Description
This particular brief file examines immigrant entrepreneurs creating jobs and strengthening the economy.
Immigrant
Entrepreneurs
Creating Jobs and Strengthening the Economy
ABOUT THIS REPORT
This report, authored by the Immigrant Learning Center (ILC) Public Education Institute of Malden,
Massachusetts, is a joint effort between the U.S. Chamber of Commerce and the Immigration Policy
Center of the American Immigration Council to explore job creation by immigrant entrepreneurs. This
report is a synthesis of ongoing research commissioned by the ILC, from leading universities, institutions,
and researchers. Prior to this report, the ILC has published seven research studies on immigrant
entrepreneurship, with ?ve speci?cally focusing on New England immigrant entrepreneurs in the
biotechnology and hospitality industries, and the others examining neighborhood businesses and the rise
of Asian-owned businesses (reports available at www.ilctr.org).
In fall 2010, the ILC collaborated with Babson College’s Center for Entrepreneurship to bring together
leaders studying immigrant entrepreneurship and immigrant innovators. At the conference, immigrant
business owners discussed their experiences, perceptions, failures, and successes (proceedings available
at www.ilctr.org).
ABOUT THE U.S. CHAMBER OF COMMERCE
The U.S. Chamber of Commerce is the world’s largest business federation, representing the interests of
more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers
and industry associations. The Chamber’s Labor, Immigration & Employee Bene?ts Division formulates
and analyzes Chamber policy in the areas of labor law, immigration, pension, and health care. The
division regularly participates in and chairs national coalitions to help de?ne and shape national labor,
immigration, and employee bene?ts policy.
The Immigration Policy Center
The Immigration Policy Center (IPC) is the research and policy arm of the American Immigration Council.
IPC’s mission is to shape a rational conversation on immigration and immigrant integration. Through
its research and analysis, IPC provides policymakers, the media, and the general public with accurate
information about the role of immigrants and immigration policy on U.S. society.
By
Marcia Drew Hohn, Ed.D.
Director, Public Education Institute at
The Immigrant Learning Center, Inc.
Editors
Lisa Atkins, Senior Manager, Immigration Policy, U.S. Chamber of Commerce
Michele Waslin, Ph.D., Senior Policy Analyst, Immigration Policy Center
January 2012
Immigrant
Entrepreneurs
Creating Jobs and Strengthening the Economy
Immigrant Entrepreneurs:
Creating Jobs and Strengthening the Economy
January 2012
Dear Readers:
The Labor, Immigration, & Employee Bene?ts Division at the U.S. Chamber of Commerce and the Immigration
Policy Center (IPC) at the American Immigration Council have long championed improvements to federal
policies that would create lawful status for immigrant entrepreneurs and permit foreign talent to work in the
United States, thereby facilitating job growth.
The need for a careful study of immigrants’ role in job creation has never been more relevant. Thus, the
Chamber and the IPC partnered with the Immigrant Learning Center (ILC) to produce this report, which
synthesizes ongoing research and analysis conducted by the ILC on immigrant entrepreneurship. The
report examines immigrant entrepreneurship in many different sectors, including neighborhood, growth,
transnational, and science and technology ?rms, and demonstrates how these immigrant businesses create
jobs for U.S. workers and contribute to America’s economic growth.
Sincerely,
Randel K. Johnson
Senior Vice President
Labor, Immigration, & Employee Bene?ts
U.S. Chamber of Commerce
Benjamin E. Johnson
Executive Director
American Immigration Council
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 6
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 1 Page 1
Executive Summary
T
here is widespread agreement across a number of key economic planning groups that immigrant
entrepreneurs create jobs and strengthen the economy.
1
Yet, the U.S. immigration system often forces out
immigrant entrepreneurs, driving them to other countries that are competing for international talent.
Although many people recognize the giants of immigrant entrepreneurship, such as Sergey Brin of Google and
Pierre Omidyar of eBay, thousands of other science and technology businesses are quietly making a difference by
creating almost half a million jobs for Americans and generating revenue of more than $50 billion. The depth and
breadth of immigrant entrepreneurs extend across the spectrum of enterprises, including neighborhood, growth,
and transnational businesses.
Expansion of employment-based visas would allow companies’ access to high-potential foreign individuals who
are graduates of U.S. universities. Businesses, cities, and states across the country should support changes in visa
policy and work to develop partnerships with immigrant entrepreneurs to create jobs and strengthen the economy.
This report makes the following policy and action recommendations:
• Create an entrepreneur-friendly culture for employment-based bene?t adjudications at the Department of
Homeland Security ensuring that the staff charged with adjudicating such visa petitions has the proper
training concerning how businesses operate in the 21st century, including expertise with business models
for start-ups.
• Cut red tape by eliminating the bureaucratic procedures that restrict entrepreneurs trying to emigrate to
the United States to start businesses and hire American workers.
• Create a visa category speci?cally targeted for immigrant entrepreneurs who want to establish a
U.S. enterprise and create jobs. Current law typically only permits foreign nationals to remain in the
United States if they are employed by an existing company or can invest $500,000 or more.
• Remove hurdles for foreign students with desirable skills to remain in the United States, focusing on
those who complete graduate degrees in the United States and are offered employment by
U.S. companies.
• Recognize that immigrant entrepreneurship occurs across the spectrum of businesses and that immigrant
entrepreneurs come from all backgrounds.
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 2
We should allow the world’s most creative entrepreneurs
to stay in our country. Tey are going to contribute and
succeed somewhere—why shouldn’t it be in the United
States? America’s prosperity has always depended on the
hard work, sacrifce, drive, and dreams of immigrants.
Our future will depend on them even more.
CEO of the U.S. Chamber of Commerce Thomas J. Donohue,
speaking at the U.S. Chamber of Commerce event
the State of American Business
(January 12, 2012)
Introduction
In August 2011, the President’s Council on Jobs and Competitiveness
met in Palo Alto, California, to highlight the need for reform of
education and immigration policies. Participants explained that
the struggling U.S. economy needs more entrepreneurs and highly
skilled workers to help create jobs. AOL co-founder Steve Case
emphasized the need to promote entrepreneurship: “If we want to get
the economy going and jobs going, we need to get more attention on
entrepreneurship. If every part of America worked liked Silicon Valley,
we would have a booming economy.”
3
The council agreed that a key
element of encouraging economic growth is to ensure that the
U.S. immigration system attracts and retains more foreign talent.
4
Although the United States has long been a destination for highly
motivated immigrants, the tide may be turning. More countries are
competing for international talent. Countries are even beginning to
implement policies that persuade their best and brightest to remain
at home while attracting talent from other nations through new
entrepreneurial programs.
A June 2011 report by the Partnership for a New American Economy
found that immigrant entrepreneurs established 18% of all Fortune
500 companies,
5
including Big Lots, BJ’s Wholesale Club, and
Wellcare Health Plans, in addition to Yahoo! and Google. Combined,
these businesses have generated $1.7 trillion in annual revenue and
currently employ 3.7 million workers worldwide.
6
The report, however, points out that the U.S. immigration system
often forces immigrant entrepreneurs to leave the United States,
rather than welcoming them to stay. A Kauffman Foundation report
discovered that more highly educated and skilled immigrants are
“voting with their feet” and returning to their home countries to start
businesses.
7
Interviews with foreign nationals who returned to India
and China to start businesses revealed that their return home was
prompted partially by the outdated U.S. immigration system.
8
Other
signi?cant factors deterring foreign entrepreneurs from remaining in
the United States include restrictive visa policies and lack of family
ties. The immigrants interviewed wanted to start businesses within
?ve years and believed that their home countries provided better
opportunities than the United States.
9
Given the right conditions, many of these immigrant entrepreneurs
might have stayed in the United States to start businesses, hire
U.S. workers, and pay U.S. taxes. Unfortunately, according to
the Kauffman Foundation, “Innovation that would otherwise be
happening here is going abroad. Without realizing it, we are
exporting our prosperity and strengthening our competitors.”
10
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 3
The need to revisit existing immigration laws and policies to reverse
this trend is critical. Equally critical is understanding the range of
contributions that immigrant entrepreneurs make at every level of
business enterprise. The role that immigrants play in revitalizing
neighborhoods, fueling growth industries, advancing technology,
and facilitating transnational business is growing in importance.
Few policymakers seem to understand how integral to the economy
this range of entrepreneurial activities has become. Only by
identifying the opportunities and challenges faced by immigrant
entrepreneurs in different types of enterprises can the United States
tailor immigration laws and policies to encourage the best and the
brightest to create businesses on U.S. soil.
Immigrants and the
Entrepreneurial Spirit
Immigrant entrepreneurship in the United States creates new wealth
and jobs. Many people are familiar with the success stories of
immigrants like Sergey Brin of Google, but few realize just how
many immigrants have started new businesses. Recent surveys have
found that immigrant entrepreneurs have founded or co-founded
25.3% of all science and technology ?rms in the United States.
11
Many immigrant entrepreneurs in a variety of other ?elds have also
revitalized neighborhoods, generated local jobs through growth
companies, and enabled businesses to grow internationally though
their transnational enterprises.
Prevalence of Self-Employment Among
Naturalized Citizens and Native Workers
Immigrants are more likely than native workers to choose
self-employment and starting their own businesses. Of
naturalized citizens, 5.1% were employed in their own
incorporated businesses, compared with only 3.7% of
employed native-born citizens who were employed in
their own incorporated businesses.
Source: Census Current Population Survey microdata
?les, September 2010–August 2011
An outstanding characteristic of these immigrant entrepreneurs
is their courage to take risks. In Massachusetts, immigrants, who
make up only 14% of the state’s population, founded 61% of its new
businesses in 2008.
12
These entrepreneurs have aided economic
recovery by fostering commerce, innovation, and job growth.
Looking at the positive contributions of immigrants—particularly
entrepreneurs and innovators—enables us to develop policy
solutions for a better future. Thoughtful immigration reform offers
tools for economic planners as they can contribute to both economic
recovery and long-term economic growth. As New York City Mayor
Michael Bloomberg said on March 23, 2011,
Immigrant entrepreneurs and the businesses
they launch have long been drivers of
innovation and enterprise in New York City
and across America. We need the federal
government to fx our immigration system,
but New York City can’t aford to wait.
Today, we are taking another step to help
our economy by promoting immigrants’
enterprise and entrepreneurship across our
fve boroughs.
13
Neighborhood
Revitalization
Immigrants often move into low-rent neighborhoods that have little
economic activity and deteriorating physical conditions. Many
establish businesses as an alternative to working at low-wage jobs,
usually within 3 to 10 years after they arrive in the United States.
These businesses are typically small to moderate in size and include
real estate ?rms, restaurants, food stores, nail salons, and gift shops.
Many of these businesses offer retail or personal services needed by
neighborhood ethnic groups.
14
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 4
Immigrant entrepreneurs often bring knowledge about a speci?c
trade from their home countries. However, some learn a trade
through working in the United States, or simply observe a need in
their neighborhood that can be met with new business.
