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.
U.S. losing tech talent to Canada
The land of the free isn’t catering to talented techies quite like our neighbors to the north. So many entrepreneurs have given up on navigating the complicated U.S. immigration system and are heading to Canada to launch their startups. For Madhuri Eunni — originally… Read More
MIT Graduate from Greece Develops Cutting-Edge Technology in Wireless Electricity
Aristeidis Karalis always imagined a career in math and science. What he couldn’t have predicted was just how successful his research in wireless electricity transmission would become. In many ways, Aristeidis Karalis always knew he’d wind up spending some of his academic career in the United States. Read More
Kentucky’s vested interest in immigration reform
Following the new millennium, Kentucky witnessed staggering growth to its immigrant population. These residents brought business and a new labor force, strengthening the state’s economy. This reason alone necessitates that Kentuckians have a vested interest in immigration reform. Just consider national elections: If any Republican veers from the conservative stance,… Read More
Colombian PhD Candidate Hopes Congress Passes Reform Before His Visa Expires
Miguel Diaz is set to graduate from his PhD program this year, and he needs a job. Without a green card, however, he is having trouble finding companies who will take him seriously. Miguel Diaz, a native of Colombia, is set to graduate with a PhD in… Read More
The hidden immigration crisis: Keeping talent in the United States
With tens of thousands of unaccompanied minors already across the southern border and thousands more likely on their way, illegal immigration has become a flash point for many Americans. Some people feel compelled to embrace vulnerable children who fled Central America in search of a better life; others are deeply… Read More
Stanford MBA Grad Returns to Mexico to Start Two Successful Companies
Oswaldo Trava Albarrán, a graduate of Stanford Business School, lost his finance job in the heat of the 2008 financial crisis before he had secured an H-1B visa. Passionate about entrepreneurship, he decided to return to his native Mexico, where he has since founded two successful companies, Lo… Read More
A CEO’s argument for immigration reform
Americans are hungry for immigration reform. Four-fifths of voters want Congress to act this year, according to a poll released July 9 by the Partnership for a New American Economy, the Business Roundtable and the National Association of Manufacturers. Yet Congress has stated that it has… Read More
Sanity comes to immigration reform debate
A political odd couple recently held a press conference in Tallahassee on what has been a hot button issue for conservatives since Barack Obama was sworn as president — immigration reform. As part of a national day of action, Florida Chamber of Commerce and Florida Conference of Catholic Bishops joined… Read More
Congress: Act on immigration
Here’s a riddle for you. What do Rand Paul, Grover Norquist, Michael Bloomberg, Rupert Murdoch and Philadelphia Mayor Michael Nutter have in common? These prominent Americans from both sides of the political aisle all want Washington to do something about the immigration crisis. For years, America’s… Read More
German Immigrant Makes Notable Contribution to Biosciences
While a student at Cornell University, German native Jonas Korlach helped invent a machine that allowed scientists to read the entire human genome faster than they had ever done before. Although Korlach’s path to stay in the U.S. wasn’t an easy one, that invention eventually became… 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.
