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.
British Chef Cooks Up the Quintessential American Dream
British immigrant Mark Elliott opened his first restaurant, Elliott’s on Linden, in the fall of 2000, serving up southern staples such as shrimp and grits alongside more creative culinary endeavors like elk chops with lemon-sage marmalade and pomegranate jus. The fine-dining eatery was a hit: Within months, Elliott… Read More
Reform Allowing Immigrants To Study and Work Would Boost Community Output, Says Mexican-American Volunteer
After Angelica Velasquez’s father came to the United States from Mexico at age 20, he was deported several times. But he returned, married, and started a construction business. “He’s a contributor. Plus, they raised me and my five siblings, and we’re all great contributors,” says Velasquez, 41, the human resources… Read More
When Immigrants Move to Take Pork Industry Jobs, Businesses in Downtown Guymon Thrive
As the program director of Main Street Guymon, a resource center dedicated to helping businesses in the small city of Guymon, Oklahoma, succeed, Melyn Johnson has unique insight into what allows her community to thrive. Since its founding in 2005, her group has accumulated roughly $10 million in private funding. Read More
Immigration Lawyer in Virginia Sees Firsthand How Expanding the American Dream Helps All Americans
Lisa Johnson-Firth – founder and principal attorney at Immigrants First, an immigration and human rights law firm, and adjunct law professor at Georgetown University – believes that helping foreign nationals achieve their American dream is the best way for all of us to fulfill our dream of being… Read More
With Investors Wary of Non-Citizen Founders, Two Immigrants Launch Multimillion Dollar Startup With Credit Cards
Marcela Henao’s company, LeapFactor, helps corporations increase efficiency and revenue and boasts clients such as L’Oreal, Bayer, JPMorgan Chase, and Avon. The Colombian immigrant, who manages a team of tech professionals across Latin America from her company’s base in Miami, has been successful from the start. By 2014, just four… Read More
Immigrant Contributions to Pittsburgh Region Advance the Economy
CONTACT Sarah Roy, New American Economy, [email protected] Pittsburgh, PA – Today, Pittsburgh Mayor William Peduto and Allgheny County Executive Rich Fitzgerald announced new research from New American Economy showing that the 82,308 foreign-born residents of the region have a significant impact on southwestern Pennsylvania’s economy through high rates… Read More
Assistant Public Defender for Prince George’s County Knows First-hand the Difficulties Many Immigrants Face
After growing up in the United States as the daughter of two undocumented immigrants, Llamilet Gutierrez decided to dedicate her career to protecting the rights of immigrants by becoming an assistant public defender for Maryland’s Prince George’s County. Yet current deportation fears have made life harder than ever… Read More
Advancing the Pittsburgh Region
New American Economy (NAE) has released a research brief that highlights the economic and demographic contributions of immigrants in the Pittsburgh region. The brief shows that the 10-county Pittsburgh region’s 82,308 immigrant residents have a significant positive impact on southwestern Pennsylvania’s economy through high rates of workforce participation… Read More
Despite the Challenges Posed by the Immigration System, Georgia Tech Professor Helps Dozens of Start-ups Take Flight
Back in his native country of India, Dr. Raghupathy Sivakumar says he always dreamed of working for Microsoft or Oracle. “But here,” he says of the United States, “I fell in love with academia.” Dr. Sivakumar, who goes by Siva, did his undergraduate studies in computer science in Chennai,… Read More
This Family Came to Down East Maine as Migrant Workers, but Left their Mark as Entrepreneurs
When Juana Rodriguez Vazquez moved to the United States at age four, her father was already something of a go-getter. For years, he’d been spending time in the United States—traveling from state to state as a migrant laborer, following the blueberries and oranges that were ripening in the fields. By… 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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