SBA Documents Impact of Immigrant Owned Small Business
A new report by Robert W. Fairlie, Ph.D. titled Estimating the Contribution of Immigrant Business Owners to the U.S. Economy highlights the contributions of immigrant owned small business. Noted in the research summary are the following:
• Immigrants are nearly 30 percent more likely to start a business than are non-immigrants, and they
represent 16.7 percent of all new business owners in the United States
• Immigrant business owners make significant contributions to business income, generating $67 billion of the $577 billion in U.S. business income, as estimated from 2000 U.S. Census data. They generate nearly one-quarter of all business income in California—nearly $20 billion—and nearly one-fifth of business income in New York, Florida, and New Jersey.
• Immigrant business ownership is geographically concentrated in a few states. Nearly 30 percent of all business owners in California are immigrants, compared with about 12.5 percent of the population of U.S. business owners. Twenty-five percent of business owners in New York and more than 20 percent in New Jersey, Florida, and Hawaii are foreign-born.
• In California, immigrants are 34.2 percent of the new business owners each month. Nearly 30 percent of all new business owners per month in New York, Florida, and Texas are immigrants.
• Immigrants own 11.2 percent of businesses with $100,000 or more in sales and 10.8 percent of businesses with employees.
• Immigrants’ contributions differ across sectors of the economy. They own a large share—more than one-fifth—of businesses in the arts, entertainment, and recreation industry. They also contribute significantly to other services, transportation, and wholesale and retail trade.
• Immigrants also own a large share of businesses in the lowest and highest skill sectors and in several industries.
• Although business owners from Mexico constitute the largest share of immigrant business owners, total immigrant business ownership, formation, and income originate with immigrant business owners from around the world.