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.
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
New Americans in Salt Lake 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 Salt Lake County and provides information on how immigrants have strengthened the local tax… 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
Mexican Immigrant Creates Jobs and Opportunity for American Workers in Greenville
When Mexican native Ruben Montalvo first came to the United States at age 24, he was so sure his visit was temporary that he kept an open return ticket home. As valedictorian from his university, where he had received an engineering degree, he’d been reluctant to leave his cushy… Read More
‘Polish Cowboy’ and Entrepreneur Says Immigration Policy Stifles Economic Growth
“I’ve always dreamed of moving to the United States and building my company here,” says Damian Nowak, the Polish co-founder and CEO of Virtkick, a startup that helps businesses set up their own cloud-hosting networks. This dream became a reality when Virtkick became one of 10 companies selected—of 1,100 that… Read More
Taiwanese Immigrant Brings Asian Festival and Scores of Steady Jobs to Rocky Mountain Region
The morning of the very first Colorado Dragon Boat Festival in 2001, Ding-Wen Hsu was worried no one would show. Hsu had accomplished a lot since immigrating to the United States from Taiwan, including founding a successful company that makes roughly $10 million annually and employs 75 people. Read More
This Entrepreneur says Diversity Provides America with a Unique Economic Advantage
The American melting pot sets this country apart from almost every other nation, says Jie “Jay” Zheng, a Chinese-American chemist and restaurant owner in Denver. “That is something that’s unique to us that China and other countries cannot do,” Zheng says. But, he adds, to make the most of our… Read More
When Undocumented Immigrants Are Targeted, American Consumers Lose, Says Chamber Executive
Francisco Treviño, President and CEO of the Greater Tulsa Hispanic Chamber of Commerce, remembers what happened in 2007 when the Oklahoma state legislature passed one of the country’s most punitive immigration laws. Called the Oklahoma Taxpayer and Citizen Protection Act, the law went so far as to target U.S. citizens,… 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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