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.
Immigrant Entrepreneurs Open for Business
Des Moines Register November 3, 2012 Betty Garcia embraces the term “immigrant entrepreneur” as a badge of pride. She says her family hasn’t had it as easy as native-born Americans in turning Tortilleria Sonora, whose name hints at both the product and her family’s origins, into a successful business. Read More
What The Election Means To Silicon Valley
Silicon Beat November 3, 2012 Silicon Valley is and will continue to be the world’s epicenter of technology innovation and entrepreneurship. It’s very small but extremely diverse population of 2.9 million residents enjoy the second highest per capita income (only DC is slightly ahead) and highest educated people in… Read More
Enact Rational Immigration Policies
Omaha.com October 23, 2012 Few issues come as politically charged as immigration, but on the ground here in the Cornhusker State, we must consider immigrants through a different lens. Restaurants and food service are a $1.9 billion industry in Nebraska, one that depends on all 67,000 of its employees. Read More
Opinion: Skilled Immigrants Are Uptapped Assets for Regional Economic Development
National Journal October 17, 2012 What do Pittsburgh, Detroit, and Dayton, Ohio, have in common? Each of these cities has endured decades of shrinking population—and each has recently identified skilled immigrants as a vital component of a healthy economy. Their economic-development agendas recognize that attracting and retaining talented newcomers… Read More
Study Shows Immigration May Boost St. Louis Economy
St. Louis Public Radio October 17, 2012 A Saint Louis University economist thinks he has found a key to growth for St. Louis. Professor Jack Strauss presented his findings this afternoon from an economic study that shows a direct correlation between an increasing immigrant population and economic growth. The… Read More
DREAMing of Economic Growth
Center for American Progress October 12, 2012 During an election year dominated by concerns about our economy, policymakers and voters easily draw connections between domestic issues, such as education, Medicare, or tax policies, and the health of our economy. But so far public discourse hasn’t connected the dots between… Read More
Is Unwelcoming Immigration Law Choking The US Economy?
Mindful Money October 4, 2012 The US may have to make dramatic changes to its unwelcoming immigration system if the country is to hold onto its strong entrepreneurial culture. Research by the Kauffman Foundation argues that the country’s “unwelcoming” immigration system has led to a “reverse brain drain” that… Read More
Immigrant Entrepreneurship Has Stagnated For First Time In Decades, Says New Study
Forbes October 2, 2012 Immigrant entrepreneurs have always had a significant impact on U.S. culture and economy, and that continues to be true today. Immigrants started 28% of all new U.S. businesses in 2011, despite accounting for just 12.9% of the U.S. population, according to “Open For Business: How… Read More
New Report Shows Economic Benefits of Passing the DREAM Act
The Center for American Progress and the Partnership for a New American Economy have released a new study entitled, “The Economic Benefits of Passing the DREAM Act,” which finds that the passage of the DREAM Act would add $329 billion to the U.S. economy and create 1.4 million new jobs… Read More
Dream Act Would Bring In $15.9B To New York, Center For American Progress Claims
New York Business Journal October 2, 2012 New York is one of 12 states that would feel the greatest economic impact as a result of the Dream Act passing, according to a report released Monday by the Center for American Progress and Mayor Michael Bloomberg’s coalition, the Partnership for… 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.
