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.
A Former Undocumented Immigrant is Behind One of Kansas City’s Most Popular Youth Soccer Facilities
Raul Villegas had been living in America as an undocumented immigrant for more than 20 years when he decided to build an indoor soccer facility in Kansas City, Kansas. That was in 2013, long before the Deferred Action for Childhood Arrivals program, or DACA, removed the threat of deportation for… Read More
Without Immigrants ‘Almost Every Service Industry Would Collapse,’ Says Former Cop and Community Leader
Hector Flores, National Immigration Committee Chair for the League of United Latin American Citizens (LULAC), was raised by his Mexican-American grandparents in South Texas. He spent summers doing migrant work, traveling north to Indiana to pick cherries then south to West Texas to tend to the cotton crop. When he’d… Read More
After Coming as a Cuban Refugee, This Entrepreneur Built a $50 Million Business
When the dot-com bubble burst in 2001, Cuban-born entrepreneur José Prendes watched the ensuing chaos carefully. He was trying to determine which e-businesses would survive and why. One that continued advertising with television commercials, he noticed, was 1-800-Pet-Meds. “I thought that it had to be a good business, since amid… Read More
This Indian-Born Immigrant is Unshackling Opportunity
A few years after arriving in the United States in 2005 to work for a large multinational corporation, Indian-born entrepreneur Nitin Pachisia decided to start a company of his own in California’s Silicon Valley. U.S. immigration policy nearly got in the way of his efforts, presenting incremental challenges on top… Read More
Immigration Policy Nearly Prevented This Jordanian-Born Entrepreneur from Bringing Millions in Investment to America
Everything was going well for Mohannad “Moh” Arbaji. It was September of 2015, and he had just raised $2 million in venture capital funding for his educational prep business, Chalk Talk. But after a temporary trip to his native Jordan, where Arbaji had traveled to expand his investor pool, the… Read More
Co-Founder of Minneapolis Law Firm Sees Immigration and Human Rights Inextricably Tied
For attorney Veronica Walther, co-founder of the Minneapolis-based firm Walther Goss Law, immigration rights and human rights are one and the same. Walther didn’t always see things this way. Initially, she wanted to be a human rights lawyer, something she described in her application essay to Minnesota Law School. “I… Read More
Miami Businesswoman Wants Immigrants to Have Access to Same Opportunities She Had
Maria Fischer Millet says business is in her blood. Her father ran a PR agency for more than 25 years in his native Nicaragua before he moved to the United States. So it was only a matter of time before Millet would rise to prominence in the business… Read More
Mexican Entrepreneur Comes to Learn English, Stays To Launch $2 Billion U.S. Company
Mexican-born entrepreneur Isaac Torres came to the United States to learn English and wound up staying to found InterCambio Express, a money transfer service that now processes around $2 billion a year in transfers to countries across Latin America. Torres employs about 250 people — half in the United States,… Read More
Student: U.S. Can Harness Billions of Dollars From Immigrants
Adrian Arreola is the child of immigrants and has witnessed firsthand the fight for success in the United States. “What my dad accomplished with his drive and determination, especially coming from nothing, is amazing,” says Arreola. “I tell him he’s my idol every day.” Indeed, his father was an undocumented… Read More
Esteemed Scholar and Khmer Rouge Refugee Speaks to Value Immigrants Bring a Country
When it comes to immigration, noted professor and political scientist Dr. Sophal Ear recalls a statement on Indochinese refugees made by former U.S. Secretary of State Cyrus Vance. “He was basically saying that America is a nation of refugees,” Dr. Ear says. “His point was, everybody who has come to… 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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