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 Denver
On October 26, 2015, business, government, and community leaders will gather for “Growth in the New West: Maximizing Immigrant Contributions to Denver’s Prosperity,” an event convened by Americas Society/Council of the Americas (AS/COA) and New American Economy (NAE) in partnership with the Office of Mayor Michael B. Hancock and… Read More
Immigrant Entrepreneur Named “Engineer of the Year”
Dr. Karen Lozano is no stranger to public recognition for her achievements. A Mexican-born professor of mechanical engineering at The University of Texas Rio Grande Valley and a leading researcher in the field of nanotechnology, Lozano has won prizes ranging from R&D grants to outstanding teaching awards. Still,… Read More
Louisville’s immigrant labor force is larger than national average, study finds
Louisville’s percentage of immigrants in its work force is higher than the national average and higher than in peer cities Cincinnati, Nashville and St. Louis, according to a study released by Americas Society, Council of the Americas and the Partnership for a New American Economy. The Partnership for a… Read More
Tech and immigration: ‘PJ’ stays for now, but Echo Labs’ fate up in the air
You might have heard about the campaign to “Let PJ Stay.” Well, PJ — a Belgian entrepreneur whose student visa was set to expire soon and who had recently become the face of tech’s push for immigration reform — gets to stay. But he and his company may have to… Read More
Freeflow Research focuses on boosting Texas job market
America is losing the global STEM job market, largely because increasing numbers of qualified STEM graduates are immigrants returning to work and create businesses in their home country. Fortunately, San Antonio is tackling the “brain drain” problem head on. Freeflow Research, a non-profit global accelerator, was created to connect foreign-born students, business owners and investors with resources and opportunities… Read More
Sessions wrong about immigration’s impact
Sen. Jeff Sessions wrote a recent op-ed for theWashington Post headlined “America needs to curb immigration flows.” He was not talking about illegalimmigration. He was talking about legal immigration. As chairman of the Senate Judiciary Committee’s Immigration subcommittee, our senator’s view is significant. If there are good reasons to curb… Read More
High-Skilled Immigrants in Wisconsin
WISCONSIN FACES A LARGE STEM SHORTAGE There are more STEM job openings than unemployed STEM workers: From 2009 to 2011, 2.2 STEM job openings were posted online in Wisconsin for every 1 unemployed STEM worker in the state. As STEM fields grow, this problem will likely… Read More
Hispanics bring entrepreneurial spirit to U.S.
Twelve years ago, Claudia Mirza walked into the Greater Dallas Hispanic Chamber of Commerce as a job applicant. She walked out as her own boss — or, at least, with the idea of how she could create a business. But her company has far exceeded her original vision. Akorbi started… Read More
HIGH-SKILLED IMMIGRANTS IN WASHINGTON
Learn more about the need for high-skilled immigration reform at www.LetPJStay.com WASHINGTON FACES A LARGE STEM SHORTAGE There are more STEM job openings than unemployed STEM workers: From 2009 to 2011, 2.1 STEM job openings were posted online in Washington for every 1 unemployed STEM worker in the… Read More
Strain Placed on Russian Entrepreneur’s Business Because of H-1B Visa Cap
Up until 2011, Denis Kiselev was leading a successful career in financial services in his native Russia. He had a postgraduate degree in economics from The Ohio State University, but like so many other foreign-born students, he had returned home after graduation. After fifteen years in financial services, however, Kiselev… 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.
