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.
HIGH-SKILLED IMMIGRANTS IN VERMONT
Learn more about the need for high-skilled immigration reform at www.LetPJStay.com VERMONT FACES A LARGE STEM SHORTAGE There are more STEM job openings than unemployed STEM workers: From 2009 to 2011, 4.8 STEM job openings were posted online in Vermont for every 1 unemployed STEM… Read More
Latino, Millennial, Immigrant Entrepreneurs Play ‘Enormous’ Role in US Economy, Says SBA Administrator Maria Contreras-Sweet
U.S. Latinos have said job creation and fixing the economy is among their most important issues that should be addressed by politicians during the midterm election, according to Latino Decisions 2014 Election Eve Poll comprising of 4,200 voters. Another Latino Decisions poll about Latinos’ views toward the economy found 61 percent of… Read More
HIGH-SKILLED IMMIGRANTS IN VIRGINIA
Learn more about the need for high-skilled immigration reform at www.LetPJStay.com VIRGINIA FACES A LARGE STEM SHORTAGE There are more STEM job openings than unemployed STEM workers: From 2009 to 2011, 3.3 STEM job openings were posted online in Virginia for every 1 unemployed STEM… Read More
University of Virginia Loses Bright, Talented Professor to China Because of Arduous Visa Process
Dr. Yuanbo Zhang, a physics professor in Shanghai, once had a promising career ahead of him in the United States. In 2000, Zhang, a China native, began a graduate program in physics at Columbia University, eventually earning his PhD in… Read More
HIGH-SKILLED IMMIGRANTS IN UTAH
Learn more about the need for high-skilled immigration reform at www.LetPJStay.com UTAH FACES A LARGE STEM SHORTAGE There are more STEM job openings than unemployed STEM workers: From 2009 to 2011, 1.5 STEM job openings were posted online in Utah for every 1 unemployed STEM worker in the… Read More
HIGH-SKILLED IMMIGRANTS IN TEXAS
Learn more about the need for high-skilled immigration reform at www.LetPJStay.com TEXAS FACES A LARGE STEM SHORTAGE There are more STEM job openings than unemployed STEM workers: From 2009 to 2011, 2.5 STEM job openings were posted online in Texas for every 1 unemployed STEM worker in the… Read More
Mexican-Born Professor, Inventor, and Entrepreneur is Living Her Dream Life in Texas
In some parts of Texas, immigrant inventors and startup founders are helping to revitalize areas hard hit by unemployment. One prime example: McAllen, Texas, a city in the Rio Grande Valley, where one promising nanotechnology startup that originated at the University of Texas–Pan American is already being heralded as a… Read More
Indian Software Engineer Starts Successful Tech Company in America, but Growth is Slowed by Broken U.S. Immigration System
Harvinder Singh knows all sides of the tech industry. Originally from northern India, Singh was hired in 1998 on an H-1B visa as a software engineer to help prepare for Y2K. After the millennium arrived without incident, Singh was out of a job, but he didn’t want to go back… Read More
HIGH SKILLED IMMIGRANTS IN TENNESSEE
Learn more about the need for high-skilled immigration reform at www.LetPJStay.com TENNESSEE 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 Tennessee for every 1 unemployed STEM… Read More
Statement on Introduction of the SKILLS Visa Act of 2015
CONTACT Sarah Doolin, Partnership for a New American Economy, [email protected] “This year, the United States will turn away almost 150,000 highly-skilled immigrants who are needed to fill job openings in our economy,” said John Feinblatt, Chairman of New American Economy. “The SKILLS Visa Act is a good first… 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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