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| | '''Immigrant entrepreneurship''' is the founding and ownership of businesses by individuals who have relocated from their country of birth to another country. The concept encompasses a range of entrepreneurial activity, from self-employment and small businesses to the creation of larger firms and technology companies.<ref name="Berghoff2017">{{cite encyclopedia |last=Berghoff |first=Hartmut |title=Immigrant Entrepreneurship: A Typology Based on Historical and Contemporary Evidence |encyclopedia=Oxford Research Encyclopedia of Business and Management |publisher=Oxford University Press |date=2017 |doi=10.1093/acrefore/9780190224851.013.270 |url=https://academic.oup.com/edited-volume/61793/chapter/545971848}}</ref> Research in the field examines factors including access to capital and networks, motivations for business formation, economic outcomes, and the relationship between migration and entrepreneurship.<ref name="Fairlie2015">{{cite book | last1=Fairlie | first1=Robert W. | last2=Lofstrom | first2=Magnus | title=Handbook of the Economics of International Migration | chapter=Immigration and Entrepreneurship | publisher=Elsevier | volume=1 | date=2015 | isbn=978-0-444-63372-9 | doi=10.1016/b978-0-444-53768-3.00017-5 | url=https://linkinghub.elsevier.com/retrieve/pii/B9780444537683000175 | access-date=2026-08-11 | pages=877–911}}</ref> It is an established subject of research in economics, sociology, business, and related fields.<ref name="Kerr2016">{{cite report | last1=Kerr | first1=Sari Pekkala | last2=Kerr | first2=William | title=Immigrant Entrepreneurship | publication-place=Cambridge, MA | date=2016 | doi=10.3386/w22385 | url=http://www.nber.org/papers/w22385.pdf | access-date=2026-08-11}}</ref> |
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| '''Immigrant entrepreneurship''' refers to the founding or ownership of businesses by individuals who have immigrated to a country other than their country of birth. Such entrepreneurs have contributed in the economic development of many countries. Notable examples include [[Andrew Carnegie]],<ref>{{cite journal |last=Gould |first=Sam |title=Andrew Carnegie: Scottish Immigrant, Entrepreneur, Philanthropist |journal=University of Dayton Review |volume=23 |issue=3 |year=1995 |url=https://ecommons.udayton.edu/udr/vol23/iss3/5}}</ref> [[Alexander Graham Bell]],<ref>{{cite web |title=Alexander Graham Bell (1847-1922) |url=https://www.bbc.co.uk/history/historic_figures/bell_alexander_graham.shtml |website=BBC History |publisher=BBC |access-date=21 March 2026}}</ref> and [[Elon Musk]]<ref>{{cite news |last=Sommerlad |first=Joe |title=Elon Musk, who arrived in the U.S. at age 31, is being questioned on his citizenship again. What to know |url=https://www.independent.co.uk/news/world/americas/us-politics/elon-musk-citizenship-us-south-africa-canada-b2693635.html |work=The Independent |date=6 February 2025 |access-date=21 March 2026}}</ref> in the United States; [[Paul Julius Reuter]] in Britain;<ref>{{cite encyclopedia |title=Reuter, Paul Julius, Freiherr von |encyclopedia=Encyclopedia.com |url=https://www.encyclopedia.com/religion/encyclopedias-almanacs-transcripts-and-maps/reuter-paul-julius-freiherr-von |access-date=21 March 2026}}</ref> and [[James de Rothschild]], who established the French branch of the [[Rothschild family|Rothschild dynasty]].<ref>{{cite encyclopedia |title=Rothschild family |encyclopedia=|url=https://www.britannica.com/money/Rothschild-family |access-date=21 March 2026}}</ref> Other examples include [[Lakshmi Mittal]], who built [[ArcelorMittal]] into one of the world's largest steel producers;<ref>{{cite encyclopedia |title=Lakshmi Mittal |encyclopedia=Britannica |url=https://www.britannica.com/money/Lakshmi-Mittal |access-date=21 March 2026}}</ref> [[Liem Sioe Liong]], who founded the [[Salim Group]], which became the largest business conglomerate in [[Southeast Asia]];<ref>{{cite news |title=Founder of Indonesia's Salim Group dies at 97 |url=https://www.koreaherald.com/article/10365506 |work=Korea Herald |agency=AFP |date=12 June 2012 |access-date=21 March 2026}}</ref> and [[Helena Rubinstein]] who established an international cosmetics business.<ref>{{cite encyclopedia |title=Helena Rubinstein |encyclopedia=Britannica |url=https://www.britannica.com/money/Helena-Rubinstein |access-date=21 March 2026}}</ref> | |
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| ==Patterns and prevalence== | | ==Definition and scope== |
| Research indicates that immigrants found businesses at higher rates than native-born populations in several developed countries, including the [[United States]], [[United Kingdom]], [[Canada]], and [[Australia]].<ref name="Kerr2016">{{cite journal |last=Kerr |first=Sari Pekkala |last2=Kerr |first2=William R. |title=Immigrant Entrepreneurship |journal=NBER Working Paper |number=17-011 |year=2016 |url=https://www.hbs.edu/ris/Publication%20Files/17-011_da2c1cf4-a999-4159-ab95-457c783e3fff.pdf}}</ref>
