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.
Without an H-4 EAD, Hotel Owner Could Lose Business, Fire U.S. Workers
Several times a week, Rakesh Patel makes the 98-mile commute from his home in Stevens Point, Wisconsin, to the Gateway Inn & Suites he owns and manages in Waupun. Although the drive can be taxing, Patel is thrilled to run his own business. “I love the… Read More
Waco Tribune Opinion: Waco Cha enables entrepreneurs to bring their world to downtown
If you have ever tasted the bubble tea, a cold drink made with iced tea, sweetened milk and normally sweet black balls or “pearls” made from tapioca, at the Waco Downtown Farmers Market, then you know it’s a tasty treat. Local therapist and Taiwanese-American Jaja Chen and her husband, Devin… Read More
New American Economy Endorses the Dream and Promise Act of 2019
NEW YORK – Today, Representative Lucille Roybal-Allard (D-CA), Representative Nydia Velázquez (D-NY), and Representative Yvette Clarke (D-NY) introduced the Dream and Promise Act of 2019 (H.R. 6), which provides permanent legal protections and a path to citizenship for Dreamers and Temporary Protected Status (TPS) holders. New American Economy issued the following… Read More
New Data Shows Houston’s Immigrants Generate More than a Quarter of the Area’s GDP
HOUSTON, TX – New data from New American Economy (NAE) shows that immigrants are responsible for more than 26 percent of the Houston metro area’s GDP. The report, which analyzes Census data from 2016, looks at immigrant contributions to Houston’s workforce, tax base, and major industries. The report was… Read More
Two years after the travel ban, a new study on the contributions made by Middle Eastern and North African Immigrants
Two years ago, on January 27, 2017, the Trump administration enacted a travel ban, which attempted to prevent visitors and immigrants from seven predominantly Muslim countries from coming to the United States. After the ban was challenged in court, the ban was revised and today’s iteration prevents new visitors and… Read More
Xconomy Opinion: America Should Welcome Immigrant Entrepreneurs
When I came to America in 1987, as a wide-eyed University of Texas grad student, I arrived with just a suitcase and a few hundred dollars — money that my mother, back in India, had scraped together by selling her beloved jewelry collection. Three decades later, I’m a successful biomedical… Read More
USA Today Opinion: My immigrant-owned small business would hire Americans. Trump’s proposal would keep it closed.
On the main street of downtown Frisco, Texas, the storefront space I have rented since September has yet to open for business. Along with my husband, Chandan Gaddam, I have purchased furniture and supplies for my art studio, and I’ve interviewed five U.S. citizens whom I’d like to hire. All together,… Read More
New American Economy and Off Ramp Films Debut Mahira Patkovich: A Refugee Rises
UTICA, NY – Today the bipartisan immigration reform group New American Economy and the documentary filmmakers Off Ramp Films debuted a new short film, Mahira Patkovich: A Refugee Rises. At a time when the United States is taking in fewer and fewer refugees, this film explores how crucial… Read More
The Kansas City Star Commentary: Kobach, Yoder campaigns said immigrants are scary. Their loss proves we’re changing
Over the past few weeks, we have watched as the Trump administration’s nativist, anti-immigrant ideology has brought our government to a grinding halt. The partial federal shutdown has directly impacted the well-being of more than 800,000 federal workers, their families and the American people who rely on government services. But… Read More
Trailer for Mahira Patkovich: A Refugee Rises
Meet Mahira Patkovich. Mahira’s family fled Bosnia and resettled in Utica, NY. She’s helping to revitalize downtown as a successful business owner, an MBA candidate and a mother to be. Watch her journey as she comes to call Utica home.
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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Make a direct impact on the lives of immigrants.
