Immigrants Create Billions For The US

The big picture: No matter where they relocate, immigrants frequently have more capital to start new enterprises than native-born citizens due to personal savings and family loans, the National Bureau of Economic Research has found.

Why immigrants are more likely to start small businesses:

• Some economic researchers suggest that cross-cultural experience helps “internationally mobile individuals to develop skills and knowledge that augment their ability to identify entrepreneurial opportunities.”
• Other studies theorize that discrimination in the labor market pushes immigrants to start their own ventures, per the Harvard Business Review.

“Outsiders face a tough struggle fitting into a new culture. They must figure out how to deal with, and overcome, frustration, loneliness and a steep learning curve.

And that’s why immigrants make such great entrepreneurs—they’re once again outsiders facing many of the same kinds of obstacles. Been there, done that.”

— Adrian Furnham, Wall Street Journal

By the numbers:

• 1 out of every 5 entrepreneurs in the U.S. is an immigrant.
• Approximately 3.2 million immigrants run their own businesses, says NAE, a group that supports immigration.
• These businesses generate $1.3 trillion in total sales and $405.5 billion in tax revenue annually.
• Almost 8 million Americans are employed at immigrant-run businesses, according to NAE.
• Nearly half of all immigrant-owned startups are in accommodation and food service, retail trade, professional and technical services, says the National Bureau of Economic Research.
• In 2012, immigrants started 40% of new businesses in California, New Jersey and New York.
• These states have some of the largest immigrant populations in the country, the National Bureau of Economic Research found.
• Latino immigrants are 40% more likely to start businesses than American-born Latinos.