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.
Skilled migrants welcome — April Fools’!
Today, the U.S. government will begin to accept applications for the skilled H-1B guest-worker visa. H-1Bs are employer-sponsored visas that run for three years and can be renewed once. In recent years, applications for the H-1B have been filled in a few days as there are only 85,000 available for… Read More
In The Land Of Opportunity, Why Hinder Our Own Success?
We often hear that America is a nation of immigrants, but some members of Congress have forgotten the simple truth – immigration is our country’s single greatest competitive advantage in a growing global economy. The primary driver of the U.S.’s position as the worldwide leader in innovation and entrepreneurship is… Read More
Meaningful immigration reform key to continued innovation in tech and beyond
Technology industry leaders and entrepreneurs from across the globe flocked to Austin this week for the 2015 SXSW Interactive Festival. SXSW Interactive serves as an incubator of tech and digital creativity and innovation. Sharing new ideas is a cornerstone of the festival, but the idea that should demand the most… Read More
GOP donors praise Jeb Bush for stance on immigration
Jeb Bush was held up by top Republican donors today as one of the party’s best voices to champion immigration reform in the coming presidential election. Both Mike Fernandez, a major GOP donor in Florida who admitted he was biased, and Spencer Zwick, who national finance chairman of Mitt Romney’s 2012… Read More
Statement of Partnership for a New American Economy Chairman John Feinblatt on the Startup Act
CONTACT Ryan Williams, New American Economy, [email protected] “Entrepreneurs are the job creators that help drive this economy forward, but today our immigration policy turns many of them away, while other countries fight to welcome them,” said John Feinblatt, Chairman of New American Economy. “The Startup Act is… Read More
A. Scott Anderson: Time to pass Immigration Innovation Act
It’s not often that Congress and the president have the opportunity to do something to improve the economy and create high-paying jobs — while at the same time showing citizens that Washington can get past gridlock and dysfunction and enact important public policy. That’s the opportunity Congress has with the… Read More
Immigration reform is good for business
Immigration reform has long been a topic of interest to business owners. From its impact on employees, to the reduced burdens of document compliance, to potential economic stimulation, the tentacles of such legislation would undoubtedly touch the business sector. Questions as to how it would be positive or negative —… Read More
What’s missing in America’s immigration debate
Has the U.S. forgotten how critical a vibrant immigrant community and a functioning immigration policy are to the nation’s economy? A showdown is expected today in the U.S. Senate on a Homeland Security spending bill that would derail President Obama’s recent actions on immigration. What seems lost in this “inside-the-Beltway”… Read More
Op-ed: H-1B visa reform will ensure America retains its innovative status
Pick a problem that troubles our country today. It could be the rough shape of our infrastructure or the emergence of frightening new diseases. It might be the threat of terrorism or challenges to our economic influence around the globe. As an American, you’re probably optimistic that we… Read More
Immigration and tech present unlimited potential for U.S.
It seems like every week I’m meeting or working with people from Delaware companies that are growing specifically because of the ingenuity and insights from immigrant workers in the STEM (Science, Technology, Engineering, Math) field. Unfortunately, the views expressed in a recent Delaware Voice column by John Garrity represent an… 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.