| | Immigrant entrepreneurs operate across industries, populations, and host countries, and vary in both their backgrounds and business activities. They are studied as a distinct group because of the interrelationship between migration and access to resources, professional networks, markets, and employment opportunities.<ref name="Berghoff2017"/> The scale of this activity is reflected in OECD's ''International Migration Outlook 2024'' which reported that migrant entrepreneurs accounted for approximately 17% of the self-employed population across OECD countries in 2022, up from 11% in 2006.<ref name="OECD2024">{{cite web | title=Migrant entrepreneurship in OECD countries: International Migration Outlook 2024 | website=OECD | date=2024-11-14 | url=https://www.oecd.org/en/publications/international-migration-outlook-2024_50b0353e-en/full-report/migrant-entrepreneurship-in-oecd-countries_72f44494.html | access-date=2026-08-11}}</ref> |
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| Across [[OECD]] countries, the Organisation for Economic Co-operation and Development's ''International Migration Outlook 2024'' reports that migrant entrepreneurs represented 17% of the self-employed population in 2022, up from 11% in 2006. The report also states that migrant self-employment accounted for approximately 15% of total employment growth between 2011 and 2021.<ref name="OECD2024">{{cite report |chapter=Migrant Entrepreneurship in OECD Countries |title=International Migration Outlook 2024 |publisher=OECD |year=2024 |url=https://www.oecd.org/en/publications/international-migration-outlook-2024_50b0353e-en/full-report/migrant-entrepreneurship-in-oecd-countries_72f44494.html}}</ref> The report notes that patterns of immigrant entrepreneurship vary across countries and regions.<ref name="OECD2024"/>
| | ==Frameworks== |
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| | Several theoretical frameworks have been developed to explain patterns of immigrant entrepreneurship. [[Ethnic enclave|Ethnic enclave economy]] theory describes concentrated clusters of co-ethnic businesses that provide employment and economic opportunity within immigrant communities.<ref>{{cite journal | last1=Light | first1=Ivan | last2=Sabagh | first2=Georges | last3=Bozorgmehr | first3=Mehdi | last4=Der-Martirosian | first4=Claudia | title=Beyond the Ethnic Enclave Economy | journal=Social Problems | volume=41 | issue=1 | date=1994 | doi=10.2307/3096842 | pages=65–80 | url=https://academic.oup.com/socpro/article-lookup/doi/10.2307/3096842 | access-date=2026-08-11}}</ref> [[Middleman minority]] theory describes entrepreneurs who serve as intermediaries between dominant and subordinate groups.<ref name="MinBozorgmehr2000">{{cite journal | last1=Min | first1=Pyong Gap | last2=Bozorgmehr | first2=Mehdi | title=Immigrant Entrepreneurship and Business Patterns: A Comparison of Koreans and Iranians in Los Angeles | journal=International Migration Review | volume=34 | issue=3 | date=2000 | doi=10.2307/2675942 | page=707 | url=https://www.jstor.org/stable/2675942?origin=crossref | access-date=2026-05-17}}</ref> Mixed embeddedness theory proposes that outcomes are shaped by both the resources of the immigrant community and the opportunity structures of the host economy.<ref name="Salehi2026">{{cite journal | last=Salehi | first=Ali | title=Understanding the Nature of Ethnic Entrepreneurship: A Systematic Literature Review | journal=Journal of Ethnic and Cultural Studies | volume=13 | issue=1 | date=2026-02-02 | issn=2149-1291 | doi=10.29333/ejecs/2252 | pages=276–308 | url=https://www.ejecs.org/index.php/JECS/article/view/2252 | access-date=2026-08-11}}</ref> The blocked mobility hypothesis claims that barriers to employment, including non-recognition of qualifications and labour market discrimination, may push some immigrants toward self-employment.<ref name="Fairlie2015"/> |
| Additional data describe the scale and growth of immigrant entrepreneurship in specific contexts. According to the American Immigration Council, in 2024 approximately 46% of Fortune 500 companies were founded by immigrants or their children, with those companies generating $8.6 trillion in revenue and employing over 15.5 million people worldwide.<ref name="AIC2024">{{cite web |title=Fortune 500 Companies Founded by Immigrants |url=https://www.americanimmigrationcouncil.org/report/new-american-fortune-500-2024/ |website=American Immigration Council |year=2024 |access-date=21 March 2026}}</ref>
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| In the United States, a 2019 review published in [[IZA World of Labor]] by economist Magnus Lofstrom reports that the foreign-born share of business owners more than doubled between 1980 and 2010.<ref name="Lofstrom2019">{{cite journal |last=Lofstrom |first=Magnus |title=Immigrants and Entrepreneurship |journal=IZA World of Labor |year=2019 |url=https://wol.iza.org/articles/immigrants-and-entrepreneurship/long}}</ref> A study using [[United States Census Bureau]] data found that immigrant entrepreneurs accounted for approximately 24% of new business founders between 1995 and 2008, with the share rising from 17% in 1995 to 27% in 2008.<ref name="Kerr2016" /> A separate analysis based on the [[American Community Survey]] found that by around 2010, immigrants represented approximately 18.2% of all United States business owners despite comprising 16.3% of the workforce, and started businesses at roughly double the rate of the native-born population.<ref name="Fairlie2015">{{cite book |last=Fairlie |first=Robert W. |last2=Lofstrom |first2=Magnus |chapter=Immigration and Entrepreneurship |title=Handbook of the Economics of International Migration |volume=1B |publisher=Elsevier |year=2015 |pages=877-911 |url=https://people.ucsc.edu/~rfairlie/papers/published/handbook%20chapter%20immigrant%20entrepreneurship%202015.pdf}}</ref>
