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.
Conservatives Need to to Fix the Broken U.S. Immigration System
Sal Russo is the co-founder of the Tea Party Express. The U.S. immigration system is flawed and broken. Conservatives should be at the forefront of reform so the law reflects the just interests of the United States, not misty-eyed ideals of some of the liberal do-gooder reformers. What is good… Read More
It’s Time for Immigration Reform
Simply stated, immigration reform is about economic growth. In Washington state alone, if undocumented immigrants followed a path to legal citizenship it would generate more than 12,700 jobs and more than $1.1 billion for the state, according to Regional Economic Models, Inc. Vital industries are facing substantial labor… Read More
The case for a more immigrant-friendly, diverse Cincinnati
This month, the Brandery, a nationally top-10 ranked accelerator located in Over-the-Rhine, hosted a fast-paced roundtable discussion on global talent attraction, immigration reform and the need for a more diverse Cincinnati. The event was part of a national series called #iCodeImmigration: Acceleration Immigration Reform brought together locally by… Read More
Guest Opinion: Reform necessary to encourage immigrant entrepreneurs
Meaningful immigration reform will have a significant impact on job growth and the economy. According to the Kauffman Foundation, immigrants are twice as likely to start a new business as native-born Americans. Unfortunately, our current immigration policies make it exceptionally difficult for foreign entrepreneurs to establish these new businesses. We… Read More
Cincinnati region lags on immigration
Every year at the great universities in this region, we hand degrees to hundreds of students from around the globe. At the University of Cincinnati alone this spring, nearly 500 of the graduates came from more than 70 countries. Few of these graduates stay here; some must return to their… Read More
Immigration boosts business and economic growth
Many Virginians recognize the important contributions local businesses make to the state’s economy — entrepreneurs create jobs and generate revenue that benefit both the worker and consumer. Few people realize, however, how large a role immigrants play in driving this growth. Some of Virginia’s largest companies were founded by immigrants… Read More
Former NYC Mayor Bloomberg Group Rolls Out Ads Pushing Immigration Reform
Former New York City Mayor Michael Bloomberg may be out of office, but at least one project he actively participated in is still going strong. A group he backs, the Partnership for a New American Economy, is rolling out an ad campaign to push Congress to pass comprehensive… Read More
Bloomberg-linked group launches new ads for immigration overhaul
A group backed by former New York City mayor Michael Bloomberg is launching a new round of ads to encourage Congress to overhaul the nation’s immigration system this year. And in an effort to target Washington insiders, the ads from the Partnership for a New American Economy will start appearing… Read More
Cincinnati Start-up Community Talks Immigration
Panel touts Cincinnati’s successes, but cautions D.C. inaction will hinder continued growth CINCINNATI, OHIO – Influential members of Cincinnati’s vibrant start-up and tech scene joined together this morning at one of the country’s hottest seed accelerators, The Brandery in Over-the-Rhine for a fast-paced roundtable discussion on global… Read More
Cincinnati startup community advocates for immigration overhaul
As changes to the United States’ immigration policy are being debated on Capitol Hill, a group of Cincinnati startup and tech luminaries, business leaders and economic development forces met at the Brandery on Wednesday morning to explain why the topic is important locally. Brandery co-founder Rob… 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.