15
These immigrant entrepreneurs create jobs to revive commerce
and investment in their neighborhoods. A study of three Boston
neighborhoods
16
showed that immigrant entrepreneurs are rapidly
expanding their enterprises beyond traditional neighborhood
businesses. They are developing new businesses in additional
locations and mentoring other ethnic entrepreneurs. Among other
factors, the rise of businesses owned or co-owned by immigrants has
greatly improved the quality of life in once-blighted neighborhoods.
Saul Perlera at age 16 came to the United States in the late
1980s as an undocumented immigrant from El Salvador
who did not speak any English. Within a few weeks, he was
working three low-paying jobs—a full-time factory job and
two cleaning jobs. By working with Italians at the factory and
learning English along the way, he became ?uent in three
languages—English, Italian, and Spanish. This led to a job
with a real estate company, where he learned the trade over
10 years and became the top agent. Shortly thereafter, he
gained citizenship and received his broker’s license.
In 2004, he started a real estate business that catered to the
growing population of Latinos in East Boston. The business,
which was ?nanced through personal resources, climbed
from 3 to 14 employees by 2006 and provided many new
jobs for the neighborhood. The economic downturn hit the
real estate market hard, and Perlera’s ?rm struggled, but
did survive. Perlera looks forward to robust growth as the
economy recovers. Additionally, he is taking his vision to
the neighborhood at large. Perlera is an advocate of the
East Boston Main Street facade-improvement program,
which helps small business owners enhance the look of
their storefronts. He is also involved in other organizations
that are improving the image of East Boston’s commercial
districts. “Someone has to raise the standards of housing,
business facades, and signage in the neighborhood,”
says Perlera. “Someone has to take the lead in creating a
neighborhood where people want to be.”
17
B.J. Wang, who owns E. Shan Tang Herbs, Inc., in Allston
Village of Boston, worked as a sushi chef when he came to
the United States. He also had experience working in his
family’s herbal remedy store in Korea. After selling the family
business in Korea, Wang’s father came to live with him in
the United States. Wang recalls that his father was extremely
bored at home. “I would leave every day for the restaurant,
and he would have nothing to do. He asked me if I would
start an herbal shop with him.”
Wang agreed and found a space near the restaurant that would
enable him to manage the new business and continue working
at the restaurant. Trying to build the business was dif?cult in
the beginning, as Wang worked two jobs. Eventually, when
customer volume grew, he was able to leave the restaurant and
devote himself to the family business. Eighteen years later,
people from across the country come to Allston Village to shop
in E. Shan Tang Herbs, Inc. The store’s Internet business is
thriving. Eventually Wang’s mother took over the original store,
enabling Wang to create another shop that he merged with
an Asian Healing Arts Center nearby. People ?ock to Wang’s
newest shop for classes in chi gong and for acupuncture and
acupressure services. Wang sees as many as 30 people a day
in addition to ?lling prescriptions for 40 to 50 doctors around
the country. “I see all kinds of people: white, black, yellow,
and brown. We all speak broken English to one another,” says
Wang. “My philosophy is to treat each customer like a god. If
you are good to people and love them, they feel better faster.”
18
A study by the Center for an Urban Future examined the impact of
immigrant entrepreneurs in Houston, Los Angeles, and New York
City. The study results demonstrate the positive impact of immigrant
entrepreneurs on the economies of these cities.
19
For example, as of 2004, in New York City foreign-born individuals
accounted for nearly one-half of all the self-employed, although
they only made up 36% of the city’s population. These immigrant
entrepreneurs have fueled an explosion of new enterprises across
the city. Between 1994 and 2004, the number of businesses citywide
increased by 9.6%, while the number of ?rms in immigrant-dominated
communities grew as much as 54.6%. In this 10-year period, job
growth in these communities far outpaced the citywide rate.
20
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 5
Immigrant Growth
Businesses
The point of transition where a start-up business becomes a growth
business varies. Success results from ambition, hard work, and
a vision.
For Ashish Sangani, realizing his vision to become a hotel
owner came after years of learning the hotel business,
honing strong analytical and interpersonal skills, and seeking
opportunities to acquire suitable properties. The Sangani
family now owns six hotels and manages ?ve of them, from
Quincy, Massachusetts, to Augusta, Maine.
Jill Cheng started out in her home with a small catalogue of
books in Chinese and Japanese directed at academic and
library audiences. She quickly moved into publishing original
works to bring her vision of Asia to the world. Her publishing
company has grown exponentially, owing to a rapidly
emerging China and the increasing importance of Asia.
There is evidence from the 2002–2007 economic censuses
that the number of Asian-owned businesses increased more
than 40%. U.S. Asian-owned businesses grew at twice the
national rate and employed about 2.8 million people from
2002 through 2007.
21
Moreover, the Center for an Urban
Future study found that in 2005, ?rst-generation immigrants
created at least 22 of Los Angeles’ 100 fastest-growing
companies, including El Pollo Loco, Panda Express, Lulu’s
Desserts, and Forever 21.
22
Immigrant growth businesses exist in various sectors. Immigrant
entrepreneurs work in food manufacturing, transportation, leisure
and hospitality, construction, money transfer and travel services, and
ethnic media businesses. For example, in New England, immigrants
own more than one-third of all businesses in the hotel, restaurant,
and food service industries. These businesses provide a signi?cant
number of local jobs. Some of these businesses are small, but many
are growing and have a positive impact on local, regional, and state
economies.
23
Klara Sotonova, who specializes in Eastern European gourmet
cookies, grew her business by more than 20% during a time
of economic downturn. She moved her cookie operation from
a kitchen in a 750-square-foot apartment to the ?rst ?oor of
an apartment building, which she recon?gured as a factory.
Sotonova’s cookies are now sold at festivals and high-end
restaurants throughout western Massachusetts.
24
According to the Center for an Urban Future study, New York
City is home to companies producing everything from fortune
cookies to pita bread, empanadas, and jerk chicken. Many of these
companies have more than 100 employees and sell their products
throughout the country. Others make goods for local restaurants
and markets. New York City is also home to an increasing number
of transportation businesses. One of the largest businesses is
Fung Wah Transportation, which provides inexpensive bus service
between New York City and Massachusetts. Commuter van services
that target areas underserved by public transportation have grown to
more than 70 companies, 95% of which are owned by immigrants.
25
Growth businesses are essential to economic recovery because
they generate signi?cant numbers of jobs. The U.S. Small Business
Administration estimates that small businesses have generated
64% of net new jobs over the past 15 years.
26
Immigrant growth
businesses play a signi?cant role in this job growth.
27
Of the companies appearing on the Inner City top 100 list,
14% have foreign-born chief executive of?cers. In 2011, more than
10% of honorees were immigrants. These fast-growing ?rms include
Facilities Connection of El Paso, Texas, which provides of?ce
design. Over the past ?ve years, CEO Patricia Holland-Branch from
Mexico has grown the company by 557%; the company now has
30 employees and annual revenue of more than $19 million. Another
immigrant honoree was Ed Ortiz, the CEO of a public accounting and
consulting service that employs more than 75 people and has annual
revenue of almost $5 million.
28
The Welcoming Center for New Pennsylvanians has also identi?ed
various growth companies that are generating jobs for American
workers. One of these companies is Vitacare Home Health, which
was launched in 2003 by Ukrainian immigrant Marina Poltavsky.
To date, Vitacare employs more than 150 U.S.-born workers. This
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 6
company is just one example of how immigrant entrepreneurs use
local talent to develop growth businesses and create jobs.
29
Albert Yousef is an Iraqi refugee who achieved the American
Dream with the help of Lutheran Immigration and Refugee
Services, one of many community-based organizations
working with new immigrants. Yousef, who began from
nothing but an idea and perseverance, created a growth
business that now employs more than a dozen people.
Fearing persecution, Yousef ?ed Iraq with his family and
resettled in the United States in 1993. Six months after he
arrived, he had not found a job. But he did not lose hope. He
took several odd jobs before working in a janitorial cleaning
company. After a few months on the job, it was apparent to
the owner that Yousef could play a key role in managing and
expanding the company. As a result, the owner offered him
a partnership stake in the business. Three years later, Yousef
bought out his partner’s share, with a plan to expand the
business. As sole owner, he has grown the company from
3 employees to 24 at his A2Z Facility Management, Inc.,
located in the Detroit area.
.30
Immigrant Entrepreneurs
in Engineering,
Technology, and
Life Sciences
Job creation by immigrant entrepreneurs is particularly robust
in engineering, technology, and life sciences. A 2011 Brookings
Institution report concludes that entrepreneurship and innovation
among “Einstein” immigrants increase America’s odds for economic
prosperity.
31
The United States continues to lead the world in technology and
science innovation; immigrant entrepreneurs play a large role in this
competitive thrust. A study by Wadhwa and colleagues found that
foreign-born entrepreneurs were founders or co-founders of more
than 25% of technology and engineering companies started between
1995 and 2005. In 2005, these technology companies employed
450,000 workers and generated $52 billion.
32
Wadhwa and colleagues said that Indian immigrants founded the
majority of these technology companies. Other companies identi?ed in
the study were founded by immigrants from Canada, China, Germany,
Iran, Israel, Japan, Korea, Taiwan, and the United Kingdom.
33
A study by Anderson and Platt reported that between 1990 and 2005,
immigrants started 25% of venture-backed U.S. public companies.
These companies are concentrated in cutting-edge sectors—
high-technology manufacturing, information technology, and life
sciences—with market capitalization exceeding $500 billion in 2005.
They include eBay, Google, Intel, Yahoo!, and Sun Microsystems.
34
In their book Immigrant, Inc., Herman and Smith demonstrate that
currently one-quarter of America’s scientists and engineers (and half
at the doctorate level) were born outside of the United States.
35
In
2005, U.S. universities awarded 55% of master’s degrees and
67% of doctorates in electrical engineering to foreign nationals.
36
These students make up two-thirds of graduate students at
U.S. colleges concentrated in electrical engineering and computer
science.
37
According to Herman and Smith, these immigrants bring
relentless preparation, constant vigilance, a willingness to take risks,
and a deep love and respect for American ideals such as thrift and
earnestness.
38
Sridhar Iyengar, a child of Indian immigrants, and Sonny Vu,
a child refugee from Vietnam, met during their undergraduate
days at the University of Illinois and developed a friendship
that led to the creation of AgaMatrix more than a decade
later. After college, Iyengar attended Cambridge University to
conduct research on biosensors, and Vu started a doctoral
program at the Massachusetts Institute of Technology (MIT).
Shortly thereafter, Vu left MIT to start a software company,
which Iyengar later joined. After selling the company, Vu
and Iyengar developed the next generation of blood glucose
monitoring products for diabetes.
They created their business in a cramped Somerville,
Massachusetts, apartment. The sparse character of their
operation impressed potential investors.
Iyengar and Vu’s connection to MIT was a huge advantage
for their ?edging company. They developed a smart team
to create a product with a large potential market both in the
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 7
United States and internationally, utilizing student interns,
investment money, and their own academic credentials.
Iyengar and Vu are convinced that their immigrant
backgrounds made the 5 years it took them to move from
having a good idea to creating a product line bearable. The
backing of their families (although more emotional than
?nancial), their desire to start their own business, and the
ability to ?nd other like-minded people to work with (a
great many of them immigrants themselves or children of
immigrants) aided them in developing their business.
