Immigrant Business Owners Contribute to the US economy.

Estimating the Contribution
of Immigrant Business Owners
to the U.S. Economy
by
Robert W. Fairlie, Ph.D.
Santa Cruz, CA 95060

http://www.sba.gov/advo/research/rs334tot.pdf

Overall Findings
According to Census 2000, immigrants constitute
12.2 percent of the total U.S. work force, and 12.5
percent of the total population of U.S. business owners.
The total business income generated by immigrant
business owners is $67 billion, representing
11.6 percent of all business income in the United
States. Immigrant business ownership is geographically
concentrated in a few states.
Highlights
• Immigrants are nearly 30 percent more likely to
start a business than are nonimmigrants, 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
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 Tex as 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.
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.