| | ==Economic Contributions== |
| | Businesses founded by immigrants have been shown to contribute to employment growth, innovation, and international trade in their host economies. They establish businesses at higher rates than native-born populations across many developed economies,<ref name="Kerr2016"/> and a 2024 report found that approximately 46% of Fortune 500 companies were founded by immigrants or their children.<ref name="AIC2024">{{cite web | title=Fortune 500 Companies Founded by Immigrants [2024] | website=American Immigration Council | date=2026-06-17 | url=https://www.americanimmigrationcouncil.org/report/new-american-fortune-500-2024/ | access-date=2026-08-11}}</ref> In high-technology sectors, immigrant-founded firms show higher rates of patenting, research activity, and product development.<ref name="Brown2019">{{cite report | last1=Brown | first1=J. David | last2=Earle | first2=John | last3=Kim | first3=Mee Jung | last4=Lee | first4=Kyung Min | title=Immigrant Entrepreneurs and Innovation in the U.S. High-Tech Sector | publication-place=Cambridge, MA | date=2019 | doi=10.3386/w25565 | url=http://www.nber.org/papers/w25565.pdf | access-date=2026-08-11}}</ref> Immigrant-owned firms also participate in international trade at higher rates than native-owned firms, a pattern associated with transnational networks and knowledge of foreign markets.<ref name="Fairlie2015"/> Self-employment whiich common to immigrants, can also serve as a pathway to economic integration, with earnings among self-employed immigrants tending to converge toward those of native-born entrepreneurs over time.<ref name="Fairlie2015"/> |
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| ==Entrepreneurship by sector== | | ==Diaspora and networks== |
| Immigrant entrepreneurship spans a wide range of industries, with notable contributions in several sectors. The following sections highlight selected areas where such activity has been documented.
| | Diaspora communities provide an important organisational and networking context for immigrant entrepreneurship. Members often function as economic intermediaries, bridging home and host country networks through shared language, cultural knowledge, and transnational ties.<ref>{{cite book | last1=Fang | first1=Tony | last2=Wells | first2=Alex | title=Handbook of Labor, Human Resources and Population Economics | chapter=Diaspora Economics | publisher=Springer International Publishing | publication-place=Cham | date=2023 | isbn=978-3-319-57365-6 | doi=10.1007/978-3-319-57365-6_105-1 | url=https://link.springer.com/10.1007/978-3-319-57365-6_105-1 | access-date=2026-08-11 | pages=1–23}}</ref> Co-ethnic networks can provide access to information, resources, customers, and business relationships, while shared trust and social ties can facilitate business formation..<ref name="MinBozorgmehr2000"/><ref name="Salehi2026"/> |
| ===Technology===
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| Immigrant founders have played a prominent role in the technology industry. A 2019 study by Brown, Earle, Kim and Lee, using [[United States Census Bureau]] data, found higher rates of innovation in immigrant-owned high-technology firms across 15 of 16 different innovation measures, with this pattern observed among both recent start-ups and established firms and across levels of educational attainment.<ref name="Brown2019">{{cite journal |last=Brown |first=J. David |last2=Earle |first2=John S. |last3=Kim |first3=Mee Jung |last4=Lee |first4=Kyung Min |title=Immigrant Entrepreneurs and Innovation in the U.S. High-Tech Sector |journal=NBER Working Paper |number=25565 |year=2019 |url=https://www.nber.org/papers/w25565}}</ref> Among venture capital-backed firms in the United States, immigrants constituted approximately 30% of founders in 2005, slightly exceeding their overall share of entrepreneurial activity.<ref name="Kerr2016"/> Notable examples include [[Sergey Brin]], who emigrated from the Soviet Union to the United States as a child and co-founded [[Google]] in 1998;<ref>{{cite web |last=Greenstein |first=Shane |title=Without Immigrants, We Wouldn't Have Google |url=https://hbswk.hbs.edu/item/without-immigrants-we-wouldn-t-have-google |website=Harvard Business School Working Knowledge |date=21 December 2015 |access-date=21 March 2026}}</ref> and Taiwan-born [[Jensen Huang]], who emigrated to the United States at the age of nine and co-founded [[NVIDIA]] in 1993.<ref>{{cite encyclopedia |title=Jensen Huang |encyclopedia=Britannica |url=https://www.britannica.com/money/Jensen-Huang |access-date=21 March 2026}}</ref>
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| ===Finance and banking===
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| Research indicates that immigrant entrepreneurs have been active in the financial services sector in the United States, with immigrant business owners representing a substantial share in this industry.<ref name="Fairlie2015"/>
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| In the 19th and early 20th centuries, immigrant entrepreneurs were involved in the development of financial institutions and markets, including commercial paper and investment banking, particularly in urban financial centers such as New York City. German-Jewish immigrants were among those active in these areas and participated in the growth of financial networks and services during this period.