39
In Massachusetts, 25% of biotechnology companies were founded
or co-founded by immigrants. These ?rms produced more than
$7.6 billion in sales and employed more than 4,000 workers in
2006 alone.
40
Immigrant entrepreneurs are a vital part of science and
technology innovation in other states, such as California and North
Carolina. These entrepreneurs take risks, which provide the thrust
and energy that keeps America at the forefront of innovation across
the world.
41
Transnational Businesses
Transnational businesses are maintained in the United States and
sometimes abroad in multiple countries. Business owners rely on
frequent travel and constant contact with other countries, drawing
on their social and business networks as well as their cultural
knowledge. Transnational businesses play an important role in
facilitating international trade, investment, and tourism. Lima and
Siqueira
42
point out that technology which has made transportation
and communication readily available and affordable is the foremost
driver of transnational business. New technology has dramatically
changed the relationship between people and places.
There are three distinct types of immigrant-owned transnational
enterprises:
• Circuit ?rms, which are involved in the transfer of goods
and remittances across countries
• Cultural enterprises, which rely on daily contacts with their
home country and depend on the desire of immigrants for
cultural goods, such as shows, music, and newspapers
• Return migrant enterprises, which are businesses
established by returnees who rely on their contacts in the
United States, such as restaurants, video stores, auto sales
and repairs, and of?ce supplies
43
Chang Express Travel and Fastway Moving are examples
of transnational businesses. Chang Express specializes
in inexpensive travel service to Latin America and money
transfer to Brazil, Ecuador, Mexico, and other Latin American
countries. It has of?ces in Florida and Massachusetts.
Fastway Moving, which specializes in door-to-door moving
among 165 countries, has of?ces in Florida, Georgia,
Massachusetts, and New Jersey.
44
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 8
Immigrant entrepreneurs who aspire to grow their businesses are
a crucial component of the economic vitality of local communities.
Many immigrant entrepreneurs do not receive aid from business
management and ?nancial assistance programs available to
small businesses. Immigrant businesses are often completely
disconnected from such services at the neighborhood level.
There are multiple reasons for this disconnect. Immigrant business
owners often mistrust government or ?nancial organizations, and
lack of language and cultural knowledge, little or no credit history,
and limited ?nancial literacy also create signi?cant barriers.
45
Additionally, community-based organizations and business
organizations are often unwilling to engage with neighborhood
immigrant businesses or entrepreneurs. As a result, relationships
needed to bridge gaps in language, ?nancial education, management
skills, and credit history are not built. Nevertheless, many of these
immigrant entrepreneurs do not sit still. Instead, they look to expand,
branch out, and diversify their businesses.
Cecilia Maya, of Maya Insurance in Boston, recounts her
unsuccessful quest for bank ?nancing. She found herself
befuddled by requests for business plans and revenue
projections. “I did not know how to complete a ?nancial
statement. I thought I would just rent space and say, ‘Here I
am!’” So she turned to her family. “I have a large family, and I
borrowed $1,000 here and $2,000 there,” and she soon had
enough to open two locations.
46
Asam Mujili, is an example of an immigrant entrepreneur
who effectively utilized community-based organizations
to aid in starting his business. Mujili comes from a family
of entrepreneurs. He is a serial entrepreneur, starting
businesses in his native Iraq in such diverse enterprises
as an auto repair shop and a bakery. In 2005, as Iraq
collapsed into violence, Mujili ?ed ?rst to Jordan, and then
to the United States as a refugee, where he resettled with
help from a community-based organization. He spoke no
English, did not know the culture, and had no credit history.
Yet 6 years after his arrival, Mujili now owns Istar Market
& Restaurant in Boise, Idaho. He learned every aspect of
starting a business with the help of the MicroEnterprise
Training Assistance (META) organization, which provides
small business assistance to low- and moderate-income
entrepreneurs in Idaho. META provides guidance on
business plan preparation, licensing and location, and even
how to receive a micro-loan to purchase an oven.
47
Neighborhood, growth, science and technology, and transnational
businesses developed by immigrants each make valuable
contributions to individuals, communities, states, and the overall
national economy in different ways. By understanding the special
characteristics, challenges, and opportunities faced by each, public
and private sector policymakers can support the success of immigrant
entrepreneurs across America. Certain common needs emerge,
however, regarding policy changes that could be made to encourage
immigrant entrepreneurship.
Characteristic Native-born Naturalized Citizens Non-citizens
Average age 49 49 44
Female 28.1% 30.4% 26.8%
Four-year college degree or higher 49.2% 53.8% 43.4%
White 93.9% 57.3% 65.7%
African-American 4.1% 6.7% 8.1%
Asian 1.2% 35.0% 26.1%
Mixed/other 0.8% 1.0% 0.1%
Hispanic 3.7% 21.7% 31.3%
Source: Census Current Population Survey microdata ?les, September 2010–August 2011 Notes: Hispanics may be of any race.
Incorporated Self-Employed by Age, Gender, Race, and Ethnicity
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 9
Chances For Success
Our research suggests that many existing administrative and
legislative proposals taken together could create an atmosphere
that fosters growth and encourages immigrants to continue to
contribute to the economic recovery of their adopted countries.
Key recommendations include the following:
• Create an entrepreneur-friendly culture. The
Department of Homeland Security (DHS) should create
more business-friendly policies and comply with the
January 18, 2011, executive order
48
requiring agencies
to ensure that regulations promote “economic growth,
innovation, competitiveness, and job creation and
predictability.” DHS made an initial effort to promote and
streamline entrepreneurship programs in its August 2, 2011,
memorandum,
49
but the agency must take additional steps
to create a cultural change among those who adjudicate
applications ?led by foreign entrepreneurs. In addition, DHS
should launch further engagement opportunities to seek
feedback on how to address the unique circumstances of
entrepreneurs, new businesses, and startups.
• Cut red tape. Bureaucratic procedures restrict entrepreneurs
trying to immigrate to the United States to start businesses
and hire American workers. If the administration is truly
interested in facilitating immigrant entrepreneurship, changes
must be made to regulations and adjudication processes. For
example, DHS should not demand excessive documentation
or dismiss the achievements of well-quali?ed applicants who
could start businesses or create jobs in the United States.
Moreover, the presumption underlying most employment-
based immigration under current law is that an employer
cannot sponsor the owner or founder of the business. Thus, if
the August 2, 2011, policy initiatives announced by DHS are
to have an impact, corresponding changes to the Adjudicators
Field Manual will be necessary to ensure that some
exceptions are made to the employment-based adjudications
presumptions. Common sense changes to the way visa
petitions are adjudicated could make a signi?cant difference
to aspiring immigrant entrepreneurs.
• Create visas for entrepreneurs who create jobs.
Entrepreneurs who invest very small amounts, or attract
small but suf?cient venture capital backing, and companies
that operate internal venture capital funds to encourage
employees to pursue the development of new product lines,
are important to the economy, as they are most often sources
of innovation. Congress should be urged to create or modify
a visa program to accommodate these job creators. A visa
status should be created for students and others lawfully in
the United States who are already acclimated to U.S. culture,
research, or business practices. This visa should grant
immigrants a conditional status during which time they are
afforded the opportunity to create a business operation that
employs Americans. Congress should likewise be urged to
create access to permanent resident status for those who
establish a business that produces jobs for U.S. workers.
• Remove hurdles for foreign students with desirable
skills to remain in the United States. Current law
makes staying in the United States after graduation uncertain,
time-consuming, and expensive for foreign graduates. As
a result, foreign students are pursuing career opportunities
outside the United States, and our country is losing valuable
talent. To mitigate these effects, immigration law should
permit foreign students in graduate programs (especially
science, technology, engineering, and mathematics) to remain
in the United States after graduation or after their practical
training expires to pursue job growth activities, including
?lling skilled labor positions and creating startup ventures.
• Recognize that immigrant entrepreneurship occurs
across the spectrum of business enterprise and that
immigrant entrepreneurs come from all backgrounds.
Immigrant entrepreneurship ranges from creating neighborhood
businesses and local growth operations to technology and
science innovations. All these types of business are critical
for economic stabilization and job growth. Immigrant
entrepreneurs come from all walks of life, and some lack
signi?cant education credentials. However, they establish
businesses at a signi?cantly higher rate than the native born.
Through hard work, creativity, and talent, they contribute to
economic growth and job creation. Immigration policy should
address this phenomenon by establishing visa categories that
provide opportunities for these talented individuals.
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 10
Final Word
Our research and that of others paint a glowing picture of how
immigrant-founded businesses create jobs for Americans and
strengthen the U.S. economy. This research is con?rmed by national
studies about immigrant entrepreneurs in engineering and science,
including analysis by Duke University, the University of California,
Berkeley, and the National Venture Capital Association.
50
Research
regarding immigrant neighborhood businesses by the Center for an
Urban Future
51
echoes these ?ndings. However, the contributions
of immigrant entrepreneurs remain largely unacknowledged in
economic development policy and planning.
Immigrant entrepreneurs appreciate the opportunities that America
gives them. Many recognize that they would be unable to thrive
in their native countries, where traditions, laws, and culture may
present formidable barriers to entrepreneurship. Anna Vorovona,
a life science consultant and entrepreneur, says that she is grateful
to the United States for the opportunities given to her as a woman,
scientist, and citizen—opportunities she never would have received
in Russia. Asnish Sangani from India, who founded GIRI hotels,
deeply appreciates the opportunities that he believes are available to
everyone in the United States. Dr. Nancy Chang, co-founder of the
drug company Tanox, sums it up well:
I came to the United States frightened and scared. But I
found if you do well and if you have a dream, you will ?nd
people in America to help you and give you an opportunity.
Life is very rich. I just love this country.
52
Although the drive and energy of immigrants will ultimately fuel their
entrepreneurship, current immigration laws make it dif?cult for many
who want to contribute to do so. New visa programs to increase the
?ow of entrepreneurs and innovators to the United States could ensure
that the founders of the next Google, Yahoo!, El Pollo Loco, Vitacare, or
Cheng-Tsui Publications will reside in the United States. The business
community, local communities, cities, and states across the country
must support changes in visa policy and continue to recognize the
many contributions of immigrant entrepreneurs.
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 11
1. Partnership for a New American Economy, New Economy Fact, 2011, available
at www.renewoureconomy.org.
2. V. Wadhwa, A. Saxenian, B. Rissing, and G. Geref?, America’s New Immigrant
Entrepreneurs (Durham, NC: Duke University Master of Engineering
Management Program, 2007), p. 4.
3. Juliana Gruenwald, “Progress on Immigration, Education Key to Reviving
Jobs, Tech Leaders Say,” National Journal (August 2, 2011), available athttp://nationaljournal.com/tech/progress-on-immigration-education-key-to-
reviving-jobs-tech-leaders-say-20110802?mre?d=site_search.
4. I bid.
5. Partnership for a New American Economy, The ‘New American’ Fortune 500
(June 2011), p. 2, available athttp://www.renewoureconomy.org/sites/all/
themes/pnae/img/new-american-fortune-500-june-2011.pdf.
