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.
How a Former Undocumented Immigrant Started a $3 Million Business That Created 80 Jobs
Jorge Fierro was making himself a burrito after his dishwashing shift when he got the idea for the business that would eventually become Rico Brands, a $3 million food business and employer of 80. “I opened a can of refried beans,” Fierro says, “and I just couldn’t believe how bad… Read More
President/CEO of Greater Austin Hispanic Chamber of Commerce Calls Immigration Reform “Critical” to Local Economy
Since he joined the Greater Austin Hispanic Chamber of Commerce in 2013 as President and CEO, Mark Madrid has seen the city’s Hispanic community have a tremendous economic impact. But he’s also witnessed a lot of lost opportunities. “Austin is an academic hub,” he says. “But the limited supply of… Read More
Director of Startup Accelerator Turns to Immigrant Entrepreneurs to Boost St. Louis Economy
“I wish more people had experience working with immigrant entrepreneurs,” says Ginger Imster. “Once you’ve witnessed their talent and passion, there is simply no doubt they’re a positive addition to our communities.” Imster knows this well. She is the executive director of Arch Grants, a nonprofit organization that provides $50,000… Read More
Immigrants Open Businesses and Create Jobs Says Dallas Bank Manager
Juan Carlos “JC” Gonzalez never questions the economic benefit of welcoming immigrants into the United States. A first-generation American, Gonzalez is a vice president and branch manager of a Wells Fargo in Dallas and serves on the board of directors of the Irving Hispanic Chamber of Commerce. Read More
Houston Has This Immigrant CEO to Thank for Clean Streets
Maria Rios describes herself as “the ultimate example of the impact of immigrants in the United States.” The founder and CEO of Nation Waste, Inc., a waste removal company based in Texas, Rios emigrated from El Salvador with her family when she was 13. “When I arrived to the United… Read More
Nepali Refugee Doesn’t Let Job, Business or Family Stand in Way of Volunteering: ‘We Want To Give Back’
When Jay Subedi arrived in Syracuse, New York, with his parents, wife, and baby daughter in November 2008, it was one of the coldest, snowiest seasons in recent memory. The city wasn’t just blisteringly cold, but, like the rest of the country, mired in a recession. Subedi, a native of… Read More
Indiana’s Primary: Immigrants in the Hoosier State
The 2016 primaries are rapidly nearing a close, and today the votes are being held in Indiana. There are 57 Republican delegates and 83 Democratic delegates to be awarded, and they can be critical wins for any candidate to secure nomination. Indiana’s immigrant population growth was relatively slow… Read More
Business Owner With 45 Employees Began Career With No Work Permit, Sees Same Potential in Immigrants
Kevin Devine did not grow up in an affluent family. His father had an eighth-grade education, and Devine shared a bed with his three brothers until he was 11 years old. At age 14, he started working as a night janitor. On his first day, his employer asked… Read More
Visionary Indian Entrepreneur Has Created Thousands of Jobs for Americans
Ragy Thomas, founder and CEO of the social media platform Sprinklr, believes that a welcoming, streamlined immigration policy is vital to the economic future of America. As a technology entrepreneur, investor, and visionary, who has founded four startups and created thousands of jobs, Thomas’ own story reveals how drawing global… Read More
Mexican-Born Immigrant Has a Ninth Grade Education—and a Highly Successful Restaurant in Waco
For Cesar Leal, life in the United States “is like having a big table full of food and you’re just allowed to eat until you’re full.” It’s fitting then, that Leal’s livelihood in Waco, Texas, revolves around food. Originally from Mexico and now a U.S. citizen, the entrepreneur opened Leal’s… 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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