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| [[Marcus Goldman]], a Bavarian-born Jewish immigrant who arrived in the United States in 1848, founded a commercial paper brokerage in 1869 in Lower Manhattan, which later became [[Goldman Sachs]].<ref>{{cite encyclopedia |title=Goldman Sachs |encyclopedia=Britannica |url=https://www.britannica.com/money/Goldman-Sachs-Group-Inc |access-date=21 March 2026}}</ref>
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| [[Paul Warburg]], a German-born banker who emigrated to the United States in 1902, was among the individuals involved in the development of the [[Federal Reserve System]]. He contributed to discussions on central banking and served on the system’s inaugural board following its establishment in 1913.<ref>{{cite web |title=Paul M. Warburg |url=https://www.federalreservehistory.org/people/paul-m-warburg |website=Federal Reserve History |access-date=21 March 2026}}</ref>
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| ===Media and entertainment===
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| ====Film and television====
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| Immigrant entrepreneurs have been involved in the innovation and development of the American film and media industries with several notable examples.
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| [[Harry Warner]], who was born in Poland and raised in the United States, and his brothers founded [[Warner Bros.]] in 1923.<ref>{{cite encyclopedia |title=Warner Brothers |encyclopedia=Britannica |url=https://www.britannica.com/topic/Warner-Brothers |access-date=21 March 2026}}</ref> The studio became one of the major Hollywood film companies and produced a large body of work throughout the 20th century.
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| In the modern era, Australian-born [[Rupert Murdoch]] became a naturalized United States citizen in 1985 and established [[News Corp]] and [[Fox Corporation]], which expanded into major international media companies.<ref>{{cite encyclopedia |title=Rupert Murdoch |encyclopedia=Britannica |url=https://www.britannica.com/biography/Rupert-Murdoch |access-date=21 March 2026}}</ref>
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| ====Journalism====
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| A number of immigrants have contributed to journalism in their host countries.
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| Hungarian-born [[Joseph Pulitzer]] immigrated to the United States in 1864 and became a naturalized citizen in 1867. He founded the [[St. Louis Post-Dispatch]] and later acquired the [[New York World]]. He also endowed the [[Columbia University Graduate School of Journalism]] and established the [[Pulitzer Prize]], which has been awarded annually since 1917.<ref>{{cite encyclopedia |title=Joseph Pulitzer |encyclopedia=Britannica |url=https://www.britannica.com/biography/Joseph-Pulitzer |access-date=21 March 2026}}</ref>
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| Another example is [[Arianna Huffington]], who emigrated from Greece to the United States via Britain, co-founded [[HuffPost]] in 2005. The company was acquired by AOL in 2011, and in 2012 HuffPost became the first digital-native news platform to receive a [[Pulitzer Prize]].<ref>{{cite encyclopedia |title=Arianna Huffington |encyclopedia=Britannica |url=https://www.britannica.com/biography/Arianna-Huffington |access-date=21 March 2026}}</ref>
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| ====Digital media====
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| Several widely used communication platforms have been co-founded by immigrants to the United States including [[YouTube]] and [[WhatsApp]].
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| [[Steve Chen]], who immigrated from Taiwan as a child, co-founded YouTube in 2005.<ref>{{cite web |title=Steven Chen |url=https://www.ebsco.com/research-starters/biography/steven-chen |website=EBSCO Research Starters |access-date=21 March 2026}}</ref> The platform was acquired by Google in 2006 for $1.65 billion.<ref>{{cite web |title=Google Inc. Form 8-K Exhibit 99.1 |url=https://www.sec.gov/Archives/edgar/data/1288776/000119312506206884/dex991.htm |publisher=U.S. Securities and Exchange Commission |date=9 October 2006 |access-date=25 March 2026}}</ref>
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| [[Jan Koum]] emigrated from Ukraine to California at the age of sixteen and co-founded WhatsApp in 2009.<ref>{{cite news |title=Jan Koum, WhatsApp's Co-Founder, Leaving Facebook |url=https://www.nytimes.com/2018/04/30/technology/jan-koum-whatsapp-facebook.html |work=The New York Times |date=30 April 2018 |access-date=21 March 2026}}</ref> Facebook acquired WhatsApp in 2014 for $19 billion.