6. Ibid.
7. Vivek Wadhwa, The Grass Is Indeed Greener in India and China for Returnee
Entrepreneurs (Kansas City, MO: Ewing Marion Kauffman Foundation, April
2011), available athttp://www.kauffman.org/uploaded?les/grass-is-greener-
for-returnee-entrepreneurs.pdf.
8. Ibid.
9. Ibid.
10. Vivek Wadhwa, “America is Bleeding Competitiveness,” Entrepreneur Corner
(April 28, 2011), available athttp://venturebeat.com/2011/04/28/brain-drain-
or-brain-circulation-america-is-bleeding-competitiveness/9.
11. V. Wadhwa et al, America’s New Immigrant Entrepreneurs, p. 4.
12. C. Brush, A. Elam, and E. Allen, 2008 Babson Entrepreneurship Monitor for
the Commonwealth of Massachusetts (Babson Park, MA: Babson College,
2008), p. 10.
13. New York City Government, Press Release 071-11, Posted March 3, 2011,
available at NYC.gov.
14. R. Borges-Mendez, M. Liu, and P. Watanabe, Immigrant Entrepreneurs and
Neighborhood Revitalization (Malden, MA: The Immigrant Learning Center,
Inc., 2005), pp. 4, 8, 20, 32.
15. N. A. Wong, P. Watanabe, and M. Liu, Memories and In?uences: Children of
Immigrant Entrepreneurs Talk about Businesses, Families, Graduate Schools
and Careers (Malden, MA: The Immigrant Learning Center, Inc., 2011),
pp. 21, 31, 37, 43.
16. Borges-Mendez et al., Immigrant Entrepreneurs and Neighborhood
Revitalization, p. 3.
17. M. D. Hohn, Immigrant Entrepreneurs: A Key to Boston’s Neighborhood
Revitalization (Boston, MA: The Federal Reserve Bank, Communities and
Banking, 2005), p. 22.
18. Ibid at pp. 20–27.
19. Center for an Urban Future, A World of Opportunity (New York, NY: Center for
an Urban Future, 2007).
20. Ibid.
21. U.S. Census Bureau Newsroom, Press Release CB11-74, Posted April 28,
2011, available athttp://www.census.gov/newsroom/releases/archives/
business_ownership/cb11-74.html.
22. Center for an Urban Future, A World of Opportunity.
23. J. Jennings, J. Jordon-Zachery, C. Siqueira, G. Barboza, J. Lawrence, and
M. Marion, Impact of Immigrant Entrepreneurs in Leisure and Hospitality
Businesses: Massachusetts and New England (Malden, MA: The Immigrant
Learning Center, Inc., 2010), pp. 16–17.
24. R. W. Fairlie, Estimating the Contribution of Immigrant Business Owners to
the U.S. Economy (Washington, DC: Small Business Administration, Of?ce of
Advocacy, 2008), p. 31.
25. Center for an Urban Future, A World of Opportunity.
26. See Small Business Administration, Of?ce of Advocacy FAQ, How Important
Are Small Businesses to the U.S. Economy? page last viewed October 18,
2011, available athttp://web.sba.gov/faqs/faqIndexAll.cfm?areaid=24 See also
Fairlie, Estimating the Contribution of Immigrant Business Owners to the U.S.
Economy, p. 31.
27. Fairlie, Estimating the Contribution of Immigrant Business Owners to the U.S.
Economy, p. 31.
28. New America Media, Commentary, Anne O’Callaghan, Posted May 8, 2011,
available athttp://newamericamedia.org/2011/05/immigrant-entrepreneurs-
creating-more-jobs-for-americans.php.
29. Ibid. The Welcoming Center for New Pennsylvanians and MicroEnterprise
Training Assistance (META) are examples of organizations that connect new
immigrant arrivals to economic opportunities within their communities, so
that they can successfully integrate into their new homeland.
30. Interview of Albert Yousef (Detroit, MI: Lutheran Immigration and Refugee
Service, January 28, 2011).
31. D. M. West, Seven Myths That Cloud the Immigration Debate (Washington,
DC: Brookings Institution, June 9, 2011), p. 1.
32. V. Wadhwa et al, America’s New Immigrant Entrepreneurs, p. 4.
33. Ibid. at p. 12.
34. S. Anderson and M. Platzer, American Made: The Impact of Immigrant
Entrepreneurs and Professionals on U.S. Competitiveness (Arlington, VA:
National Venture Capital Association, 2007), p. 9.
35. R.T. Herman and R. L Smith, Immigrant, Inc. (New Jersey: John Wiley & Sons,
2010), P. xxvi.
36. D. J. Monti, L. Smith-Doerr, and J. McQuaid, Immigrant Entrepreneurs in the
Massachusetts Biotechnology Industry (Malden, MA: The Immigrant Learning
Center, Inc., 2007), p. 2.
37. Immigrant, Inc., p. 143.
38. Ibid, p.xxxviii.
39. Immigrant Entrepreneurs in the Massachusetts Biotechnology Industry,
pp. 6-7.
40. Ibid.
41. Ibid.
42. A. Lima and E. Siqueria, Socio-Economic Pro?le of Brazilian Businesses in
Allston-Brighton (Boston, MA: University of Massachusetts Boston, Mauricio
Gastón Institute, 2011), pp. 14–18.
43. A. Lima, Conference Presentation at Babson College on Transnationalism and
Transnational Businesses, November 17, 2010, available athttp://www.ilctr.
org.
44. Ibid. Additional information available at www.changexpress.com and
www.fastwaymoving.com.
45. O’Callaghan, A, Conference Presentation on Immigrant Entrepreneurship
(November 2010), available at www.ilctr.org.
46. M. D. Hohn, Immigrant Entrepreneurs: A Key to Boston’s Neighborhood
Revitalization, p. 25.
47. Interview of Asaam Mujili by Ron Berning (Boise, ID: MicroEnterprise and
Training Assistance (META), September 16, 2011).
48. Executive Order 13563, Improving Regulation and Regulatory Review
(January 18, 2011), p. 1, available athttp://www.reginfo.gov/public/jsp/
Utilities/EO_13563.pdf.
49. Department of Homeland Security, Secretary Napolitano Announces Initiatives
to Promote Startup Enterprises and Spur Job Creation (August 2, 2011),
available athttp://www.dhs.gov/ynews/releases/20110802-napolitano-
startup-job-creation-initiatives.shtm.
50. See Wadhwa et al., America’s New Immigrant Entrepreneurs. See also
Anderson and Platzer, American Made.
51. Center for an Urban Future, A World of Opportunity.
52. Anderson and Platzer, American Made, p. 9.
Endnotes
100 Years Standing Up for American Enterprise
U.S. CHAMBER OF COMMERCE
LABOR, IMMIGRATION &
EMPLOYEE BENEFITS DIVISION
U.S. CHAMBER OF COMMERCE
Selected U.S. Companies Founded by Immigrant Entrepreneurs
Company Country Founder Date Founded
Big Lots Russia Sol Shenk 1967
Biogen Idec England/Switzerland Ivor Royston and Charles Weissman 1978
CA Technologies China Charles Wang 1976
Capital One Financial England Nigel Morris 1995
Comcast Germany Daniel Aaron 1963
eBay France Pierre Omidyar 1995
Garmin Taiwan Min Kao 1989
Google, Inc. Russia Sergey Brin 1998
Kohl’s Poland Maxwell Kohl 1962
Life Time Fitness, Inc. Iran Bahram Akradi 1992
LinkedIn France Jean-Luc Vaillant 2003
NVIDIA Corporation Taiwan Jen-Hsun Huang 1993
PayPal Ukraine Max Rafael Levchin 1998
Sun Microsystems, Inc. Germany/India Andreas Bechtolsheim and Vinod Khosla 1982
WebEx Communications, Inc. India Subrah S. Iyar 1997
WellCare Health Plans Zambia Kiran & Pradip Patel 1992
Yahoo! Inc Taiwan Jerry Yang 1994
YouTube Taiwan Steve Chen 2005
Immigrant-founded businesses are represented in every industry and business size throughout the United States. They create jobs,
generate tax revenue, and provide valuable goods and services. Our lives are touched every day by these immigrants. To recognize the
achievements of immigrant entrepreneurs, ILC recently unveiled the ?rst installment of the Immigrant Entrepreneur Hall of Fame.
Here is a sample from the Hall of Fame of immigrants who founded great American companies. Pro?les of
these founders and more can be found athttp://www.ilctr.org/promoting-immigrants/immigrant-entrepreneur-
hof/. Future installments will include more midsize businesses and young innovators that are building the future
of a strong U.S. economy.
ABOUT THE AUTHOR
Marcia Drew Hohn, Ed.D has been director of the Public Education Institute for the Immigrant Learning
Center, Inc. (ILC) in Malden, Massachusetts, since 2003, when the ILC began a public education institute
to document the economic and social contributions that immigrants make to America as entrepreneurs, job
creators, workers, taxpayers, and consumers. She developed a multipronged program to raise the visibility of
immigrants’ economic and social contributions through (1) research studies about New England immigrants as
entrepreneurs, workers, and consumers; (2) an education program for K–12 teachers; and (3) a research website.
Hohn is a member of the Massachusetts Governor’s Advisory Council on Immigrants and Refugees. With an
Ed.D. in human and organization systems and a specialty in immigrant entrepreneurship, Hohn has presented
and published articles describing the positive impact of immigrants. She works extensively with economic policy
developers, social planners, and immigrant organizations in Massachusetts and across the nation.
ABOUT THE EDITORS
Lisa Atkins is senior manager of immigration policy at the U.S. Chamber of Commerce. Before joining the
Chamber, she was a policy analyst at the Department of Homeland Security (DHS) Of?ce of Counternarcotics
Enforcement, where she worked on narcotics traf?cking and border security issues. She also worked at the
DHS Immigration and Customs Enforcement Of?ce of the Chief Counsel in Miami, Florida, for Ira Kurzban on
employment-based immigration issues, and at the Florida Immigrant Advocacy Center on human traf?cking and
domestic violence cases. Atkins received her B.A. from Claremont McKenna College in Spanish and government
and graduated magna cum laude from the University of Miami School of Law. She is a member of the Florida bar.
Michele Waslin, Ph.D., is senior policy analyst at the Immigration Policy Center (IPC), a division of
the American Immigration Council in Washington, D.C. Waslin tracks and analyzes immigration policy and
the immigration debate; writes fact sheets and reports on immigration-related topics; coordinates the IPC
research agenda and builds relationships with academics and other authors; provides technical assistance to
organizations’, conducts public education events; and maintains relationships with national, state, and local
advocacy organizations as well as federal agencies. Waslin has authored several publications on immigration
policy and post-9/11 immigration issues and appears regularly in English- and Spanish-language media.
Previously, she worked as director of immigration policy research at the National Council of La Raza and policy
coordinator at the Illinois Coalition for Immigrant and Refugee Rights. She received her Ph.D. in government
and international studies from the University of Notre Dame, holds an M.A. in international relations from the
University of Chicago, and a B.A. in political science from Creighton University.
U.S. Chamber of Commerce
1615 H Street, NW | Washington, DC 20062-2000
www.uschamber.com
doc_585834362.pdf
This particular brief file examines immigrant entrepreneurs creating jobs and strengthening the economy.
