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.
Bloomberg: Lack of worker visas stalled economic growth in Research Triangle
The technology community in North Carolina and across the country continues to press for an immigration overhaul. Their latest effort involves a new self-funded report that argues existing visa lottery caps hurt U.S.-born tech workers in the Research Triangle. The pro-overhaul group, Partnership for New American Economy, released a … Read More
This study showed that high-skilled immigrants create jobs for Americans
The tech industry has become one of the biggest interests lobbying for immigration reform, for a straightforward reason: they say they can’t find enough qualified workers here in the US. If the government issued more high-skilled visas, they say, they could hire immigrants… Read More
Time for Congress to modernize immigration system
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. Wisconsin… Read More
Young workers, entrepreneurs need pro-growth reform
A great thing about my job is I spend time working with Florida’s higher education institutions. Our colleges and universities create graduates and spur economic vitality. Florida has an excellent balance of both private and public institutions working in service for the people of Florida. Higher education is the springboard… Read More
More Than A Third Of The Top US Tech Companies Were Founded By People Born Outside The Country
In this year’s “state of the internet” presentation, Kleiner Perkins partner Mary Meeker noted that more than a third of the top tech companies in the U.S. were founded by foreigners. According to a report from the … Read More
Florida needs immigration reform
The U.S. immigration system is broken and failing our economy. Meaningful immigration reform will ensure our nation’s security and drive economic growth. This is why Florida business leaders, many of them conservatives, are asking Congress to tackle immigration reform this year. In the state of Florida, 3.6 million residents are… Read More
CEO of Melaleuca works to pass immigration-reform legislation
IDAHO FALLS, Idaho – Melaleuca CEO Frank VanderSloot is working with Republicans and Democrats to try to get immigration-reform legislation passed. VanderSloot said the United States should allow immigrants to work, cross the border freely and pay taxes. One way to do that is with good legislation. Read the… Read More
Tech Leaders Join the Fight for Immigration Reform
For decades, immigrants from all parts of the world have come to the United States, bringing with them their unsurpassed talents and ground breaking innovations. This entrepreneurial spirit was first fostered by our founding fathers and later matched by such brilliant minds as, telecommunications magnate Alexander Graham, Google founder and… Read More
Congress needs to act with urgency to fix badly broken immigration system
Everyone in Congress agrees that we have an unsustainable immigration crisis. This crisis includes porous borders, poor visa expiration controls, and a labor quota system that does not respond to the labor and production needs of our economy and is, in fact, detrimental to our country in its current state. Read More
Tea Party Express Co-Founder Backs Immigration Overhaul Efforts
The co-founder of and chief strategist for one of the biggest tea party organizations is coming out in support of overhauling the nation’s immigration laws, a bold statement that could energize advocates and alienate conservatives. Sal Russo of the Tea Party Express broke the news in an op-ed titled… 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.