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| ====Music====
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| Cuban-born [[Emilio Estefan]] immigrated to Miami following the Cuban Revolution and co-founded the [[Miami Sound Machine]]. He worked as a producer and manager for artists including [[Gloria Estefan]], [[Ricky Martin]], [[Shakira]], and [[Jennifer Lopez]].<ref>{{cite encyclopedia |last=|title=Estefan, Emilio, Jr. |encyclopedia=Encyclopedia.com |url=https://www.encyclopedia.com/education/economics-magazines/estefan-emilio-jr |access-date=21 March 2026}}</ref> His wife [[Gloria Estefan]], also Cuban-born, became a recording artist and received the Ellis Island Medal of Honor in 1993.<ref>{{cite web |title=Gloria Estefan |url=https://www.ilctr.org/about-immigrants/ilc-publications-and-resources/nine-famous-latinx-immigrants/ |website=Immigrant Learning Center |access-date=21 March 2026}}</ref>
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| [[Ahmet Ertegun]], born in Istanbul and brought to the United States in 1935 when his father was appointed Turkish ambassador, later co-founded [[Atlantic Records]] in 1947. The label signed and developed artists including [[Ray Charles]], [[Aretha Franklin]], [[Led Zeppelin]], and the [[Rolling Stones]].<ref>{{cite encyclopedia |title=Ertegun, Ahmet |encyclopedia=Encyclopedia.com |url=https://www.encyclopedia.com/education/news-wires-white-papers-and-books/ertegun-ahmet |access-date=25 March 2026}}</ref>
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| ===Retail and food===
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| Immigrant entrepreneurs are represented in retail, food service, and agriculture across a range of regions. Research from Ireland, Sweden, and Southeast Asia has documented immigrant-owned food businesses operating in these areas, often supplying ethnic food products that may not be widely available to local consumers, and serving as one pathway to economic participation when other forms of employment are less accessible.<ref>{{cite journal |last=Murphy |first=Anna |last2=Bogue |first2=Joe |last3=O'Flaherty |first3=Brian |title=Exploration of the Role of Immigrant Entrepreneurs in Regional Entrepreneurial Food Ecosystems |journal=Proceedings of the European Conference on Innovation and Entrepreneurship |year=2020 |doi=10.34190/EIE/20.214}}</ref><ref>{{cite journal |last=Barth |first=Henrik |last2=Zalkat |first=Ghazal |title=Refugee entrepreneurship in the agri-food industry: The Swedish experience |journal=Journal of Rural Studies |volume=86 |year=2021 |pages=189-197 |doi=10.1016/j.jrurstud.2021.06.011}}</ref><ref>{{cite journal |last=Tran |first=Thu Cuc |last2=Meyer |first=Morakot |last3=Zhu |first=Tingshu |last4=Do |first=Thuy Thanh Thi |title=Vietnamese food entrepreneurs in Bangkok's Baan Yuan |journal=Journal of Ethnic and Migration Studies |year=2026 |doi=10.1080/1369183X.2025.2601335}}</ref>
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| Immigrant entrepreneurs have also been associated with the development of new markets in some sectors. Research on the United States labour market describes how Vietnamese immigrants established nail salons offering manicure and pedicure services at lower prices than many traditional beauty salons, contributing to increased access to these services and creating demand within the industry.<ref name="Eckstein2018">{{cite journal |last=Eckstein |first=Susan |last2=Peri |first2=Giovanni |title=Immigrant Niches and Immigrant Networks in the U.S. Labor Market |journal=RSF: The Russell Sage Foundation Journal of the Social Sciences |volume=4 |issue=1 |year=2018 |pages=1-17 |doi=10.7758/rsf.2018.4.1.01}}</ref>
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| Similar patterns have been observed in the restaurant sector, where immigrant-owned businesses have been associated with a wider variety of dining options in cities across the United States.<ref name="Eckstein2018"/> Research on immigrant-owned businesses in a Chicago retail district found that retail and personal services were common sectors of entry, and that many businesses began informally before transitioning into formal enterprises as owners accumulated capital and experience.<ref>{{cite journal |last=Raijman |first=Rebeca |last2=Tienda |first2=Marta |title=Immigrants' Pathways to Business Ownership: A Comparative Ethnic Perspective |journal=International Migration Review |volume=34 |issue=3 |year=2000 |pages=682-706 |doi=10.2307/2675941}}</ref>
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| In the United States, immigrants are estimated to account for approximately one third of entrepreneurs in the food service and accommodation sector.<ref name="Fairlie2015"/>
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| ==Entrepreneurship by diaspora==
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| Several diaspora immigrant communities have demonstrated sustained rates of business creation across their host countries. This pattern is frequently attributed to co-ethnic networks, pooled capital, and trust-based commercial relationships that lower barriers to market entry.
