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.
Child of Mexican Restaurant Owners Helps Build Houston’s Next Generation of Business Leaders
In 2007, when Laura Murillo became president and CEO of the Houston Hispanic Chamber of Commerce, the organization had just two employees and was in financial peril, about to lose its lease. Under her guidance, it is now the largest Hispanic chamber of commerce in the country, with 4,200 members,… Read More
Texas Immigration Attorney Sees Firsthand How Immigration Policy Stifles North Texas Economy
Ann Massey Badmus has spent over 22 years working in immigration law. Her greatest takeaway from over two decades of experience? The national conversation surrounding immigration does not represent what she sees every single day. “We keep hearing more and more rhetoric that immigration is bad,” Badmus says. “Why are… Read More
Successful Tech CEO Wants to Hire American Workers, but U.S. Immigration Won’t Let Him Stay in the Country
Peteris Krumins has been fascinated by computers for as long as he can remember. “As a child, I would spend literally all my time tinkering with hardware and software,” he says. By the time he was 15, he’d already been hired as a professional computer programmer in his native Latvia. Read More
Immigration Policy Nearly Drives Entrepreneur’s $20 Million Company From America
Brian Wong is redefining mobile advertising. The Canadian co-founder and CEO of Kiip — a company that offers rewards to players who reach new levels on mobile games or apps — has raised more than $20 million in venture capital and counts Coke, Kellogg’s, and Unilever among his customers. And… Read More
Tanzanian-Born Entrepreneur: Immigrants Aren’t Just “Giving Back to the Country, We Are Very Much a Part of the Country”
Abbas Bandali and his younger brother lived nearly parallel lives: They were both born and raised in Tanzania and attended school in England. But afterwards, Bandali’s younger brother returned to Tanzania, and Bandali ventured into an unknown future in America. “I can very easily compare and contrast my life and… Read More
America Needs Immigrant Scientists To Retain Its Competitive Edge: ‘Our Growth Is Constrained,’ Says Ohio Businessman
Dr. Ayman Salem is a metals engineer, though you won’t see him in a welding mask, standing amid flying sparks. His domain is the laboratory, where he examines nickel, titanium and steel alloys at the atomic level. “If we can understand how these metals are built, we can predict how… Read More
Immigration Reform Is ‘Fundamental to My Company,’ Says Finance Firm CEO
In 2013, Manu Smadja received an email from a desperate junior at his alma mater, the University of Virginia. The mechanical engineering major was $500 short on rent and about to get evicted, which would force him to drop out. In a last-ditch effort, he emailed Smadja asking… Read More
Immigration System Stands Between Doctor and Co-Founder of Revolutionary Health Technology and His Company
Platelets, the smallest of our blood cells, are critical to our survival. Key to wound healing, they stop us from bleeding out when we get a cut and are used in medical procedures ranging from surgery to cancer treatment. “Platelets are the Band-Aids of the bloodstream,” explains Argentine native Dr. Read More
Business Accelerator Executive Says Immigrants Add “Massive Societal and Economic Value” to U.S. Economy
Marc Nager believes that humans are hardwired for entrepreneurship. “With the right support, almost anyone can start their own business,” he says. And he should know: As the Chief Community Officer at Techstars, “a global ecosystem that helps entrepreneurs build great businesses,” Nager has helped… Read More
Immigrant Entrepreneur Develops Training Program that Boosts Student Salaries by $30,000 a Year
Mexican immigrant and entrepreneur Liliana Monge knows that in today’s economy tech skills help individuals thrive in the workforce. Yet access to quality tech training is often limited, leaving low-income and minority students behind. Recognizing this disparity, Monge and her husband, Gregorio Rojas, founded Sabio, a software engineering training program… 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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