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.
It’s Immigrant Entrepreneurship Month in Massachusetts!
Massachusetts is no stranger to the many benefits immigrant entrepreneurs bring to communities. From family owned restaurants and shops along small town main streets, to large Fortune 500 companies, immigrant-owned businesses make sizeable contributions to Massachusetts. And as a growing number of places around the country make efforts to attract and welcome immigrants, Massachusetts continues to expand the state’s efforts. October 15 marked the start of the third annual Massachusetts Immigrant Entrepreneurship Month, which will officially run through November 15. State groups—including the Immigrant Learning Center (ILC), the New Americans Integration Institute at the Massachusetts Immigrant and Advocacy Coalition (MIRA), and the state’s Office for Refugees and Immigrants—are leading the initiative, which recognizes the contributions of immigrant business owners and innovators to Massachusetts’ economic development. Read More
From Coast to Coast, Immigrants Drive Local Economies
Immigrant entrepreneurship has transformed Atlanta’s northeastern suburbs along and near Buford Highway into “International Village” – an area filled with immigrant restaurants, markets, specialty stores, and other businesses. Through ventures such as Chinatown Square, Asian Square Mall, and Plaza Fiesta immigrants have “economically and socially revived an area that faced economic stagnation and population decline.” As one researcher noted, “the five-mile stretch of highway running through Chamblee, Doraville, and Norcross constitutes the greatest concentration of ethnic-owned businesses in the southeastern U.S.” Read More
White House Honors Local Groups Leading the Way to Welcome Immigrants in Their Cities
Thousands of immigrants every day demonstrate a commitment to being part of America by becoming naturalized citizens every day. These Americans by choice often make huge sacrifices to move to the United State and become part of their community. But it also takes support from the local community to welcome new immigrants who want to establish roots in the area. Groups across the country are stepping up to fill that role and make their cities inviting to immigrants. Read More
Immigration is a Positive Force for Economic Growth in Cities
Posters on metro buses and trains in St. Louis will now welcome you to the city in 17 different languages, one of the many initiatives begun by the St. Louis Mosaic Project to create an atmosphere that welcomes and encourages immigrants to the area. Signs in the public transit system aren’t just designed to look pretty, however, but acknowledge that for many immigrants, particularly those new to the St. Louis region, this is their primary means of going to work or school, shopping, and taking part in all the community has to offer. “The Mosaic Project says a lot about where our region is going,” St. Louis County Executive Charlie Dooley said. “We want to be more diverse and see things from different points of view.” Read More
U.S. Must Confront Challenges of Attracting Global Innovation Talent
Across the United States, innovative industries in the science, technology, engineering, and mathematics (STEM) fields have driven economic growth and job creation nationally and in metropolitan areas throughout the country. And the human capital—the people who are leading these innovations—comes not only from homegrown talent but also from a global labor market and talent pool. The U.S. has a well-established innovation economy, similar to other developed nations. But certain challenges exist for countries to attract talent to fuel these industries. A new report from the Migration Policy Institute (MPI) describes the policy challenges related to attracting individuals from the global talent pool. The authors recognize human capital as “the one resource that can propel firms and economies to the top tier of competitiveness.” There have been undeniable increases in the supply and demand for skilled workers worldwide as more places continue to transition to knowledge-based economies with rising occupational skill requirements. As such, in addition to advances in OECD countries, the report notes that as developing countries continue to grow, and as their immigration policies “become less bureaucratic and cumbersome, a much greater choice of destinations will open up for the internationally mobile.” Read More
Labor Day Celebrations Should Also Pay Tribute to Immigrant Workers
Americans are observing Labor Day, which pays tribute to the many contributions and achievements of American workers. As celebrations are underway, the holiday offers an opportune moment to reflect on the very concept of American workers. In other words, who is an American worker? Where do immigrants—who contribute their talents and labor to the production of goods and services in the United States—fit into the picture? Read More
Immigrant Business Owners Continue to Contribute to Communities Across America
During the August recess, Members of Congress have been meeting with constituents in their home states and districts. During this time, many have likely dined at an immigrant-owned restaurant or used the services of an immigrant-owned business within their home state. The fact is, immigrant businesses are important in many communities across America. Immigrant entrepreneurs bring in additional revenue, create new jobs, and boost local and state economies. Indeed, immigrant entrepreneurs and innovators continue to make contributions throughout the U.S. Read More
Our Immigration System Must Encourage Foreign Entrepreneurs to Invest in the U.S.
Immigrants started 33 percent of U.S. venture-backed companies between 2006 and 2012 that went public, according to a new report from the National Venture Capital Association. The report, however, also noted that there is no reliable immigration program for foreign entrepreneurs, who must surmount enormous legal difficulties in order to come here to create businesses and drive innovation and job growth. Read More
Immigrant Entrepreneurs Help Build U.S. Economy One Company at a Time
Google, Intel, eBay, Yahoo!, Facebook, LinkedIn, SanDisk, Altera, Zoosk, Etsy, Tesla Motors. What characteristic does each of these well-known companies share? They each were either founded by an immigrant or have at least one immigrant founder. Now, a new report from the National Venture Capital Association highlights the profound impacts that immigrant entrepreneurs—like the immigrants who helped to found major U.S. corporations—have on our economy. Immigrant entrepreneurs start companies throughout America in many different industries, creating value and new jobs in the United States, and advancing U.S. innovation. Read More
Report: Immigration Bill Would Add Nearly 14,000 Jobs Per District
August 20, 2013 Jordan Fabian, ABC News The Senate’s immigration bill would add nearly 14,000 new jobs on average in each congressional district over the next decade, according to a new report. The new analysis is from the center-right American Action Network (AAN), which backs an overhaul of the… 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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