Immigrant
Entrepreneurs
Creating Jobs and Strengthening the Economy
ABOUT THIS REPORT
This report, authored by the Immigrant Learning Center (ILC) Public Education Institute of Malden,
Massachusetts, is a joint effort between the U.S. Chamber of Commerce and the Immigration Policy
Center of the American Immigration Council to explore job creation by immigrant entrepreneurs. This
report is a synthesis of ongoing research commissioned by the ILC, from leading universities, institutions,
and researchers. Prior to this report, the ILC has published seven research studies on immigrant
entrepreneurship, with ?ve speci?cally focusing on New England immigrant entrepreneurs in the
biotechnology and hospitality industries, and the others examining neighborhood businesses and the rise
of Asian-owned businesses (reports available at www.ilctr.org).
In fall 2010, the ILC collaborated with Babson College’s Center for Entrepreneurship to bring together
leaders studying immigrant entrepreneurship and immigrant innovators. At the conference, immigrant
business owners discussed their experiences, perceptions, failures, and successes (proceedings available
at www.ilctr.org).
ABOUT THE U.S. CHAMBER OF COMMERCE
The U.S. Chamber of Commerce is the world’s largest business federation, representing the interests of
more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers
and industry associations. The Chamber’s Labor, Immigration & Employee Bene?ts Division formulates
and analyzes Chamber policy in the areas of labor law, immigration, pension, and health care. The
division regularly participates in and chairs national coalitions to help de?ne and shape national labor,
immigration, and employee bene?ts policy.
The Immigration Policy Center
The Immigration Policy Center (IPC) is the research and policy arm of the American Immigration Council.
IPC’s mission is to shape a rational conversation on immigration and immigrant integration. Through
its research and analysis, IPC provides policymakers, the media, and the general public with accurate
information about the role of immigrants and immigration policy on U.S. society.
By
Marcia Drew Hohn, Ed.D.
Director, Public Education Institute at
The Immigrant Learning Center, Inc.
Editors
Lisa Atkins, Senior Manager, Immigration Policy, U.S. Chamber of Commerce
Michele Waslin, Ph.D., Senior Policy Analyst, Immigration Policy Center
January 2012
Immigrant
Entrepreneurs
Creating Jobs and Strengthening the Economy
Immigrant Entrepreneurs:
Creating Jobs and Strengthening the Economy
January 2012
Dear Readers:
The Labor, Immigration, & Employee Bene?ts Division at the U.S. Chamber of Commerce and the Immigration
Policy Center (IPC) at the American Immigration Council have long championed improvements to federal
policies that would create lawful status for immigrant entrepreneurs and permit foreign talent to work in the
United States, thereby facilitating job growth.
The need for a careful study of immigrants’ role in job creation has never been more relevant. Thus, the
Chamber and the IPC partnered with the Immigrant Learning Center (ILC) to produce this report, which
synthesizes ongoing research and analysis conducted by the ILC on immigrant entrepreneurship. The
report examines immigrant entrepreneurship in many different sectors, including neighborhood, growth,
transnational, and science and technology ?rms, and demonstrates how these immigrant businesses create
jobs for U.S. workers and contribute to America’s economic growth.
Sincerely,
Randel K. Johnson
Senior Vice President
Labor, Immigration, & Employee Bene?ts
U.S. Chamber of Commerce
Benjamin E. Johnson
Executive Director
American Immigration Council
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 6
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 1 Page 1
Executive Summary
T
here is widespread agreement across a number of key economic planning groups that immigrant
entrepreneurs create jobs and strengthen the economy.
1
Yet, the U.S. immigration system often forces out
immigrant entrepreneurs, driving them to other countries that are competing for international talent.
Although many people recognize the giants of immigrant entrepreneurship, such as Sergey Brin of Google and
Pierre Omidyar of eBay, thousands of other science and technology businesses are quietly making a difference by
creating almost half a million jobs for Americans and generating revenue of more than $50 billion. The depth and
breadth of immigrant entrepreneurs extend across the spectrum of enterprises, including neighborhood, growth,
and transnational businesses.
Expansion of employment-based visas would allow companies’ access to high-potential foreign individuals who
are graduates of U.S. universities. Businesses, cities, and states across the country should support changes in visa
policy and work to develop partnerships with immigrant entrepreneurs to create jobs and strengthen the economy.
This report makes the following policy and action recommendations:
• Create an entrepreneur-friendly culture for employment-based bene?t adjudications at the Department of
Homeland Security ensuring that the staff charged with adjudicating such visa petitions has the proper
training concerning how businesses operate in the 21st century, including expertise with business models
for start-ups.
• Cut red tape by eliminating the bureaucratic procedures that restrict entrepreneurs trying to emigrate to
the United States to start businesses and hire American workers.
• Create a visa category speci?cally targeted for immigrant entrepreneurs who want to establish a
U.S. enterprise and create jobs. Current law typically only permits foreign nationals to remain in the
United States if they are employed by an existing company or can invest $500,000 or more.
• Remove hurdles for foreign students with desirable skills to remain in the United States, focusing on
those who complete graduate degrees in the United States and are offered employment by
U.S. companies.
• Recognize that immigrant entrepreneurship occurs across the spectrum of businesses and that immigrant
entrepreneurs come from all backgrounds.
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 2
We should allow the world’s most creative entrepreneurs
to stay in our country. Tey are going to contribute and
succeed somewhere—why shouldn’t it be in the United
States? America’s prosperity has always depended on the
hard work, sacrifce, drive, and dreams of immigrants.
Our future will depend on them even more.
CEO of the U.S. Chamber of Commerce Thomas J. Donohue,
speaking at the U.S. Chamber of Commerce event
the State of American Business
(January 12, 2012)
Introduction
In August 2011, the President’s Council on Jobs and Competitiveness
met in Palo Alto, California, to highlight the need for reform of
education and immigration policies. Participants explained that
the struggling U.S. economy needs more entrepreneurs and highly
skilled workers to help create jobs. AOL co-founder Steve Case
emphasized the need to promote entrepreneurship: “If we want to get
the economy going and jobs going, we need to get more attention on
entrepreneurship. If every part of America worked liked Silicon Valley,
we would have a booming economy.”
3
The council agreed that a key
element of encouraging economic growth is to ensure that the
U.S. immigration system attracts and retains more foreign talent.
4
Although the United States has long been a destination for highly
motivated immigrants, the tide may be turning. More countries are
competing for international talent. Countries are even beginning to
implement policies that persuade their best and brightest to remain
at home while attracting talent from other nations through new
entrepreneurial programs.
A June 2011 report by the Partnership for a New American Economy
found that immigrant entrepreneurs established 18% of all Fortune
500 companies,
5
including Big Lots, BJ’s Wholesale Club, and
Wellcare Health Plans, in addition to Yahoo! and Google. Combined,
these businesses have generated $1.7 trillion in annual revenue and
currently employ 3.7 million workers worldwide.
6
The report, however, points out that the U.S. immigration system
often forces immigrant entrepreneurs to leave the United States,
rather than welcoming them to stay. A Kauffman Foundation report
discovered that more highly educated and skilled immigrants are
“voting with their feet” and returning to their home countries to start
businesses.
7
Interviews with foreign nationals who returned to India
and China to start businesses revealed that their return home was
prompted partially by the outdated U.S. immigration system.
8
Other
signi?cant factors deterring foreign entrepreneurs from remaining in
the United States include restrictive visa policies and lack of family
ties. The immigrants interviewed wanted to start businesses within
?ve years and believed that their home countries provided better
opportunities than the United States.
9
Given the right conditions, many of these immigrant entrepreneurs
might have stayed in the United States to start businesses, hire
U.S. workers, and pay U.S. taxes. Unfortunately, according to
the Kauffman Foundation, “Innovation that would otherwise be
happening here is going abroad. Without realizing it, we are
exporting our prosperity and strengthening our competitors.”
10
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 3
The need to revisit existing immigration laws and policies to reverse
this trend is critical. Equally critical is understanding the range of
contributions that immigrant entrepreneurs make at every level of
business enterprise. The role that immigrants play in revitalizing
neighborhoods, fueling growth industries, advancing technology,
and facilitating transnational business is growing in importance.
Few policymakers seem to understand how integral to the economy
this range of entrepreneurial activities has become. Only by
identifying the opportunities and challenges faced by immigrant
entrepreneurs in different types of enterprises can the United States
tailor immigration laws and policies to encourage the best and the
brightest to create businesses on U.S. soil.
Immigrants and the
Entrepreneurial Spirit
Immigrant entrepreneurship in the United States creates new wealth
and jobs. Many people are familiar with the success stories of
immigrants like Sergey Brin of Google, but few realize just how
many immigrants have started new businesses. Recent surveys have
found that immigrant entrepreneurs have founded or co-founded
25.3% of all science and technology ?rms in the United States.
11
Many immigrant entrepreneurs in a variety of other ?elds have also
revitalized neighborhoods, generated local jobs through growth
companies, and enabled businesses to grow internationally though
their transnational enterprises.
Prevalence of Self-Employment Among
Naturalized Citizens and Native Workers
Immigrants are more likely than native workers to choose
self-employment and starting their own businesses. Of
naturalized citizens, 5.1% were employed in their own
incorporated businesses, compared with only 3.7% of
employed native-born citizens who were employed in
their own incorporated businesses.
Source: Census Current Population Survey microdata
?les, September 2010–August 2011
An outstanding characteristic of these immigrant entrepreneurs
is their courage to take risks. In Massachusetts, immigrants, who
make up only 14% of the state’s population, founded 61% of its new
businesses in 2008.
12
These entrepreneurs have aided economic
recovery by fostering commerce, innovation, and job growth.
Looking at the positive contributions of immigrants—particularly
entrepreneurs and innovators—enables us to develop policy
solutions for a better future. Thoughtful immigration reform offers
tools for economic planners as they can contribute to both economic
recovery and long-term economic growth. As New York City Mayor
Michael Bloomberg said on March 23, 2011,
Immigrant entrepreneurs and the businesses
they launch have long been drivers of
innovation and enterprise in New York City
and across America. We need the federal
government to fx our immigration system,
but New York City can’t aford to wait.
Today, we are taking another step to help
our economy by promoting immigrants’
enterprise and entrepreneurship across our
fve boroughs.
13
Neighborhood
Revitalization
Immigrants often move into low-rent neighborhoods that have little
economic activity and deteriorating physical conditions. Many
establish businesses as an alternative to working at low-wage jobs,
usually within 3 to 10 years after they arrive in the United States.
These businesses are typically small to moderate in size and include
real estate ?rms, restaurants, food stores, nail salons, and gift shops.
Many of these businesses offer retail or personal services needed by
neighborhood ethnic groups.
14
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 4
Immigrant entrepreneurs often bring knowledge about a speci?c
trade from their home countries. However, some learn a trade
through working in the United States, or simply observe a need in
their neighborhood that can be met with new business.
