Let’s start by reviewing some of the key immigrant business owners statistics.
Key Immigrant Business Owners Statistics
- There are 3.2 million immigrant entrepreneurs in 2019. [2]
- Immigrant business owners accounted for 21.7 percent of all business owners. [2]
- About 25% of recent US start-ups are created by immigrants. (Kerr and Kerr 2020)
- Workers in immigrant-founded businesses earn 4.1% more.[4]
- $1.3 trillion dollars generated by immigrant business firms.[2]
- An estimated 8.0 million people are employed by immigrant-owned firms, according to NewAmericanEconomy. [2]
- Nealry 3 million immigrants are self-employed.[2]
- Business formation rate per month among immigrants is 0.62% compared to .28% among the non-immigrant. [1]
- $435K annual sales and receipts generated by Immigrant-owned businesses. [1]
- With an average annual payroll of $253,000, immigrant-owned businesses hire 8.0 employees.[1] Immigrant business hiring stats
- Hispanic-owned firms make an average sales of $257,500, compared to $465,500 for Asian-owned businesses. [1] Hispanic immigrant VS Asian immigrant owned businesses Sales
- 7.1% of immigrant businesses export vs. 4.4% of non-immigrant firms. [1] Immigrant Business Export Stats
- Compared to non immigrant businesses (15.9%), over 20% of immigrant owned firms started with $50,000 or more.[1] Immigrant owned business startup capital
- 66% of immigrant owned business startup capital comes from personal or family savings.[1] Source of Startup Capital for Immigrant business
- Source of capital for expansions of business
- Among immigrants, 52.1% own a home against 70.8% of non-immigrants. [1] Immigrant Home Ownership Rate
- Personal and family savings are the most common source of funding for expansion of business by immigrant-owned firms.
- Overall, firms with an immigrant founder are roughly 35% more likely to have a patent than firms with no immigrant founders.
Did you know that immigrants make up a large percentage of small business owners in the United States? According to a report released by the Fiscal Policy Institute, immigrants are “twice as likely to start a business as the native-born population.”
More specifically, about 22 percent of businesses in 2017 were owned by immigrants and 17 percent employed at least one immigrant employee.
In this post, we’ll be taking a look at some of the most recent statistics out there on immigrant businesses along with some important information about these trends. It’s no secret that immigrants do very well in this country when it comes to starting and owning businesses.
Definition of Immigrant business
An immigrant business is a company that has been founded by immigrants.
Immigrant businesses can be found in any industry and their success stories include names such as Ali Babba, An Wang, Gunter Sachs or Elmer Winterstein.
An independent study in Canada revealed that 18 of the top 25 companies with either the highest revenue growth or greatest asset worth were founded by immigrants.
Immigrant Entrepreneurship Statistics
The number of immigrant business owners is on the rise, full stop. Immigrants who come to the U.S. tend to be innovative and entrepreneurial, and they are more likely than native-born Americans to start a business.
They also open significant numbers of businesses in neighborhoods where others might fear to tread. Immigrants don’t just bring unique cultural elements; they bring a broader sense of community, and the result is an economic gain for everyone—native-born, immigrant, and non-immigrant alike.
Immigrant business owner percentage
Even as more immigrants come to America, our culture becomes increasingly homogeneous. Immigrants can make a big difference in their new nations by owning businesses.
Immigrants hold nearly one-quarter of all U.S. firms, with Mexicans being the largest immigrant group. With this data, we can draw intriguing inferences like adult immigrants having greater levels of education and ethnic enclaves where immigrant populations thrive.
Total Annual Revenue for Immigrant owned business
When immigrant companies grow, the entire economy grows. Businesses like these employ nearly 8 million people, add to the tax base, and contribute significantly to America’s workers and talent pool. They are a driving force behind the nation’s economic growth. American business owners are vital to America’s success.
Immigrant Business Employment Statistics
In general, immigrant-owned firms contribute significantly to the growth of the American economy. In fact, they account for one out of every ten employees in the United States of America.
These businesses deserve our support because it is undeniable that immigrants are valuable to the United States economy, and because we must demonstrate to them that we, as Americans, recognize and appreciate their contributions to our country.
The more assistance these businesses receive from individuals like you and me, the more probable it is that we will be able to drive economic growth in the future.
Immigrant Business formation rates
Immigrants who enter the country legally go on to start businesses at a higher rate than their U.S.-born counterparts.
These statistics were published in the Journal of Migration and Human Security, and it appears that newcomers are just as ready to get out there and start their own businesses as the native-born people.
Immigrant owned business average annual sales
In the next five years, immigrants are projected to be responsible for growing the U.S. economy by $1.7 trillion in sales and receipts, the Bureau of Economic Analysis’ research shows. Immigrants can help restart America’s economy.
New York City Immigrant Small Business Statistics
Small businesses owned by immigrants account for 48 percent of the approximately 220,000 small firms in New York City.[3]
Immigration and entrepreneurship in the united states
About 25% of recent US start-ups are created by immigrants.. (Kerr and Kerr 2020)
Famous immigrant business owners
This list of famous immigrant business owners will have you thinking that immigrating is the best thing you could do to fulfill your dreams.
These entrepreneurs got started with a lot of courage and determination so you can too.
1. Sergei Brin
Brief History: Russian born, moved to America at age 6 with his family, now worth $40 billion as a 2nd generation immigrant.
2. Andrew Grove
Brief History: Bulgarian born, came to America in 1956 with only $20 and a medic bag, created the Intel corporation and is now worth over $200 million.
3. Ben Cohen
Brief History: English born, moved to America in the 90’s, created the hugely popular
Final Thoughts
It is undeniable that immigrant business owners have a significant impact on the US economy. Strong enough to assure the success of their enterprises and the businesses that hire them. They have the power to move the country forward, and that’s something worth keeping in mind.
These numbers should serve as a wake up call for Americans. Immigrants want to start businesses, but we aren’t making it easy for them. Our overly complex visa system and lack of entrepreneurship training aren’t exactly encouraging.
So, what’s the answer? Bring in more immigrants who will be working to create something of themselves while also producing jobs for others, because our economy requires it.
Resource
2.http://www.newamericaneconomy.org/wp-content/uploads/2016/12/Entrepreneur.pdf
3.ANHD
4.https://www.nber.org/system/files/working_papers/w27778/w27778.pdf
