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.
Entrepreneur from Argentina Helps Keep Jobs in Michigan
Natalia Kovicak was 22 when she met her future husband on a beach in Mexico. She had a bachelor’s degree in human resources and public relations from the University of Palermo and a good job with the Coca-Cola company in Buenos Aires. She had also launched her own event-planning business. Read More
Entrepreneurs Raised in Mexico Give Back through Business Training
Although Ruben Ramos was born in the United States, his family returned to their village in the Sierra Madre Mountains, in Mexico, when he was a baby. When they moved back to the States—to Chicago then Grand Rapids—Ramos was 10 years old and didn’t know a word of English. “I… Read More
Grocery Business Started by Indian Immigrants Thrives in Grand Rapids
When Sonal and Ramesh Patel built a house in Cascade, in southeast Grand Rapids, in 2011, they quickly noticed something missing: an Asian grocer on that side of town. The couple, from a small town in Gujarat, in western India, had been in West Michigan since 2004, when Ramesh was… Read More
Undocumented Immigrant from Mexico Helps Houston Students “Reach Their Dreams, Too”
Carlos Sotelo was born in Mexico and brought to Houston undocumented as a baby. His parents worked low-income jobs and, after his father passed away suddenly when Sotelo was nine, his mother raised him alone in near-poverty. But Sotelo persevered. He worked hard in school, became a DACA recipient in… Read More
Immigrant to Denver Founds Dragon Boat Festival that Attracts 120,000 Attendees Annually
When Taiwanese Chinese immigrant Ding-Wen Hsu followed her engineer husband from Iowa to Denver after he received a job offer as a hydrologist, she admired the abundant Colorado sunshine and the beautiful Rocky Mountain landscape. But it was the welcoming attitude of Denverites that inspired her to stay for… Read More
Immigrant from China Builds Business in Seattle to Aid Other Immigrants with Naturalization
Two years ago, Chinese native Xiao Wang founded Boundless Immigration, a Seattle-based business that has helped over 30,000 immigrants apply for green cards and go through the naturalization process efficiently and economically. He was inspired by his own parents’ story: When they were graduate students in electrical engineering and… Read More
Naturalized Citizen from Somalia Employs 50 in Minneapolis Restaurants
Abdirahman Kahin came to the United States in 1996 seeking asylum from Somalia. Today, he is a successful entrepreneur and the owner of Afro Deli, a fast-casual restaurant that serves a fusion of African, Mediterranean, and American food, with two locations in Minneapolis. He also co-owns Campus Cafe, a Turkish… Read More
Portland Press Herald: Report touts immigrants’ economic contributions to Greater Portland
A new report highlights the growing importance of immigrants in Greater Portland’s economy. Foreign-born residents accounted for 75 percent of the population growth in the Portland-South Portland region from 2011 to 2016, according to the report, which was prepared by the group New American Economy and released Friday. Read More
Foreign-Born Residents Contributed $1.2 Billion to Portland Metro Area GDP in 2016
PORTLAND, ME – Immigrants in the Portland, ME metro area contributed $1.2 billion to the area’s GDP in 2016 and paid $133 million in federal taxes and $62 million in state and local taxes, according to a new report by New American Economy (NAE), in partnership with the Portland… Read More
Entrepreneur Couple from Albania Spreads Good Will Through Coffee
The chance of winning the diversity visa lottery is bitterly low—about one percent. Mateo Hodo’s family won the lottery, granting them U.S. residency, in 2002, and moved from Albania to Michigan and, later, Maine. Alba Zakja won the lottery in 2009, and moved to Maine to be near Mateo,… 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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