15
These immigrant entrepreneurs create jobs to revive commerce
and investment in their neighborhoods. A study of three Boston
neighborhoods
16
showed that immigrant entrepreneurs are rapidly
expanding their enterprises beyond traditional neighborhood
businesses. They are developing new businesses in additional
locations and mentoring other ethnic entrepreneurs. Among other
factors, the rise of businesses owned or co-owned by immigrants has
greatly improved the quality of life in once-blighted neighborhoods.
Saul Perlera at age 16 came to the United States in the late
1980s as an undocumented immigrant from El Salvador
who did not speak any English. Within a few weeks, he was
working three low-paying jobs—a full-time factory job and
two cleaning jobs. By working with Italians at the factory and
learning English along the way, he became ?uent in three
languages—English, Italian, and Spanish. This led to a job
with a real estate company, where he learned the trade over
10 years and became the top agent. Shortly thereafter, he
gained citizenship and received his broker’s license.
In 2004, he started a real estate business that catered to the
growing population of Latinos in East Boston. The business,
which was ?nanced through personal resources, climbed
from 3 to 14 employees by 2006 and provided many new
jobs for the neighborhood. The economic downturn hit the
real estate market hard, and Perlera’s ?rm struggled, but
did survive. Perlera looks forward to robust growth as the
economy recovers. Additionally, he is taking his vision to
the neighborhood at large. Perlera is an advocate of the
East Boston Main Street facade-improvement program,
which helps small business owners enhance the look of
their storefronts. He is also involved in other organizations
that are improving the image of East Boston’s commercial
districts. “Someone has to raise the standards of housing,
business facades, and signage in the neighborhood,”
says Perlera. “Someone has to take the lead in creating a
neighborhood where people want to be.”
17
B.J. Wang, who owns E. Shan Tang Herbs, Inc., in Allston
Village of Boston, worked as a sushi chef when he came to
the United States. He also had experience working in his
family’s herbal remedy store in Korea. After selling the family
business in Korea, Wang’s father came to live with him in
the United States. Wang recalls that his father was extremely
bored at home. “I would leave every day for the restaurant,
and he would have nothing to do. He asked me if I would
start an herbal shop with him.”
Wang agreed and found a space near the restaurant that would
enable him to manage the new business and continue working
at the restaurant. Trying to build the business was dif?cult in
the beginning, as Wang worked two jobs. Eventually, when
customer volume grew, he was able to leave the restaurant and
devote himself to the family business. Eighteen years later,
people from across the country come to Allston Village to shop
in E. Shan Tang Herbs, Inc. The store’s Internet business is
thriving. Eventually Wang’s mother took over the original store,
enabling Wang to create another shop that he merged with
an Asian Healing Arts Center nearby. People ?ock to Wang’s
newest shop for classes in chi gong and for acupuncture and
acupressure services. Wang sees as many as 30 people a day
in addition to ?lling prescriptions for 40 to 50 doctors around
the country. “I see all kinds of people: white, black, yellow,
and brown. We all speak broken English to one another,” says
Wang. “My philosophy is to treat each customer like a god. If
you are good to people and love them, they feel better faster.”
18
A study by the Center for an Urban Future examined the impact of
immigrant entrepreneurs in Houston, Los Angeles, and New York
City. The study results demonstrate the positive impact of immigrant
entrepreneurs on the economies of these cities.
19
For example, as of 2004, in New York City foreign-born individuals
accounted for nearly one-half of all the self-employed, although
they only made up 36% of the city’s population. These immigrant
entrepreneurs have fueled an explosion of new enterprises across
the city. Between 1994 and 2004, the number of businesses citywide
increased by 9.6%, while the number of ?rms in immigrant-dominated
communities grew as much as 54.6%. In this 10-year period, job
growth in these communities far outpaced the citywide rate.
20
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 5
Immigrant Growth
Businesses
The point of transition where a start-up business becomes a growth
business varies. Success results from ambition, hard work, and
a vision.
For Ashish Sangani, realizing his vision to become a hotel
owner came after years of learning the hotel business,
honing strong analytical and interpersonal skills, and seeking
opportunities to acquire suitable properties. The Sangani
family now owns six hotels and manages ?ve of them, from
Quincy, Massachusetts, to Augusta, Maine.
Jill Cheng started out in her home with a small catalogue of
books in Chinese and Japanese directed at academic and
library audiences. She quickly moved into publishing original
works to bring her vision of Asia to the world. Her publishing
company has grown exponentially, owing to a rapidly
emerging China and the increasing importance of Asia.
There is evidence from the 2002–2007 economic censuses
that the number of Asian-owned businesses increased more
than 40%. U.S. Asian-owned businesses grew at twice the
national rate and employed about 2.8 million people from
2002 through 2007.
21
Moreover, the Center for an Urban
Future study found that in 2005, ?rst-generation immigrants
created at least 22 of Los Angeles’ 100 fastest-growing
companies, including El Pollo Loco, Panda Express, Lulu’s
Desserts, and Forever 21.
22
Immigrant growth businesses exist in various sectors. Immigrant
entrepreneurs work in food manufacturing, transportation, leisure
and hospitality, construction, money transfer and travel services, and
ethnic media businesses. For example, in New England, immigrants
own more than one-third of all businesses in the hotel, restaurant,
and food service industries. These businesses provide a signi?cant
number of local jobs. Some of these businesses are small, but many
are growing and have a positive impact on local, regional, and state
economies.
23
Klara Sotonova, who specializes in Eastern European gourmet
cookies, grew her business by more than 20% during a time
of economic downturn. She moved her cookie operation from
a kitchen in a 750-square-foot apartment to the ?rst ?oor of
an apartment building, which she recon?gured as a factory.
Sotonova’s cookies are now sold at festivals and high-end
restaurants throughout western Massachusetts.
24
According to the Center for an Urban Future study, New York
City is home to companies producing everything from fortune
cookies to pita bread, empanadas, and jerk chicken. Many of these
companies have more than 100 employees and sell their products
throughout the country. Others make goods for local restaurants
and markets. New York City is also home to an increasing number
of transportation businesses. One of the largest businesses is
Fung Wah Transportation, which provides inexpensive bus service
between New York City and Massachusetts. Commuter van services
that target areas underserved by public transportation have grown to
more than 70 companies, 95% of which are owned by immigrants.
25
Growth businesses are essential to economic recovery because
they generate signi?cant numbers of jobs. The U.S. Small Business
Administration estimates that small businesses have generated
64% of net new jobs over the past 15 years.
26
Immigrant growth
businesses play a signi?cant role in this job growth.
27
Of the companies appearing on the Inner City top 100 list,
14% have foreign-born chief executive of?cers. In 2011, more than
10% of honorees were immigrants. These fast-growing ?rms include
Facilities Connection of El Paso, Texas, which provides of?ce
design. Over the past ?ve years, CEO Patricia Holland-Branch from
Mexico has grown the company by 557%; the company now has
30 employees and annual revenue of more than $19 million. Another
immigrant honoree was Ed Ortiz, the CEO of a public accounting and
consulting service that employs more than 75 people and has annual
revenue of almost $5 million.
28
The Welcoming Center for New Pennsylvanians has also identi?ed
various growth companies that are generating jobs for American
workers. One of these companies is Vitacare Home Health, which
was launched in 2003 by Ukrainian immigrant Marina Poltavsky.
To date, Vitacare employs more than 150 U.S.-born workers. This
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 6
company is just one example of how immigrant entrepreneurs use
local talent to develop growth businesses and create jobs.
29
Albert Yousef is an Iraqi refugee who achieved the American
Dream with the help of Lutheran Immigration and Refugee
Services, one of many community-based organizations
working with new immigrants. Yousef, who began from
nothing but an idea and perseverance, created a growth
business that now employs more than a dozen people.
Fearing persecution, Yousef ?ed Iraq with his family and
resettled in the United States in 1993. Six months after he
arrived, he had not found a job. But he did not lose hope. He
took several odd jobs before working in a janitorial cleaning
company. After a few months on the job, it was apparent to
the owner that Yousef could play a key role in managing and
expanding the company. As a result, the owner offered him
a partnership stake in the business. Three years later, Yousef
bought out his partner’s share, with a plan to expand the
business. As sole owner, he has grown the company from
3 employees to 24 at his A2Z Facility Management, Inc.,
located in the Detroit area.
.30
Immigrant Entrepreneurs
in Engineering,
Technology, and
Life Sciences
Job creation by immigrant entrepreneurs is particularly robust
in engineering, technology, and life sciences. A 2011 Brookings
Institution report concludes that entrepreneurship and innovation
among “Einstein” immigrants increase America’s odds for economic
prosperity.
31
The United States continues to lead the world in technology and
science innovation; immigrant entrepreneurs play a large role in this
competitive thrust. A study by Wadhwa and colleagues found that
foreign-born entrepreneurs were founders or co-founders of more
than 25% of technology and engineering companies started between
1995 and 2005. In 2005, these technology companies employed
450,000 workers and generated $52 billion.
32
Wadhwa and colleagues said that Indian immigrants founded the
majority of these technology companies. Other companies identi?ed in
the study were founded by immigrants from Canada, China, Germany,
Iran, Israel, Japan, Korea, Taiwan, and the United Kingdom.
33
A study by Anderson and Platt reported that between 1990 and 2005,
immigrants started 25% of venture-backed U.S. public companies.
These companies are concentrated in cutting-edge sectors—
high-technology manufacturing, information technology, and life
sciences—with market capitalization exceeding $500 billion in 2005.
They include eBay, Google, Intel, Yahoo!, and Sun Microsystems.
34
In their book Immigrant, Inc., Herman and Smith demonstrate that
currently one-quarter of America’s scientists and engineers (and half
at the doctorate level) were born outside of the United States.
35
In
2005, U.S. universities awarded 55% of master’s degrees and
67% of doctorates in electrical engineering to foreign nationals.
36
These students make up two-thirds of graduate students at
U.S. colleges concentrated in electrical engineering and computer
science.
37
According to Herman and Smith, these immigrants bring
relentless preparation, constant vigilance, a willingness to take risks,
and a deep love and respect for American ideals such as thrift and
earnestness.
38
Sridhar Iyengar, a child of Indian immigrants, and Sonny Vu,
a child refugee from Vietnam, met during their undergraduate
days at the University of Illinois and developed a friendship
that led to the creation of AgaMatrix more than a decade
later. After college, Iyengar attended Cambridge University to
conduct research on biosensors, and Vu started a doctoral
program at the Massachusetts Institute of Technology (MIT).
Shortly thereafter, Vu left MIT to start a software company,
which Iyengar later joined. After selling the company, Vu
and Iyengar developed the next generation of blood glucose
monitoring products for diabetes.
They created their business in a cramped Somerville,
Massachusetts, apartment. The sparse character of their
operation impressed potential investors.
Iyengar and Vu’s connection to MIT was a huge advantage
for their ?edging company. They developed a smart team
to create a product with a large potential market both in the
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 7
United States and internationally, utilizing student interns,
investment money, and their own academic credentials.
Iyengar and Vu are convinced that their immigrant
backgrounds made the 5 years it took them to move from
having a good idea to creating a product line bearable. The
backing of their families (although more emotional than
?nancial), their desire to start their own business, and the
ability to ?nd other like-minded people to work with (a
great many of them immigrants themselves or children of
immigrants) aided them in developing their business.
