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.
Prominent Oklahoma Republicans push for immigration reform
Citing billion-dollar losses in agriculture labor shortages, a group of current and past Oklahoma Republican leaders has asked the state’s congressional delegation to support approval of immigration reform. A letter sent Tuesday includes 13 signatures including former Gov. Frank Keating, former Tulsa… Read More
Oklahoma Republicans urge immigration reform
OKLAHOMA CITY (AP) – A group of current and former Oklahoma Republican elected officials is urging Congress to pass an immigration reform measure this year, saying the current system isn’t working for the state’s business owners and farmers. In a letter Tuesday to the state’s five U.S. Read More
Successful Belgian Entrepreneur and Stanford Graduate Worries About His Future in the U.S.
Pierre-Jean Cobut, a Belgian entrepreneur who always dreamed of moving to America, was accepted into Stanford Business School in 2012. While at Stanford, he and his Israeli-born classmate Elad Ferber developed a hi-tech wearable fitness device that landed them on a list of “Stanford Business… Read More
Virginia needs immigration reform
Virginians may be wondering how the prospects for immigration reform being effectively dead until 2016 will affect them. But the reality is that there’s resultant national impact. Just consider national elections: If any Republican veers from the conservative stance, it will be seemingly toxic for his… Read More
Farm business needs immigration reform: column
As a member of both the agricultural and business community in Wisconsin, the Wisconsin Agribusiness Council and its members have witnessed first-hand the benefits of new business generation in our great state. New business generation is inherently the best catalyst to driving job creation, especially in Wisconsin. Read More
Immigrant from Belgium Brings Innovation to American Classrooms, May Have to Return Home
Thomas Ketchell, the founder of a promising startup aiming to bring technology into the elementary school classroom, received a prestigious invitation to join an accelerator in America. Much to his frustration, he has been unable to get a work visa so he can work in the country more… Read More
Argentinian Hotel Manager Faces Uncertain Future of Visa Renewal
Eduardo Soffici, an Argentine immigrant, has built a successful hotel management company in Florida by buying up hotels in established chains, like Howard Johnson and Ramada. His E2 visa status, however, has kept him from expanding more. Eduardo Soffici, the founder of a successful hotel-management business, knows a… Read More
Utah legislators urge immigration reform
Some big-name Utah Republican legislators joined in a letter Tuesday urging the state’s congressional delegation to pass immigration reform this year — and said broad support for such action exists in the GOP. Senate President Wayne Niederhauser, House Speaker Becky Lockhart, House Majority Leader Brad Dee… Read More
Republican legislators, ex-senator call on U.S. House to pass immigration reform
SALT LAKE CITY — Leaders of the Utah House and Senate and former Sen. Jake Garn, R-Utah, are calling on Utah’s congressional delegation to pass immigration reform this year. “The current system is broken, and the United States cannot afford to wait any longer to fix… Read More
Immigration reform benefits Montana, America
Last summer, the Wall Street Journal called the immigration reform bill which passed the Senate with bipartisan support but stalled in the House, a “$4.6 Trillion Opportunity.” The editorial outlined that as 75 million baby boomers begin to retire, new immigrants in the workforce will be essential to Social… 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.
