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.
New Americans in Toledo
New American Economy has developed a series of research briefs that examine the demographic and economic contributions of immigrant communities in cities across Ohio. The fourth report in the series focuses on Toledo and provides information on how immigrants have strengthened the local tax base, boosted the economy… Read More
New Americans in Columbus
New American Economy has developed a series of research briefs that examine the demographic and economic contributions of immigrant communities in cities across the state of Ohio. The latest report, produced with the City of Columbus and the Columbus Chamber of Commerce, focuses on Ohio’s capital city, Columbus, and shows… Read More
Report on New Americans in Columbus Highlights Economic Contributions of Immigrants
CONTACT Sarah Doolin, Partnership for a New American Economy, [email protected] The foreign-born in Columbus have more than $2 billion in spending power and have contributed over $258 million in state and local tax dollars Columbus, OH – New American Economy has developed a series… Read More
How Latino-owned businesses are helping the US economy
As the Latino population steadily grows in the United States, more Latino-owned businesses are being launched. The influx of Latino-owned businesses has led to a significant contribution to the nation’s economy. The key features of Latino businesses across the country give insight into the makeup of these companies, the source of… Read More
A New Cooking Class Concept: Immigrants Open Their Kitchens
Lisa Gross was raised on the cuisine of her grandmother’s native Korea. Growing up, when she came home from school, her halmoni would give her a snack of salt- and sesame-sprinkled rice. Dinners were made of Korean miso soup called Doenjang Guk, sautéed Korean beef, and multiple kinds of pungent… Read More
Why Immigrant Women Make Great Entrepreneurs
Starting a company is a lot like immigrating to America, says Nikki Barua: “You need to adapt to survive.” Barua, who is the founder and CEO BeyondCurious, an agency that creates mobile experiences for companies, has firsthand knowledge of both experiences. Born and raised in India, she set her sights… Read More
Coming To America—And To Entrepreneurship
After emigrating from Montenegro in 1996, Ardsley resident Benjamin Prelvukaj took a job waiting tables and working in the kitchen at Peter Luger Steakhouse in Brooklyn. “I knew five words of English,” he says. Prelvukaj saw a brighter future for himself in the US. When he left Montenegro, a tiny… Read More
New Americans in Cincinnati
On October 28, 2015, Cincinnati Mayor John Cranley and Cincinnati USA Regional Chamber of Commerce CEO Jill Meyer held a press conference to acknowledge the economic and demographic contributions immigrants have made in the Cincinnati metropolitan area. Drawing on data from a research report produced by New American Economy with the… Read More
Report on New Americans in Cincinnati Highlights Economic Contributions of Immigrants
CONTACT Sarah Doolin, New American Economy, [email protected] The foreign-born population in metro Cincinnati holds more than $1.5 billion in spending power and has contributed over $189 million in state and local tax dollars Cincinnati, OH — Today, Cincinnati Mayor John Cranley and Cincinnati USA… Read More
Report on New Americans in Denver Highlights Economic Contributions of Immigrants
CONTACT Sarah Doolin, New American Economy, [email protected] Adriana La Rotta, Americas Society/Council of the Americas, [email protected] Foreign-born households in Denver generate $6.9 billion in spending power, contribute more than $1 billion to Social Security and Medicare Denver, CO – This Wednesday, business, government, and community… 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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Make a direct impact on the lives of immigrants.
