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.
Report: Immigrants Drive United States’ Small Business Creation
Hispanically Speaking News August 17, 2012 According to a report from a bipartisan group of more than 450 mayors and business leaders from around the country known as the Partnership for a New American Economy, immigrants are increasingly more likely to start small businesses and create jobs. The report,… Read More
Murdoch, Bloomberg call for GOP to have courage on immigration
Wicked Local August 16, 2012 News Corp chairman and CEO Rupert Murdoch and New York Mayor Michael Bloomberg came to Boston Tuesday to hail immigrants’ contributions to our economic vitality. Touting the findings of a report by the Partnership for a New American Economy, the two cited the shortage… Read More
Immigrants own nearly 1 in 3 Florida businesses
Tampa Bay Business Journal August 15, 2012 Immigrants make up 19.4 percent of the population in Florida, but own 29.7 percent of all business in the state. Immigrants also started 36.7 percent of new businesses in Florida, according to a report from The Partnership for a New American Economy. Read More
Immigrant-Owned U.S. Companies Said to Generate $775 Billion
Bloomberg News August 14, 2012 Immigrant-owned businesses employ one in 10 U.S. workers in private companies and contribute more than $775 billion of revenue to the U.S. economy, according to the Partnership for a New American Economy. The businesses generate about $125 billion in payroll, the nonpartisan advocacy group… Read More
Mayor Bloomberg rightly renews push for comprehensive immigration reform
Daily News August 14, 2012 A wholehearted good luck to Mayor Bloomberg as he embarks on a fresh push to put immigration-friendly reform on the national agenda. To thrive, the U.S. must welcome the smartest and hardest-working people from all corners of the globe — while enabling those on… Read More
Immigrants founded 28% of new businesses in 2011
Minneapolis St. Paul Business Journal August 14, 2012 Immigrants started 28 percent of all new businesses in the U.S. in 2011, according to a report issued today by the Partnership for a New America Economy. The report, which is based on three sets of Census Bureau data, found that… Read More
Bloomberg comes to Chicago to spark immigration debate
WBEZ91.5 August 14, 2012 New York Mayor Michael Bloomberg wants to make immigration a bigger issue in the presidential race, and he’s making his case in the candidates’ hometowns. Bloomberg started on Tuesday at a forum in Chicago. The Partnership for a New American Economy hosted the forum and… Read More
Immigrants twice as likely to start businesses, report says
Silicon Valley, San Jose Business Journal August 14, 2012 Immigrants start more than one in four new businesses in the United States, and are more than twice as likely to start a company than people who are born here, according to a new report. The new “Open for Business”… Read More
Press Release: New Report Highlights the Significant and Growing Impact of Immigrant Entrepreneurs on New Business Generation and the Creation of American Jobs
Immigrants increasingly likely to start a business – responsible for 28 percent of new U.S. businesses in 2011 – while rate of new business generation among the native-born declines Immigrant businesses collectively generated more than $775 billion in revenue, $100 million in income, and employ… Read More
Open For Business: How Immigrants Are Driving Small Business Creation In The United States
The report, “Open For Business: How Immigrants Are Driving Small Business Creation In The United States,” analyzes the increasing importance of foreign-born entrepreneurs on U.S. economic growth and job creation. Picking up and moving to another country is brave and risky, so perhaps it is not surprising that immigrants are… 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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