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.
Immigrant restaurateur gives back to the community through Lebanese cuisine
Gus Sleiman’s family left their homeland in 1989 to escape the Lebanese Civil War, a 15-year conflict that killed an estimated 150,000 people and displaced another 900,000 — about one-fifth of the population. Sleiman was 16. The family moved to Michigan then New York and, while visiting a church in… Read More
New Data Shows Cedar Rapids’ Immigrants Accounted for Nearly Half of the County’s Total Population Growth
A new report finds that immigrants accounted for 47.1 percent of total population growth in Cedar Rapids between 2012 and 2017, according to new research from New American Economy (NAE). Read More
Lebanese immigrant ensures newcomers have opportunities in Cedar Rapids, IA
When Salma Igram arrived in the United States, she was 18 years old and had never seen a calculator or a hamburger, “let alone a hot dog,” she says. But there she was in her husband’s fast-food restaurant, Jimbo’s, working the griddle and mastering the cash register. “My husband would… Read More
Immigrant credits English language and training opportunities as critical to his success
Tony Golobic jokes that he got his first job in America —cleaning oil-fired boilers —because no one else wanted to do it. “The boilers were red hot, the work was dangerous and dirty,” he says. “But I was making really good money, a lot more money than I ever imagined. Read More
New American Economy on the RELIEF Act of 2019
New American Economy explains the merits of the RELIEF Act of 2019. Read More
Immigrant Entrepreneur Opens Doors for Innovation and Design in Wayne County
At times during the First Liberian Civil War, young Andreas Browne got on his knees and prayed for the opportunity to live. Now he calls his time in America his “second life.” Browne grew up in Monrovia, the capital city of Liberia, on Africa’s western coast. His mother moved to… Read More
Peruvian American Helps New Orleans Rebuild, Mentors Young Construction Workers
There was no shortage of construction work in New Orleans after Hurricane Katrina. But as thousands of migrant workers — many from Spanish-speaking countries — poured into the city, reputable local contractors who could maintain high standards amid the dizzying pace were at a premium. Among those who came… Read More
New American Economy and Open Avenues Foundation launch the Boston New American Festival, in partnership with HubWeek
New American Economy and Open Avenues Foundation launch the Boston New American Festival, in partnership with Hub Week Read More
New Report Shows Immigrants in Genesee County Paid More than $100 Million in Taxes in 2017
GENESEE COUNTY, MI – Immigrants paid more than $100 million in taxes in Genesee County in 2017, according to new research from New American Economy (NAE) in partnership with the City of Flint Mayor Karen Weaver‘s Office and the International Center of Greater Flint. In addition to their… Read More
New Data Shows Immigrants Are 40 Percent of Business Owners in Dallas County
DALLAS, TX – Immigrants accounted for 40 percent of Dallas County’s business owners in 2017, according to new research from New American Economy (NAE) in partnership with the North Dallas Chamber of Commerce. In addition to their financial contributions, which included paying $2.8 billion in federal taxes and… 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
Make a contribution
Make a direct impact on the lives of immigrants.
