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.
Atlanta mayor announces plans for welcoming new arrivals
Mayor Kasim Reed on Wednesday announced his administration will create an office of multicultural affairs as part of Atlanta’s efforts to create a welcoming environment for everyone regardless of race, ethnicity or native country. The mayor also disclosed the Atlanta Police Department will create… Read More
10 Indicators That Immigrants Initiate Job Creation
40% of Fortune 500 companies were founded by immigrants or their children. Immigrants are more than twice as likely as the native-born to start a business. Immigrants are 13% of the US pop but started 28% of US companies founded in 2011. Immigrants… Read More
10 Reasons Your Wallet Should Want Immigration Reform
Immigration reform would increase real GDP by 5.4% over the next 20 years. A 5.4% increase in GDP would add $1.4 trillion to the U.S. economy. Immigration reform would also decrease federal deficits by $1.2 trillion over the next 20 years. Read More
Hope for the unfinished business of immigration reform
Conventional wisdom has it that immigration reform is dead. I couldn’t disagree more. Though action on reform this year is unlikely, the political calculus is shifting, creating a window of opportunity in 2015. Even so, stubborn myths persist about immigration reform, namely, that Republicans don’t support it, that it’s bad… Read More
British Entrepreneur Moves to U.S. to Found Successful Audiovisual Equipment Company
After transferring his already successful audiovisual company from Europe to the United States, Mark Wilkins founded Stampede, a large distributor of audiovisual equipment, here in the United States, based in upstate New York. When Mark Wilkins, the CEO of Stampede, moved to the United… Read More
U.S. competitiveness tied to solving immigration problems
President Barack Obama is expected to announce momentous decisions soon on the use of executive authority to help the more than 60,000 children fleeing Central American violence who have crossed into Texas, and an equal number of families currently being held at the border. While Congress… Read More
Restauranteur: Meaningful immigration reform needed this year
In Oklahoma, immigrants are making a significant mark in starting new businesses. Despite accounting for 5.5 percent of the state’s population, 7 percent of the state’s business owners are foreign born. Oklahoma’s foreign-born entrepreneurs generate more than $475 million in annual revenue, according to the Partnership for a New American… Read More
There’s reason for optimism on immigration
The drive to reform America’s broken immigration system suffered a major blow last week when neither the U.S. Senate nor the U.S. House could manage to agree on an appropriation to deal with the thousands of children, many traveling without their parents, who are arriving at our southern border every… Read More
French Founder Launches Second Company in U.S. for Better Opportunity
Stéphane Le Viet, who earned a Master’s in applied mathematics at Harvard University, started a U.S.-based company while still living in France that helps other companies advertise jobs on Facebook. After earning a hefty round of financing, he’ll be moving to the United States on an investor visa… 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.
