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.
FWD.us and New American Economy Host #iCodeImmigration in NYC
Leading Entrepreneurs, Investors, Technologists, and Policy Experts Will Discuss the Critical Need for Immigration Reform New York, NY – FWD.us will join with New American Economy (NAE) to host #iCodeImmigration events in cities across the country premiering in New York City on Monday, April 21, 2014 at… Read More
An immigrant’s plea for reform
Moving from Denmark to Butler County in the early spring of 2006 was a difficult transition. My wife and I uprooted our two young children and left family and friends. However, we moved for an excellent opportunity. The Danish firm I work for, IceTech International, a world leader in manufacturing… Read More
It’s All About Talent – Immigration Reform
As a venture capitalist, I spend my time thinking about talent. Who are the best people in the world to invest in? How do I help them attract the best people in the world to team with them to build their companies into massive successes from scratch? That is why… Read More
Better Business: How Hispanic Entrepreneurs Are Beating Expectations and Bolstering the U.S. Economy
New American Economy and the Latino Donor Collaborative’s new report, “Better Business: How Hispanic Entrepreneurs Are Beating Expectations and Bolstering the U.S. Economy,” shows how the number of Hispanic entrepreneurs in America has grown exponentially over the past two decades, powering the economy during the recent recession. Hispanic immigrants… Read More
Rosa Macias: Creating a Furniture Store Empire out of Humble Beginnings
When Rosa Macias and her husband, Venancio, moved to the United States in 1990, they faced some daunting hurdles. Rosa, a trained accountant, says she spoke “not a word of English” and had only been to the country once, to visit Disneyland. But the couple had a powerful motivation. “We… Read More
Edith Barco and Leo Esquivel, Co-Owners, El Buen Gusto Restaurant
Edith Barco, a restaurant owner in Central Iowa, knows a thing or two about sticking with a dream. Barco, an El Salvadorian immigrant, originally came to the United States in the late 1990s, taking a job—like many of Iowa’s immigrants—in one of the state’s meatpacking plants. But her real passion… Read More
Carmen and Jose Talavera: Starting a Family Grocery Business
Jose Talavera is someone who knows the virtues of hard work. Immigrating to the US from Mexico in 1977, he toiled for years doing difficult painting, plaster, and renovation jobs in California. In the last few years, however, he and his wife Carmen took on another challenge: In 2008, while… Read More
Eduardo Gonzalez: Turning a Love of Steel Into a Manufacturing Empire
Eduardo Gonzalez, the founder and CEO of a successful steel company, says he learned a lot watching his parents flee Cuba in the early 1960s. His parents, who’d been attorneys, arrived in America and had to start from scratch, ultimately finding new careers as Spanish literature professors. “Seeing your parents… Read More
Report Shows Surge in Rate of Hispanic Entrepreneurship
Hispanic immigrants now more likely to be entrepreneurs than broader U.S. population Washington, DC — New American Economy and the Latino Donor Collaborative today released a new report showing how the number of Hispanic entrepreneurs in America has grown exponentially over the past two decades, powering… Read More
American Workers Can’t Wait Another Minute
As Congress returns to Washington in a few days, no more pressing issue faces leaders in the House of Representatives than immigration reform. In 1990, Congress recognized how important immigration was to our economy and passed the Immigration Act of 1990. This law created a new visa category tied to… 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
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