39
In Massachusetts, 25% of biotechnology companies were founded
or co-founded by immigrants. These ?rms produced more than
$7.6 billion in sales and employed more than 4,000 workers in
2006 alone.
40
Immigrant entrepreneurs are a vital part of science and
technology innovation in other states, such as California and North
Carolina. These entrepreneurs take risks, which provide the thrust
and energy that keeps America at the forefront of innovation across
the world.
41
Transnational Businesses
Transnational businesses are maintained in the United States and
sometimes abroad in multiple countries. Business owners rely on
frequent travel and constant contact with other countries, drawing
on their social and business networks as well as their cultural
knowledge. Transnational businesses play an important role in
facilitating international trade, investment, and tourism. Lima and
Siqueira
42
point out that technology which has made transportation
and communication readily available and affordable is the foremost
driver of transnational business. New technology has dramatically
changed the relationship between people and places.
There are three distinct types of immigrant-owned transnational
enterprises:
• Circuit ?rms, which are involved in the transfer of goods
and remittances across countries
• Cultural enterprises, which rely on daily contacts with their
home country and depend on the desire of immigrants for
cultural goods, such as shows, music, and newspapers
• Return migrant enterprises, which are businesses
established by returnees who rely on their contacts in the
United States, such as restaurants, video stores, auto sales
and repairs, and of?ce supplies
43
Chang Express Travel and Fastway Moving are examples
of transnational businesses. Chang Express specializes
in inexpensive travel service to Latin America and money
transfer to Brazil, Ecuador, Mexico, and other Latin American
countries. It has of?ces in Florida and Massachusetts.
Fastway Moving, which specializes in door-to-door moving
among 165 countries, has of?ces in Florida, Georgia,
Massachusetts, and New Jersey.
44
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 8
Immigrant entrepreneurs who aspire to grow their businesses are
a crucial component of the economic vitality of local communities.
Many immigrant entrepreneurs do not receive aid from business
management and ?nancial assistance programs available to
small businesses. Immigrant businesses are often completely
disconnected from such services at the neighborhood level.
There are multiple reasons for this disconnect. Immigrant business
owners often mistrust government or ?nancial organizations, and
lack of language and cultural knowledge, little or no credit history,
and limited ?nancial literacy also create signi?cant barriers.
45
Additionally, community-based organizations and business
organizations are often unwilling to engage with neighborhood
immigrant businesses or entrepreneurs. As a result, relationships
needed to bridge gaps in language, ?nancial education, management
skills, and credit history are not built. Nevertheless, many of these
immigrant entrepreneurs do not sit still. Instead, they look to expand,
branch out, and diversify their businesses.
Cecilia Maya, of Maya Insurance in Boston, recounts her
unsuccessful quest for bank ?nancing. She found herself
befuddled by requests for business plans and revenue
projections. “I did not know how to complete a ?nancial
statement. I thought I would just rent space and say, ‘Here I
am!’” So she turned to her family. “I have a large family, and I
borrowed $1,000 here and $2,000 there,” and she soon had
enough to open two locations.
46
Asam Mujili, is an example of an immigrant entrepreneur
who effectively utilized community-based organizations
to aid in starting his business. Mujili comes from a family
of entrepreneurs. He is a serial entrepreneur, starting
businesses in his native Iraq in such diverse enterprises
as an auto repair shop and a bakery. In 2005, as Iraq
collapsed into violence, Mujili ?ed ?rst to Jordan, and then
to the United States as a refugee, where he resettled with
help from a community-based organization. He spoke no
English, did not know the culture, and had no credit history.
Yet 6 years after his arrival, Mujili now owns Istar Market
& Restaurant in Boise, Idaho. He learned every aspect of
starting a business with the help of the MicroEnterprise
Training Assistance (META) organization, which provides
small business assistance to low- and moderate-income
entrepreneurs in Idaho. META provides guidance on
business plan preparation, licensing and location, and even
how to receive a micro-loan to purchase an oven.
47
Neighborhood, growth, science and technology, and transnational
businesses developed by immigrants each make valuable
contributions to individuals, communities, states, and the overall
national economy in different ways. By understanding the special
characteristics, challenges, and opportunities faced by each, public
and private sector policymakers can support the success of immigrant
entrepreneurs across America. Certain common needs emerge,
however, regarding policy changes that could be made to encourage
immigrant entrepreneurship.
Characteristic Native-born Naturalized Citizens Non-citizens
Average age 49 49 44
Female 28.1% 30.4% 26.8%
Four-year college degree or higher 49.2% 53.8% 43.4%
White 93.9% 57.3% 65.7%
African-American 4.1% 6.7% 8.1%
Asian 1.2% 35.0% 26.1%
Mixed/other 0.8% 1.0% 0.1%
Hispanic 3.7% 21.7% 31.3%
Source: Census Current Population Survey microdata ?les, September 2010–August 2011 Notes: Hispanics may be of any race.
Incorporated Self-Employed by Age, Gender, Race, and Ethnicity
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 9
Chances For Success
Our research suggests that many existing administrative and
legislative proposals taken together could create an atmosphere
that fosters growth and encourages immigrants to continue to
contribute to the economic recovery of their adopted countries.
Key recommendations include the following:
• Create an entrepreneur-friendly culture. The
Department of Homeland Security (DHS) should create
more business-friendly policies and comply with the
January 18, 2011, executive order
48
requiring agencies
to ensure that regulations promote “economic growth,
innovation, competitiveness, and job creation and
predictability.” DHS made an initial effort to promote and
streamline entrepreneurship programs in its August 2, 2011,
memorandum,
49
but the agency must take additional steps
to create a cultural change among those who adjudicate
applications ?led by foreign entrepreneurs. In addition, DHS
should launch further engagement opportunities to seek
feedback on how to address the unique circumstances of
entrepreneurs, new businesses, and startups.
• Cut red tape. Bureaucratic procedures restrict entrepreneurs
trying to immigrate to the United States to start businesses
and hire American workers. If the administration is truly
interested in facilitating immigrant entrepreneurship, changes
must be made to regulations and adjudication processes. For
example, DHS should not demand excessive documentation
or dismiss the achievements of well-quali?ed applicants who
could start businesses or create jobs in the United States.
Moreover, the presumption underlying most employment-
based immigration under current law is that an employer
cannot sponsor the owner or founder of the business. Thus, if
the August 2, 2011, policy initiatives announced by DHS are
to have an impact, corresponding changes to the Adjudicators
Field Manual will be necessary to ensure that some
exceptions are made to the employment-based adjudications
presumptions. Common sense changes to the way visa
petitions are adjudicated could make a signi?cant difference
to aspiring immigrant entrepreneurs.
• Create visas for entrepreneurs who create jobs.
Entrepreneurs who invest very small amounts, or attract
small but suf?cient venture capital backing, and companies
that operate internal venture capital funds to encourage
employees to pursue the development of new product lines,
are important to the economy, as they are most often sources
of innovation. Congress should be urged to create or modify
a visa program to accommodate these job creators. A visa
status should be created for students and others lawfully in
the United States who are already acclimated to U.S. culture,
research, or business practices. This visa should grant
immigrants a conditional status during which time they are
afforded the opportunity to create a business operation that
employs Americans. Congress should likewise be urged to
create access to permanent resident status for those who
establish a business that produces jobs for U.S. workers.
• Remove hurdles for foreign students with desirable
skills to remain in the United States. Current law
makes staying in the United States after graduation uncertain,
time-consuming, and expensive for foreign graduates. As
a result, foreign students are pursuing career opportunities
outside the United States, and our country is losing valuable
talent. To mitigate these effects, immigration law should
permit foreign students in graduate programs (especially
science, technology, engineering, and mathematics) to remain
in the United States after graduation or after their practical
training expires to pursue job growth activities, including
?lling skilled labor positions and creating startup ventures.
• Recognize that immigrant entrepreneurship occurs
across the spectrum of business enterprise and that
immigrant entrepreneurs come from all backgrounds.
Immigrant entrepreneurship ranges from creating neighborhood
businesses and local growth operations to technology and
science innovations. All these types of business are critical
for economic stabilization and job growth. Immigrant
entrepreneurs come from all walks of life, and some lack
signi?cant education credentials. However, they establish
businesses at a signi?cantly higher rate than the native born.
Through hard work, creativity, and talent, they contribute to
economic growth and job creation. Immigration policy should
address this phenomenon by establishing visa categories that
provide opportunities for these talented individuals.
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 10
Final Word
Our research and that of others paint a glowing picture of how
immigrant-founded businesses create jobs for Americans and
strengthen the U.S. economy. This research is con?rmed by national
studies about immigrant entrepreneurs in engineering and science,
including analysis by Duke University, the University of California,
Berkeley, and the National Venture Capital Association.
50
Research
regarding immigrant neighborhood businesses by the Center for an
Urban Future
51
echoes these ?ndings. However, the contributions
of immigrant entrepreneurs remain largely unacknowledged in
economic development policy and planning.
Immigrant entrepreneurs appreciate the opportunities that America
gives them. Many recognize that they would be unable to thrive
in their native countries, where traditions, laws, and culture may
present formidable barriers to entrepreneurship. Anna Vorovona,
a life science consultant and entrepreneur, says that she is grateful
to the United States for the opportunities given to her as a woman,
scientist, and citizen—opportunities she never would have received
in Russia. Asnish Sangani from India, who founded GIRI hotels,
deeply appreciates the opportunities that he believes are available to
everyone in the United States. Dr. Nancy Chang, co-founder of the
drug company Tanox, sums it up well:
I came to the United States frightened and scared. But I
found if you do well and if you have a dream, you will ?nd
people in America to help you and give you an opportunity.
Life is very rich. I just love this country.
52
Although the drive and energy of immigrants will ultimately fuel their
entrepreneurship, current immigration laws make it dif?cult for many
who want to contribute to do so. New visa programs to increase the
?ow of entrepreneurs and innovators to the United States could ensure
that the founders of the next Google, Yahoo!, El Pollo Loco, Vitacare, or
Cheng-Tsui Publications will reside in the United States. The business
community, local communities, cities, and states across the country
must support changes in visa policy and continue to recognize the
many contributions of immigrant entrepreneurs.
Immigrant Entrepreneurs
Creating Jobs and Strengthening the Economy
Page 11
1. Partnership for a New American Economy, New Economy Fact, 2011, available
at www.renewoureconomy.org.
2. V. Wadhwa, A. Saxenian, B. Rissing, and G. Geref?, America’s New Immigrant
Entrepreneurs (Durham, NC: Duke University Master of Engineering
Management Program, 2007), p. 4.
3. Juliana Gruenwald, “Progress on Immigration, Education Key to Reviving
Jobs, Tech Leaders Say,” National Journal (August 2, 2011), available athttp://nationaljournal.com/tech/progress-on-immigration-education-key-to-
reviving-jobs-tech-leaders-say-20110802?mre?d=site_search.
4. I bid.
5. Partnership for a New American Economy, The ‘New American’ Fortune 500
(June 2011), p. 2, available athttp://www.renewoureconomy.org/sites/all/
themes/pnae/img/new-american-fortune-500-june-2011.pdf.
