single-person businesses with revenues of $5,000 a year to million-dollar operations with large teams that serve scores of commercial clients. Mairet estimates that 40 percent of… Read More
Lorain County Commissioner: Immigrants Boost Economic Growth
Over his eight-year tenure as a state representative for Ohio’s 55th district, current Lorain County Commissioner Matt Lundy saw how the negative national discourse on immigration reform so easily trickled down to the local level. “Many elected officials have turned something unique and positive – opportunity and improvement… Read More
Purdue Professor Says Our Economy Suffers When Talented International STEM Grads Are Forced to Leave
Professor Gerhard Klimeck is a master of the Conte, a huge supercomputer based in Indiana. Rippling with copper wire, Conte is capable of running the sort of design simulations that are responsible for our smaller and sleeker iPhones. Klimeck works in the cutting-edge field of nanotechnology, but he grew… Read More
Visa Process Too Daunting for U.S. Firms, Says Award-Winning Entrepreneur
The story of Radhika Reddy is a classic immigrant rags-to-riches tale. In 1989, Reddy left a low-paying banking job in India to come to Cleveland, Ohio, to earn a master’s degree in business administration at Case Western Reserve University. When she received permanent residency status six years later, she started… Read More
State Representative and Entrepreneur Says Talent Shortage is Hurting Economic Growth
Sam Rasoul epitomizes the ambitious spirit of America’s immigrant families. “My parents left the Middle East due to turmoil in the late 1960s,” says Rasoul, who was born in Ohio and raised in the Roanoke Valley. Rasoul, who would go on to earn an MBA, start two businesses, and help… Read More
In Immigrants, Michigan’s Business Community Sees a Way to Grow the Economy, Says Entrepreneur
When Bing Goei and his parents came to western Michigan in 1960, they were among the first Indonesians to arrive in the region, and their arrival made the front page of the local newspaper. “It must have been a slow news day,” Goei laughs. These days, it’s hardly big news… 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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