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| ===Chinese diaspora===
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| The Chinese diaspora has established significant entrepreneurial presences across Southeast Asia, North America, and Australasia. In Southeast Asia, ethnic Chinese entrepreneurs built some of the largest business conglomerates of the 20th century, of which [[Liem Sioe Liong]] is among the most documented examples: emigrating from Fujian province to Indonesia in 1936, he founded the [[Salim Group]], which became the largest business conglomerate in Southeast Asia.<ref>{{cite news |title=Founder of Indonesia's Salim Group dies at 97 |url=https://www.koreaherald.com/article/10365506 |work=Korea Herald |agency=AFP |date=12 June 2012 |access-date=21 March 2026}}</ref> In the United States, Chinese immigrants have established substantial commercial presences in the restaurant sector, with research documenting how Chinese employment agencies channel workers into restaurant jobs across the country, and how Chinese entrepreneurs have extended this niche vertically by owning the bus companies that transport these workers between cities.<ref name="Eckstein2018"/> Chinese immigrant business owners represented approximately 3.1% of all immigrant business owners in the United States in the late 2000s, with a business ownership rate of 10%.<ref name="Fairlie2015"/>
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| ===Indian diaspora===
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| Indian immigrants have demonstrated high rates of entrepreneurial activity across multiple host countries, with particularly strong concentrations in technology, retail, and financial services. In the United States, Indian immigrant business owners recorded the highest average business earnings of any immigrant group at approximately $84,080, driven largely by their high levels of education, with nearly 70% holding at least a four-year college degree.<ref name="Fairlie2015"/> Indian entrepreneurs have been especially prominent in Silicon Valley, where they built transnational networks linking American technology firms with talent and subsidiary operations in India, a pattern researchers have described as brain circulation, in which capital, expertise, and professional connections flow in both directions across borders.<ref name="Eckstein2018"/> Indian immigrants also established a notable concentration in the motel industry in the United States, where the Gujarati community in particular built a significant ownership niche through co-ethnic networks and pooled capital.<ref name="Eckstein2018"/>
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| ===Korean diaspora===
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| Korean immigrants have established some of the highest rates of business ownership of any immigrant group, with approximately 23.1% of Korean immigrants in the United States owning a business in the late 2000s.<ref name="Fairlie2015"/> Research comparing Korean and Iranian entrepreneurs in Los Angeles found that Korean businesses rely heavily on ethnic resources including unpaid family labour, co-ethnic employees, rotating credit associations, and co-ethnic customers, resulting in a concentration of smaller, co-ethnic facing businesses often located in low-income minority neighbourhoods.<ref name="MinBozorgmehr2000">{{cite journal |last=Min |first=Pyong Gap |last2=Bozorgmehr |first2=Mehdi |title=Immigrant Entrepreneurship and Business Patterns: A Comparison of Koreans and Iranians in Los Angeles |journal=International Migration Review |volume=34 |issue=3 |year=2000 |pages=707-738 |doi=10.2307/2675942}}</ref> Research on immigrant-owned businesses in Chicago documented a strong concentration of Korean entrepreneurs in clothing retail, with nearly 63% of Korean-owned storefronts in one commercial district engaged in clothing and related goods, and found that Korean-owned enterprises served as training platforms for further Korean self-employment, with workers frequently transitioning to ownership in the same line of business.<ref>{{cite journal |last=Raijman |first=Rebeca |last2=Tienda |first2=Marta |title=Immigrants' Pathways to Business Ownership: A Comparative Ethnic Perspective |journal=International Migration Review |volume=34 |issue=3 |year=2000 |pages=682-706 |doi=10.2307/2675941}}</ref> A similar pattern has been documented in the dry-cleaning sector, where Korean immigrants came to own a large share of dry-cleaning shops in American cities, building on experience first gained as employees in the same industry.<ref name="Eckstein2018"/>
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| ===Persian diaspora===
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| Iranian immigrants have recorded among the highest rates of business ownership of any immigrant group in the United States, with approximately 24.4% of Iranian immigrants owning a business in the late 2000s, the highest rate of any country of origin in major surveys.<ref name="Fairlie2015"/> Research comparing Korean and Iranian entrepreneurs in Los Angeles found that Iranian immigrants rely more heavily on class resources such as education, English fluency, and pre-migration business experience than on ethnic networks, in contrast to most other immigrant entrepreneurial groups. Iranian-owned businesses are characteristically larger, more geographically dispersed, and serve predominantly non-ethnic customers, a pattern that distinguishes them from the concentrated co-ethnic commerce typical of Korean or Chinese immigrant entrepreneurs.<ref name="MinBozorgmehr2000"/> Iranian immigration came in two waves: pre-revolution students and professionals who remained in the United States after 1979, and post-revolution exiles including religious minorities, both groups contributing to an exceptionally high rate of professional and entrepreneurial activity.<ref name="MinBozorgmehr2000"/> Qualitative research on Iranian women entrepreneurs in Los Angeles documented a range of home-operated and family-run businesses including clothing retail, grocery stores, and food production, in which ethnic networks, Persian language, and cultural knowledge of community needs served as competitive advantages.<ref>{{cite journal |last=Dallalfar |first=Arlene |title=Iranian Women as Immigrant Entrepreneurs |journal=Gender and Society |volume=8 |issue=4 |year=1994 |pages=541-561 |url=http://www.jstor.org/stable/189817}}</ref>