6. Ibid.
7. Vivek Wadhwa, The Grass Is Indeed Greener in India and China for Returnee
Entrepreneurs (Kansas City, MO: Ewing Marion Kauffman Foundation, April
2011), available athttp://www.kauffman.org/uploaded?les/grass-is-greener-
for-returnee-entrepreneurs.pdf.
8. Ibid.
9. Ibid.
10. Vivek Wadhwa, “America is Bleeding Competitiveness,” Entrepreneur Corner
(April 28, 2011), available athttp://venturebeat.com/2011/04/28/brain-drain-
or-brain-circulation-america-is-bleeding-competitiveness/9.
11. V. Wadhwa et al, America’s New Immigrant Entrepreneurs, p. 4.
12. C. Brush, A. Elam, and E. Allen, 2008 Babson Entrepreneurship Monitor for
the Commonwealth of Massachusetts (Babson Park, MA: Babson College,
2008), p. 10.
13. New York City Government, Press Release 071-11, Posted March 3, 2011,
available at NYC.gov.
14. R. Borges-Mendez, M. Liu, and P. Watanabe, Immigrant Entrepreneurs and
Neighborhood Revitalization (Malden, MA: The Immigrant Learning Center,
Inc., 2005), pp. 4, 8, 20, 32.
15. N. A. Wong, P. Watanabe, and M. Liu, Memories and In?uences: Children of
Immigrant Entrepreneurs Talk about Businesses, Families, Graduate Schools
and Careers (Malden, MA: The Immigrant Learning Center, Inc., 2011),
pp. 21, 31, 37, 43.
16. Borges-Mendez et al., Immigrant Entrepreneurs and Neighborhood
Revitalization, p. 3.
17. M. D. Hohn, Immigrant Entrepreneurs: A Key to Boston’s Neighborhood
Revitalization (Boston, MA: The Federal Reserve Bank, Communities and
Banking, 2005), p. 22.
18. Ibid at pp. 20–27.
19. Center for an Urban Future, A World of Opportunity (New York, NY: Center for
an Urban Future, 2007).
20. Ibid.
21. U.S. Census Bureau Newsroom, Press Release CB11-74, Posted April 28,
2011, available athttp://www.census.gov/newsroom/releases/archives/
business_ownership/cb11-74.html.
22. Center for an Urban Future, A World of Opportunity.
23. J. Jennings, J. Jordon-Zachery, C. Siqueira, G. Barboza, J. Lawrence, and
M. Marion, Impact of Immigrant Entrepreneurs in Leisure and Hospitality
Businesses: Massachusetts and New England (Malden, MA: The Immigrant
Learning Center, Inc., 2010), pp. 16–17.
24. R. W. Fairlie, Estimating the Contribution of Immigrant Business Owners to
the U.S. Economy (Washington, DC: Small Business Administration, Of?ce of
Advocacy, 2008), p. 31.
25. Center for an Urban Future, A World of Opportunity.
26. See Small Business Administration, Of?ce of Advocacy FAQ, How Important
Are Small Businesses to the U.S. Economy? page last viewed October 18,
2011, available athttp://web.sba.gov/faqs/faqIndexAll.cfm?areaid=24 See also
Fairlie, Estimating the Contribution of Immigrant Business Owners to the U.S.
Economy, p. 31.
27. Fairlie, Estimating the Contribution of Immigrant Business Owners to the U.S.
Economy, p. 31.
28. New America Media, Commentary, Anne O’Callaghan, Posted May 8, 2011,
available athttp://newamericamedia.org/2011/05/immigrant-entrepreneurs-
creating-more-jobs-for-americans.php.
29. Ibid. The Welcoming Center for New Pennsylvanians and MicroEnterprise
Training Assistance (META) are examples of organizations that connect new
immigrant arrivals to economic opportunities within their communities, so
that they can successfully integrate into their new homeland.
30. Interview of Albert Yousef (Detroit, MI: Lutheran Immigration and Refugee
Service, January 28, 2011).
31. D. M. West, Seven Myths That Cloud the Immigration Debate (Washington,
DC: Brookings Institution, June 9, 2011), p. 1.
32. V. Wadhwa et al, America’s New Immigrant Entrepreneurs, p. 4.
33. Ibid. at p. 12.
34. S. Anderson and M. Platzer, American Made: The Impact of Immigrant
Entrepreneurs and Professionals on U.S. Competitiveness (Arlington, VA:
National Venture Capital Association, 2007), p. 9.
35. R.T. Herman and R. L Smith, Immigrant, Inc. (New Jersey: John Wiley & Sons,
2010), P. xxvi.
36. D. J. Monti, L. Smith-Doerr, and J. McQuaid, Immigrant Entrepreneurs in the
Massachusetts Biotechnology Industry (Malden, MA: The Immigrant Learning
Center, Inc., 2007), p. 2.
37. Immigrant, Inc., p. 143.
38. Ibid, p.xxxviii.
39. Immigrant Entrepreneurs in the Massachusetts Biotechnology Industry,
pp. 6-7.
40. Ibid.
41. Ibid.
42. A. Lima and E. Siqueria, Socio-Economic Pro?le of Brazilian Businesses in
Allston-Brighton (Boston, MA: University of Massachusetts Boston, Mauricio
Gastón Institute, 2011), pp. 14–18.
43. A. Lima, Conference Presentation at Babson College on Transnationalism and
Transnational Businesses, November 17, 2010, available athttp://www.ilctr.
org.
44. Ibid. Additional information available at www.changexpress.com and
www.fastwaymoving.com.
45. O’Callaghan, A, Conference Presentation on Immigrant Entrepreneurship
(November 2010), available at www.ilctr.org.
46. M. D. Hohn, Immigrant Entrepreneurs: A Key to Boston’s Neighborhood
Revitalization, p. 25.
47. Interview of Asaam Mujili by Ron Berning (Boise, ID: MicroEnterprise and
Training Assistance (META), September 16, 2011).
48. Executive Order 13563, Improving Regulation and Regulatory Review
(January 18, 2011), p. 1, available athttp://www.reginfo.gov/public/jsp/
Utilities/EO_13563.pdf.
49. Department of Homeland Security, Secretary Napolitano Announces Initiatives
to Promote Startup Enterprises and Spur Job Creation (August 2, 2011),
available athttp://www.dhs.gov/ynews/releases/20110802-napolitano-
startup-job-creation-initiatives.shtm.
50. See Wadhwa et al., America’s New Immigrant Entrepreneurs. See also
Anderson and Platzer, American Made.
51. Center for an Urban Future, A World of Opportunity.
52. Anderson and Platzer, American Made, p. 9.
Endnotes
100 Years Standing Up for American Enterprise
U.S. CHAMBER OF COMMERCE
LABOR, IMMIGRATION &
EMPLOYEE BENEFITS DIVISION
U.S. CHAMBER OF COMMERCE
Selected U.S. Companies Founded by Immigrant Entrepreneurs
Company Country Founder Date Founded
Big Lots Russia Sol Shenk 1967
Biogen Idec England/Switzerland Ivor Royston and Charles Weissman 1978
CA Technologies China Charles Wang 1976
Capital One Financial England Nigel Morris 1995
Comcast Germany Daniel Aaron 1963
eBay France Pierre Omidyar 1995
Garmin Taiwan Min Kao 1989
Google, Inc. Russia Sergey Brin 1998
Kohl’s Poland Maxwell Kohl 1962
Life Time Fitness, Inc. Iran Bahram Akradi 1992
LinkedIn France Jean-Luc Vaillant 2003
NVIDIA Corporation Taiwan Jen-Hsun Huang 1993
PayPal Ukraine Max Rafael Levchin 1998
Sun Microsystems, Inc. Germany/India Andreas Bechtolsheim and Vinod Khosla 1982
WebEx Communications, Inc. India Subrah S. Iyar 1997
WellCare Health Plans Zambia Kiran & Pradip Patel 1992
Yahoo! Inc Taiwan Jerry Yang 1994
YouTube Taiwan Steve Chen 2005
Immigrant-founded businesses are represented in every industry and business size throughout the United States. They create jobs,
generate tax revenue, and provide valuable goods and services. Our lives are touched every day by these immigrants. To recognize the
achievements of immigrant entrepreneurs, ILC recently unveiled the ?rst installment of the Immigrant Entrepreneur Hall of Fame.
Here is a sample from the Hall of Fame of immigrants who founded great American companies. Pro?les of
these founders and more can be found athttp://www.ilctr.org/promoting-immigrants/immigrant-entrepreneur-
hof/. Future installments will include more midsize businesses and young innovators that are building the future
of a strong U.S. economy.
ABOUT THE AUTHOR
Marcia Drew Hohn, Ed.D has been director of the Public Education Institute for the Immigrant Learning
Center, Inc. (ILC) in Malden, Massachusetts, since 2003, when the ILC began a public education institute
to document the economic and social contributions that immigrants make to America as entrepreneurs, job
creators, workers, taxpayers, and consumers. She developed a multipronged program to raise the visibility of
immigrants’ economic and social contributions through (1) research studies about New England immigrants as
entrepreneurs, workers, and consumers; (2) an education program for K–12 teachers; and (3) a research website.
Hohn is a member of the Massachusetts Governor’s Advisory Council on Immigrants and Refugees. With an
Ed.D. in human and organization systems and a specialty in immigrant entrepreneurship, Hohn has presented
and published articles describing the positive impact of immigrants. She works extensively with economic policy
developers, social planners, and immigrant organizations in Massachusetts and across the nation.
ABOUT THE EDITORS
Lisa Atkins is senior manager of immigration policy at the U.S. Chamber of Commerce. Before joining the
Chamber, she was a policy analyst at the Department of Homeland Security (DHS) Of?ce of Counternarcotics
Enforcement, where she worked on narcotics traf?cking and border security issues. She also worked at the
DHS Immigration and Customs Enforcement Of?ce of the Chief Counsel in Miami, Florida, for Ira Kurzban on
employment-based immigration issues, and at the Florida Immigrant Advocacy Center on human traf?cking and
domestic violence cases. Atkins received her B.A. from Claremont McKenna College in Spanish and government
and graduated magna cum laude from the University of Miami School of Law. She is a member of the Florida bar.
Michele Waslin, Ph.D., is senior policy analyst at the Immigration Policy Center (IPC), a division of
the American Immigration Council in Washington, D.C. Waslin tracks and analyzes immigration policy and
the immigration debate; writes fact sheets and reports on immigration-related topics; coordinates the IPC
research agenda and builds relationships with academics and other authors; provides technical assistance to
organizations’, conducts public education events; and maintains relationships with national, state, and local
advocacy organizations as well as federal agencies. Waslin has authored several publications on immigration
policy and post-9/11 immigration issues and appears regularly in English- and Spanish-language media.
Previously, she worked as director of immigration policy research at the National Council of La Raza and policy
coordinator at the Illinois Coalition for Immigrant and Refugee Rights. She received her Ph.D. in government
and international studies from the University of Notre Dame, holds an M.A. in international relations from the
University of Chicago, and a B.A. in political science from Creighton University.
U.S. Chamber of Commerce
1615 H Street, NW | Washington, DC 20062-2000
www.uschamber.com
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