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.
Supporting STEM Education Where It’s Most Needed
Geography is a topic often lost in national-level immigration policy and the ensuing conversations around comprehensive reform. We frequently hear statistics cited at the national level. However, all too often, data at the metropolitan and local level – where the challenges and opportunities of immigration policy play out – are overlooked in policy debates. Read More
The Sooner Immigrants Become Citizens, the Better it is for the Economy
As lawmakers negotiate the contours of an immigration reform bill, they should keep in mind that the granting of legal status to undocumented immigrants would be a boon for the U.S. economy—and allowing undocumented immigrants to eventually become U.S. citizens would be an even bigger boon. Such is the finding of a report from the Center for American Progress (CAP), entitled The Economic Effects of Granting Legal Status and Citizenship to Undocumented Immigrants. The report was authored by Robert Lynch, a Visiting Senior Fellow at CAP and the Everett E. Nuttle professor and chair of the Department of Economics at Washington College, and Patrick Oakford, a Research Assistant at CAP. The authors explain succinctly why legalized immigrants and newly minted U.S. citizens are so economically valuable: Read More
Why Regional Economies Need Immigration Reform
Comprehensive immigration reform and its array of issues is a hot topic of discussion these days at the national level. Yet while those in Washington continue crafting proposals, states are most impacted by the country’s current outdated immigration system and are making the economic and moral case for reform, as a recent Chicago Council on Global Affairs report highlights. Read More
The Promise and Challenges of Family-Based Immigration
Today the U.S. House Committee on the Judiciary is hosting a hearing on “The Separation of Nuclear Families under U.S. Immigration Law”. The issue to be addressed relates specifically to the obstacles that many legal permanent residents (LPR) currently living in the United States face when they try to bring their immediate relatives to the country. While there are neither country nor yearly caps for immediate relatives (currently defined as opposite-sex spouses and minor children) of U.S. citizens who want to immigrate to the United States, there are only 87,900 immigrant visas available each year for immediate relatives of LPRs. In addition, no country can receive more than 7 percent of the visas available for all immigration categories in a fiscal year. In 2012, for example, the maximum number of visas available per country was 47,250. And because the demand for visas in some countries is much larger than the number of visas available, some LPRs have to wait several years to be able to bring their spouses and unmarried children. Read More
State Level Immigration Legislation and the Essential Economy
We often take for granted the important role “behind the scenes” workers – farm labor, restaurant work, and home health care – play in driving our economy. That’s one of the many conclusions of a new report from the Essential Economy Council, which studied the economic and social value of industries that make up what they have coined the “essential economy.” The report identifies six industrial sectors important to our daily way of life, including: agriculture and poultry; hospitality and restaurants; light construction and landscaping; personal care and assisted living; building maintenance and facilities service; and distribution and logistics. For the state of Georgia, the essential economy is a significant component of the state’s overall economy. In particular, the essential economy contributed 12 percent ($49 billion) to Georgia’s GDP in 2010; contributed over $114 million in sales tax in 2011; employed just under one million out of 3.7 million workers in Georgia in 2011; and is present in every country in the state. Read More
Skilled Immigrants Come Through All Immigration Channels
Note: Today’s blog features the oral testimony of Benjamin Johnson, Executive Director of the American Immigration Council before the House of Representatives, Committee of the Judiciary, Subcommittee on Immigration and Border Security today. Mr. Chairman and members of the committee, thank you for the opportunity to appear before you today and provide testimony on behalf of the American Immigration Council, a non-profit educational organization that for 25 years has been dedicated to increasing public understanding of immigration law and policy and the role of immigration in American society. Read More
Building Bipartisan Bridges in Congress for High-Skilled Immigration and Entrepreneurship
Tomorrow, the House of Representatives will hold a hearing to discuss, “Enhancing American Competitiveness through Skilled Immigration.” The hearing is likely to highlight both the bipartisan support for high-skilled immigration reform, and a series of new bills that would increase the supply of STEM visas. Read More
Business and Labor Announce Breakthrough on Immigration Reform
One of the most contentious issues that has stymied past immigration reform proposals is the divide between business and labor over how many and under what conditions the U.S. should admit new immigrants into our labor force. Also known as the “future flow” issue, the conflict lies in the tension between business’ desire to recruit foreign workers and labor’s desire to ensure workforce protections for those working in the U.S. Read More
Can A Nation Have Too Many Smart People?
A February 8 op-ed in the New York Times entitled “America’s Genius Glut” argues that America already has too many high-tech workers, and thus does not need more scientists and engineers from abroad. It is a surprising claim that is at odds not only with the empirical evidence, but is out of touch with the dramatic shift in recent years towards a knowledge-based global economy. The United States is not actually suffering from a surplus of intelligent people, nor is it being economically drained by the presence of intelligent people who were born in other countries. In fact, the U.S. high-tech economy would not exist in its present form if not for the contributions of innovators and entrepreneurs from every corner of the globe. Despite arguments to the contrary, scientists and engineers who come to this country on H-1B visas are an integral part of that high-tech economy. Read More
Survey: Asian Americans Concerned with Legalization, Family Backlogs
In the current debate, immigration is often depicted as a Latino issue. This is partially because just over half of America’s foreign-born population is from Latin America and the Caribbean, and the current political climate around immigration is largely seen as being driven by Latino turnout for Democrats in the 2012 election. But this depiction glosses over the millions of immigrants – documented and undocumented – who hail from other parts of the globe. 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
All gifts are matched dollar for dollar
No one should face the immigration system alone