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| ===Lebanese diaspora===
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| Lebanese immigrants have established entrepreneurial presences across West Africa and Latin America, building commercial networks that in some regions predated independence. In West Africa, Lebanese traders established dominant positions in retail cloth and clothing, import-export, and light industry across Senegal, Côte d'Ivoire, Nigeria, Cameroon and other countries from the early twentieth century, leveraging family networks and community credit systems to sustain their commercial position across generations.<ref name="OBrien1975">{{cite journal |last=O'Brien |first=Rita Cruise |title=Lebanese Entrepreneurs in Senegal: Economic Integration and the Politics of Protection |journal=Cahiers d'Études Africaines |volume=15 |issue=57 |year=1975 |pages=95-115 |url=http://www.jstor.org/stable/4391369}}</ref> A survey of commercial establishments in Dakar in 1959 found that Lebanese entrepreneurs owned 77% of clothing and cloth retail shops and 81% of hotels, bars and restaurants in the city.<ref name="OBrien1975"/> The Lebanese diaspora in South America, which dates from the late 19th century, similarly developed prominent entrepreneurial communities across multiple countries, with Lebanese and Syrian migrants described by business historians as standing out in local business communities across the region, especially in commerce and services.<ref>{{cite web |last=Austin |first=Gareth |title=Emerging Markets and the Future of Business History |url=https://www.hbs.edu/ris/Publication%20Files/18-012_47e98088-6b60-4630-bf51-f6ca5abfe766.pdf |publisher=Harvard Business School |year=2018 |access-date=21 March 2026}}</ref>
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| ===Jewish diaspora===
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| Jewish immigrants have played a historically significant role in banking, finance, media, and retail across Europe and North America, with their entrepreneurial presence frequently shaped by legal restrictions on other occupations in their countries of origin. In the United States, German-Jewish immigrants were instrumental in the development of Wall Street and American investment banking during the 19th and early 20th centuries, founding firms that became central to the country's financial architecture. [[Marcus Goldman]], who arrived from Bavaria in 1848, founded what would become [[Goldman Sachs]], while [[Paul Warburg]], who emigrated from Hamburg in 1902, is widely credited as the primary intellectual architect of the [[Federal Reserve System]].<ref>{{cite web |title=Paul M. Warburg |url=https://www.federalreservehistory.org/people/paul-m-warburg |website=Federal Reserve History |access-date=21 March 2026}}</ref> In the media sector, Hungarian-born [[Joseph Pulitzer]] founded major American newspapers and endowed the journalism school and prize that bear his name, while the Warner brothers, born in Poland and Canada, founded [[Warner Bros.]] and helped establish the Hollywood studio system.<ref>{{cite encyclopedia |title=Joseph Pulitzer |encyclopedia=Britannica |url=https://www.britannica.com/biography/Joseph-Pulitzer |access-date=21 March 2026}}</ref><ref>{{cite encyclopedia |title=Warner Brothers |encyclopedia=Britannica |url=https://www.britannica.com/topic/Warner-Brothers |access-date=21 March 2026}}</ref>
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| ===African diaspora===
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| African immigrant entrepreneurs have established notable commercial presences in several host countries, often concentrating in specific service sector niches. In the United States, Ethiopian and Eritrean immigrants built a significant ownership presence in the taxi industry in Washington DC, transitioning from employment as drivers to ownership of the companies themselves through co-ethnic networks, in a pattern consistent with the stepladder model of immigrant business formation documented in other communities.<ref name="Eckstein2018"/> In Europe, refugee entrepreneurs from sub-Saharan Africa and the Middle East have established food, agricultural, and service businesses in rural areas of Sweden and other Nordic countries, with research finding that access to niche markets, community support, and government assistance were among the key motivating factors for business entry.<ref>{{cite journal |last=Barth |first=Henrik |last2=Zalkat |first2=Ghazal |title=Refugee entrepreneurship in the agri-food industry: The Swedish experience |journal=Journal of Rural Studies |volume=86 |year=2021 |pages=189-197 |doi=10.1016/j.jrurstud.2021.06.011}}</ref>
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| ===Hispanic diaspora===
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| Considerable entrepreneurial presence exists in the United States, though outcomes vary significantly by national origin. Mexican immigrants represent the largest single source country group among United States immigrant business owners, accounting for approximately 23.4% of the total, though their business ownership rate falls below the national average, a pattern attributed largely to lower average levels of education and wealth and, for undocumented individuals, barriers related to legal status. Cuban immigrants, by contrast, show a substantially higher business ownership rate of 14.8%, with self-employment rates found to increase in areas of high Hispanic residential concentration.<ref name="Fairlie2015" />
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| ==Women immigrant entrepreneurs==
