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.
Today’s NY Primary: How Immigrants are Contributing in the Empire State
After rigorous campaigning in the Empire State, the presidential hopefuls watch as New Yorkers head to the polls today to vote in the state’s primary election. Clinton, Sanders, and Trump certainly hope to reign victorious on their home turf, especially since New York has the potential to award a large… Read More
Serial Entrepreneur and Ethiopian Refugee Reminds Everyone: Immigrants ‘Work Hard and Play by the Rules’
When Fasil Muche was in high school, he received a letter telling him he was about to be deported back to his native Ethiopia. It turned out the letter was a mistake, but the emotional upheaval shaped Muche’s views on undocumented immigrants. He wishes no one had to live with… Read More
From Political Asylee to Employer — Colombian Immigrant Believes ‘You Have To Do Things in the Right Way’
Diva Herazo knows the value of good medical care. Originally from Colombia, she and her family were in the United States, in the process of applying for political asylum, when her daughter became ill. “She was born with just one kidney, and she got an infection and needed surgery while… Read More
Contractor Sees Firsthand How Draconian Immigrant Laws Hurt Arizona’s Economy
In 2012, Luis de la Cruz was at a banquet in Washington, D.C., being held to recognize minority-owned businesses. But when guests learned that he was from Arizona, they walked away in disgust. The state’s recently enacted anti-immigration bill had poisoned his reputation. “The only thing that happens” when… Read More
If Entrepreneur Doesn’t Get a Visa Renewal, Texans Stand to Lose Jobs — and Chocolate
Stefano Zullian never dreamed of being a chocolatier. But the Venezuelan-born mechanical engineer with an MBA from Emory University now runs Araya Artisan Chocolates, a Houston company with roughly $700,000 in annual sales and 11 employees. “It’s way more complex to start a business in Venezuela, and we started thinking… Read More
Citing U.S. Immigration Policy, Award-Winning Entrepreneur Forced to Move 25 Jobs to South America
It’s no surprise that Colombian-born entrepreneur Alex Torrenegra was named one of the World Economic Forum’s 2015 Young Global Leaders, MIT’s TR35 Colombia Top Innovator of the Year in 2012, and one of Business Insider’s 2013 “Badass Immigrants in Tech.” Fifteen years ago, after… Read More
Report on New Americans in Salt Lake County Highlights Economic Contributions of Immigrants
CONTACT Sarah Doolin, New American Economy, [email protected] Salt Lake Region Launches Task Force to Highlight, Enhance Economic Contributions of Immigrants; New Report Shows Foreign-Born Households Brought Billions to Metro Area GDP in 2014 Salt Lake County, UT – Today, Salt Lake County Mayor Ben McAdams,… Read More
“American Food is Immigrant Food,” Says the Owner of Food Services Business Incubator
Caleb Zigas has worked in restaurants for most of his life, from dishwasher to pastry chef to waiter, and was always struck by the fact that many talented line cooks were immigrants who had limited opportunities to be restaurant owners. “They didn’t have the same access to capital and wealth,”… Read More
CEO of $40 Million Company Says Keeping Undocumented Immigrants in the Shadows Wastes Talent and Stalls Business Growth
Thirteen years ago, Colombian-born entrepreneur Claudia Mirza and her husband, Azam, a native of India, co-founded Akorbi, a language-translation business based in Plano, Texas. Today, Akorbi has grown into a global business-solutions firm, providing localization services and multilingual staffing and marketing to companies such as Google, Aetna, and Blue Cross… Read More
After Surviving Brutal Kidnapping, Colombian Immigrant Becomes Successful Miami Entrepreneur
Cristhian Mancera loved his native Colombia and had planned to stay there forever. But when he was kidnapped at age 28, he lost faith in his country. “I was held for 10 hours and thought I was going to die. I was hit in the head multiple times,” he… 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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