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.
Time to reform broken immigration system
As a professor of finance and economics at Northwest Nazarene University, I was glad to read of Wilder Mayor John Bechtel’s trip to Washington, D.C., to address the need to fix our broken immigration system. I could not agree more with him that there is no reason we… Read More
US Visa System Presents Obstacles for Brazilian Immigrant Entrepreneur
Pedro Sorrentino, a successful tech entrepreneur from Brazil, came to the U.S. to further his education and career. Hired by SendGrid.com right after graduating from Colorado University, Pedro was on the right track until visa difficulties forced him to return to Brazil. After much hard work and a… Read More
A Successful Hairstylist from France is Held Back by US Immigration System
Philippe Ma, a Hong Kong native who grew up in France, started a successful hair salon in the Orlando area. Unfortunately, the uncertainties of the E2 visa – which doesn’t put him on a path to getting a green card – have kept him from expanding and… Read More
Rupert Murdoch: Immigration Reform Can’t Wait
There is rarely a good time to do hard things, and America won’t advance if legislators act like seat-warmers. When I learned that House Majority Leader Eric Cantor lost his Republican primary, my heart sank. Not simply… Read More
An Immigrant from Mexico Makes a Big Impact through Nanofiber Technology
Karen Lozano, the first Mexican national to earn an engineering PhD from Rice University, invented a spinning technology while working at UT-Pan American that could manufacture nanofibers 900 times faster than technologies currently on the market. That technology eventually was incorporated into FibeRio Technology Corporation, a firm that’s… Read More
Immigration reform is essential to our economy
People like myself all over the country are asking Congress to pass substantive immigration or guest worker reform this year. The chorus of voices continues to expand. Recently the Tea Party Express even endorsed reform. Sal Russo, their co-founder, said “Congress must pass legislation that will fix our broken system. Read More
Time for US House action on immigration
As a businessperson vitally concerned about jobs and the economy, I continue to be surprised by the lack of urgency in the U.S. House of Representatives to deal with a crucial economic issue — immigration reform. I hope the recent primary election defeat of House majority leader Eric… Read More
Celebrate immigrant heritage month with reform law
As time grows short for the current Congress to pass much needed immigration reform legislation, I feel it is important for all of us to join in the recognition of June as Immigrant Heritage Month. When we reflect on the countless contributions — past and present — immigrants… Read More
Texas Conservatives Say Congress Must Break Gridlock on Immigration Reform
Now that House Majority Leader Eric Cantor has lost his primary to a Tea Party opponent, immigration legislation may be a tougher prospect. But in Texas, a number of Republicans say they’ll keep urging Washington to change immigration law. Included among those legislators is State… Read More
Why Eric Cantor’s Primary Defeat Has Few Implications In Texas
Republican House Majority Leader Eric Cantor’s opponent in the Virginia primary, David Brat, was relatively unknown but he challenged Cantor on his support for comprehensive immigration reform. Richard Murray, a political science professor at the University of Houston, said Cantor’s defeat means the chances… 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.
