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.
New Fortune 500 List Shows America’s Economic Success Relies on Immigrants
America’s economic success is built on the world’s best and brightest coming to our shores bringing ingenuity, creativity, and determination. From Wall Street to Main Street, businesses started by immigrants have helped the U.S. economy enormously. The history of immigrant entrepreneurship stretches back to the country’s founding. Famously, the designer… Read More
New American Fortune 500 Report Reveals Impact of Immigrant Entrepreneurship
The American Immigration Council released today a report that examines the role of immigrant entrepreneurs and their children in America’s economic success story. The report, “New American Fortune 500 in 2022: The Largest American Companies and Their Immigrant Roots,” found that 43.8%, or 219 companies, in this year’s Fortune 500 list were founded by immigrants or their children. Read More
Mohamed Al-Hamdani
In 1990, when Mohamed Al-Hamdani was eight, he and his family fled Iraq. Al-Hamdani’s father was part of the uprisings against Saddam Hussein, and the country was no longer safe for them. After two years in a Saudi Arabian refugee camp, they were resettled in Dayton, Ohio. It wasn’t… Read More
New Report Shows Immigrants in Montgomery County Paid Over $219 Million in Taxes and Held Over $562 Million in Spending Power in 2019
DAYTON, OH, MARCH 15, 2022 – A new report, New Americans in Montgomery and the City of Dayton, by New American Economy — now the American Immigration Council — in partnership with the City of Dayton Human Relations Council (HRC),… Read More
The House Passes the America COMPETES Act, Including Immigration Reforms to Help the U.S. Economy
The House of Representatives passed an economic competitiveness bill on February 4 that includes several immigration provisions. The bill is called the ‘‘America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022’’—or the America COMPETES Act of 2022. This bill (which is more than… Read More
U.S. House Moves Immigration Reform in Bill Aimed at Increasing American Competitiveness and Helping Economy
The U.S. House of Representatives passed an economic competitiveness bill focused on advancing the United States’ innovation and global competitiveness, which also proposes reforms to U.S. immigration law to help attract and retain immigrant talent. Read More
Jordanian Immigrant Establishes Printing Company in New Jersey
Alia SuqiOwner, Nextwave Web Growing up in Jordan as one of 14 siblings, Alia Suqi always knew she’d have to work hard to find her own way. Her parents were supportive, but there weren’t many opportunities for a young woman in Jordan — so after finishing high school… Read More
Italian Immigrant Becomes Owner of Auto Body Shop in New Jersey
Mario TommolilloOwner, Mario’s Classic Auto Body of Paterson On the morning that Mario Tommolillo arrived in the United States from Italy, his parents woke him up at 5 a.m. to see the Statue of Liberty. It was 1967, and the family entered New York harbor on the SS… Read More
New Report Shows Immigrants in the City of Los Angeles Paid nearly $15 Billion in Taxes and Held More Than $38 Billion in Spending Power
Los Angeles, CA – A new report released today by New American Economy in partnership with the City of Los Angeles Mayor’s Office of Immigrant Affairs and the Coalition for Humane Immigrant Rights (CHIRLA) underscores the crucial role immigrants in… Read More
New research shows immigrants across Texas are driving population growth and helping metros meet their rising labor needs
AUSTIN, TX – New research released today by Texans for Economic Growth, a statewide 110-member business coalition powered by New American Economy (NAE), underscores the critical role immigrants across Texas play in population growth, business creation, and reviving the manufacturing sector. A series of seven reports found… 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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