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.
Belgian Entrepreneur’s Innovation Tracks Vital Health Stats; Company Creates American Jobs
From a young age in Belgium, Pierre-Jean Cobut felt inspired by America’s rags-to-riches stories and was sure he belonged in Silicon Valley. In Europe, he says, “There’s not the same culture of risk taking.” Two years of undergraduate study in the United States confirmed his infatuation, and Cobut got the… Read More
Immigration System Says ‘No’ to Developer Eager to Work at His Own Startup
At the University of Pittsburgh, a small team of software developers has created a clinical data sharing technology that is changing the way researchers access data across institutions. The platform will encourage partnerships across the globe and, in turn, potentially reduce the time it takes to cure many forms of… Read More
New Americans in San José and Santa Clara County
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 San José and Santa Clara County. The brief shows that Santa Clara County’s… Read More
Report on New Americans in San José & Santa Clara County Highlights Economic Contributions of Immigrants
CONTACTS Sarah Doolin, New American Economy, [email protected] Zulma Maciel, Strategic Partnerships and Office of Immigrant Affairs, City of San José, [email protected]; (408) 535-8146 Silicon Valley Business Roundtable discusses local immigrant integration; new report shows foreign-born households… Read More
With Co-Founders in Visa Limbo, Entrepreneur Misha Esipov May Have to Move Their Startup Abroad
Imagine moving to a new country for an exciting new job. But there’s a snag: Since you have no credit history, you cannot lease a car, get a loan, or even rent an apartment. Financial tech entrepreneur Misha Esipov, 28, wants to solve the international credit problem. Read More
Immigrant Restauranteur Creates 250 American Jobs, Says Each One ‘Makes Me So Happy’
After the launch of his first restaurant — Frida Mexican Cuisine, in Beverly Hills, California — Vicente del Rio went on to open nine more Frida restaurants. Del Rio’s expansion efforts are ongoing, with another two restaurants slated to open this year. Today, his Frimex Hospitality Group currently employs more… Read More
This Entrepreneur Wants the U.S. Immigration System to Better Reward Hard Work
Jennifer Lucio Vargas has entrepreneurship in her blood. The founder and CEO of Miami’s 305 Communications and Events was born to immigrant parents from Cuba, and her father worked tirelessly to put himself through Harvard undergraduate and law school. “He worked cleaning toilets while he was in school,” she says. Read More
Thanks to DACA, Harrowing Journey of Young Boy Gets a New Ending: a Chance at Law School
Today Javier Hernández is a high-achieving college student and legal assistant who will likely pursue a career in law. And yet as a young boy in San Salvador, El Salvador, Hernández’s future wasn’t nearly so bright. In fact, he had one central fear: That when he turned 12… Read More
Chinese Immigrant Wants to Stay in the United States to Strengthen Internet of Things
Even though Yingzhe “Reginald” Fu, 25, just graduated with his master’s degree in mechanical engineering from the University of California, Berkeley in May 2016, the ambitious young man is already developing a company to advance the Internet of Things. That business, FingerBlocks, aims to connect people’s homes to the internet,… Read More
Advertising Executive and Long-Time Texas Republican Says U.S. Economy Depends on Immigration Reform
Today, Lionel Sosa is the founder of a $130-million advertising agency and a long-time Republican operative, who created campaigns for Presidents Ronald Reagan, George H.W. Bush, and George W. Bush. His success—and appreciation for the American political system—is a direct result of his status as a first-generation American. My parents… 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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