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.
Business and Religious Leaders Come Together to Champion Immigration Reform
Immigration reform is an undertaking of such importance that it should transcend partisanship. That was the fundamental message of the business and religious leaders who gathered together yesterday at a press conference organized by the National Immigration Forum. The press conference was part of a campaign called Forging a New Consensus on Immigrants and America, which describes itself as “a growing and diverse constituency of conservative, moderate and progressive leaders that is determined to go beyond the rhetoric and find common ground for practical solutions.” The event comes on the heels of an announcement late last week by Thomas Donohue, President of the U.S. Chamber of Commerce, that a broad coalition of business, labor, religious, law enforcement, and ethnic organizations has coalesced around the cause of immigration reform. Read More
Lawsuit Uncovers USCIS’ Double Standards in H-1B Program
For the past several years, U.S. Citizenship and Immigration Services’ (USCIS) H-1B visa review and processing procedures have caused confusion and concern among U.S. businesses that turn to highly-skilled temporary foreign workers in specialty occupations to operate successfully. In newly-uncovered documents, it appears that instead of supporting small businesses that attempt to hire highly-skilled foreign workers, in many cases, USCIS discourages their success by subjecting them to a near presumption of fraud. Read More
The U.S. Economy Still Needs High-Skilled Immigrant Workers
With the U.S. economy in the midst of a prolonged slump, it’s hard to believe that a labor shortage exists anywhere in the country. But that is precisely the case when it comes to the high-tech industries which depend upon highly skilled scientists and engineers. The United States has long faced a dilemma in this respect: the U.S. educational system is not producing high-tech professionals in numbers that are sufficient to meet labor demand. That is one reason so many U.S. scientists and engineers are immigrants. And it is one of the reasons that even more U.S. scientists and engineers would be immigrants if not for the arbitrary limits imposed by the U.S. immigration system. For the sake of the U.S. economy’s recovery and long-term competitiveness, lawmakers should revise the antiquated rules that currently govern how many and which high-tech professionals from abroad are allowed to work in the United States. Read More
America: Start-Up Nation of Immigrants
AOL co-founder Steve Case brought an important message to the National Strategy Session on Immigration in Washington, D.C. this week: America is a start-up nation. Over the last 200 years, America has built the most dynamic economy in the world through the hard work and innovation of its entrepreneurs. Read More
Immigrants May Hold the Key to Urban Renewal in Baltimore
In an attempt to reverse decades of population decline, Baltimore Mayor Stephanie Rawlings-Blake has launched a high-profile effort to attract “new Americans” to the city. The theory is that these new Americans—that is, immigrants—will bring the skills, entrepreneurship, and tax base needed to revitalize blighted neighborhoods that are now full of boarded-up buildings rather than thriving businesses and family homes. The available evidence suggests that immigration can indeed be a powerful force for urban renewal. But most immigrants will not be drawn to a new city simply by a welcome sign. It is likely that they look for some signs of revitalization before they take the risk of uprooting their families and moving to a new place. Read More
Foreign Students Add Billions of Dollars to the U.S. Economy Each Year – And That’s Just the Beginning
Most people don’t think of foreign students as an economic resource, yet that is precisely what they are. Each year, students from other countries spend billions of dollars in the U.S. economy, pumping money not only into the colleges and universities they attend, but the surrounding businesses as well. In addition, many foreign students go on to become highly innovative scientists, engineers, and entrepreneurs who add value to the U.S. economy in myriad ways that are often difficult to quantify. Given the economic value of the education they receive in U.S. universities, it is unfortunate that so many foreign students are forced by our nonsensical immigration policies to return to their home countries rather than putting their knowledge to use in this country. Read More
The Business Plan for American Revival
Wall Street Journal November 13, 2012 Four years ago, it was said that the incoming Obama administration aspired to the dynamic that existed in Abraham Lincoln’s cabinet, where former competitors and antagonists came together to help the country through the Civil War. If Doris Kearns Goodwin’s “Team of Rivals”… Read More
Understanding the Important Symbolism of the Maryland DREAM Act Victory
While much of last week’s energy was focused on Latino voter turnout in the Presidential race— and the subsequent recognition that immigration reform was all but inevitable—there was another major victory for immigration policy that came out of Maryland. Voters in the state supported through referendum their legislature’s decision to provide in-state tuition to undocumented students. This was the first vote of its kind in the nation and one where African-American voters were an important voting bloc in support of the measure. Read More
Nativist Group Releases Hopelessly Flawed Report on Immigrants and Job Creation
By Patrick Oakford, Research Assistant for the Economic Policy Team at the Center for American Progress. Last week the Center for Immigration Studies (CIS) released a shocking report claiming that most new jobs created under President Obama have gone to immigrants. Aside from the sheer incorrectness of the claim, being founded on flawed methodologies, CIS perpetuates a hateful “us versus them” discourse at a time when we should be focused on creating more and longer-lasting jobs. Read More
Immigrant Entrepreneurs Open for Business
Des Moines Register November 3, 2012 Betty Garcia embraces the term “immigrant entrepreneur” as a badge of pride. She says her family hasn’t had it as easy as native-born Americans in turning Tortilleria Sonora, whose name hints at both the product and her family’s origins, into a successful business. 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