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| Women have featured prominently among immigrant entrepreneurs across multiple sectors and host countries, though they remain underrepresented in the broader literature. Research on Iranian immigrant women entrepreneurs in Los Angeles found that gender shapes access to ethnic resources differently for men and women, with home-operated businesses representing a distinctive pathway for women who faced barriers to external employment, combining ethnic networks, cultural knowledge, and community trust as competitive advantages in sectors including clothing retail, food production, and personal services.<ref>{{cite journal |last=Dallalfar |first=Arlene |title=Iranian Women as Immigrant Entrepreneurs |journal=Gender and Society |volume=8 |issue=4 |year=1994 |pages=541-561 |url=http://www.jstor.org/stable/189817}}</ref> [[Joyce Chen]], who emigrated from China to the United States in 1949, founded restaurants, a cookware company, and a television programme credited with introducing Mandarin cuisine to American audiences.<ref>{{cite encyclopedia |title=Chen, Joyce (1918-1994) |encyclopedia=Encyclopedia.com |url=https://www.encyclopedia.com/women/encyclopedias-almanacs-transcripts-and-maps/chen-joyce-1918-1994 |access-date=21 March 2026}}</ref> [[Amina Moghe Hersi]], a Somali-Kenyan entrepreneur who emigrated to Uganda in 1998, built a multimillion-dollar business empire spanning real estate, hardware distribution, and manufacturing, and was named African Businesswoman of the Year by The New Economy in 2014.<ref>{{cite news |title=Spotlight: Real Muloodi Amina Hersi Moghe |url=https://realmuloodi.co.ug/spotlight-real-muloodi-amina-hersi-moghe/ |website=Real Muloodi News |access-date=21 March 2026}}</ref>
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| ==Academic perspectives==
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| Self-employment has been identified in the academic literature as a significant pathway for labour market integration among immigrant populations. Research indicates, however, that entrepreneurship yields stronger economic outcomes for high-skilled immigrants than for those with lower levels of formal qualification. Studies based on United States data suggest that immigrant-founded businesses tend to show greater employment growth over the medium term compared to native-founded businesses, though without a corresponding advantage in payroll growth, and with higher rates of both failure and expansion relative to native-founded firms.<ref name="Kerr2016" /> Immigrant-owned businesses have also been found to export at higher rates than native-owned businesses, a pattern attributed to commercial networks, shared language, and cultural ties with countries of origin.<ref name="Fairlie2015" />
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| Research on immigrant entrepreneurship in the United States high-tech sector has found that immigrant-owned firms demonstrate higher rates of innovation across a broad range of measures, including product innovation, process innovation, research and development, and patenting. A 2019 study found this advantage persists after controlling for demographic characteristics, start-up financing, motivations, and industry, suggesting it reflects a genuine difference in entrepreneurial behaviour rather than compositional factors.<ref name="Brown2019"/> A 2025 study of nearly 91,000 United States start-ups by researchers at UC Berkeley and the Cheung Kong Graduate School of Business found that ventures with mixed immigrant and native-born founding teams outperformed those founded by either group alone, employing 20% more people after three years, raising larger funding rounds, and filing significantly more patents. The researchers attributed the advantage to expanded access to international talent, capital, and markets.<ref>{{cite web |title=For startup success, teams with both U.S.-born and immigrant founders have an edge |url=https://newsroom.haas.berkeley.edu/research/for-startup-success-teams-with-both-u-s-born-and-immigrant-founders-have-an-edge-study-shows/ |website=UC Berkeley Haas School of Business |date=23 September 2025 |access-date=21 March 2026}}</ref>
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| A further strand of research examines the motivations behind immigrant entrepreneurship and its long-term economic outcomes. The blocked mobility hypothesis proposes that immigrants who face barriers to employment commensurate with their education and skills, including non-recognition of foreign qualifications, language barriers, and labour market discrimination, are more likely to turn to self-employment as an alternative route to economic advancement. Research on Korean and Middle Eastern immigrant entrepreneurs in Chicago found that these groups were significantly more likely than white or Hispanic business owners to cite labour market disadvantage as a reason for entering self-employment, consistent with the blocked mobility argument.<ref>{{cite journal |last=Raijman |first=Rebeca |last2=Tienda |first2=Marta |title=Immigrants' Pathways to Business Ownership: A Comparative Ethnic Perspective |journal=International Migration Review |volume=34 |issue=3 |year=2000 |pages=682-706 |doi=10.2307/2675941}}</ref> Over time, however, research suggests that self-employment can serve as an effective integration pathway. Studies based on United States Census data found that self-employment probabilities and earnings for immigrants increase with time spent in the country, with evidence that self-employed immigrants may approach earnings parity with observationally similar native-born entrepreneurs after approximately 25 years of residence, a convergence not consistently observed among immigrant wage and salary workers.<ref name="Fairlie2015"/>
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| ==See also== | | ==See also== |
| * [[Minority business enterprise]] | | * [[Minority business enterprise]] |
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| | * [[Entrepreneurship]] |
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| ==References== | | ==References== |
| {{Reflist}} | | {{Reflist}} |
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| | {{DEFAULTSORT:Immigrant entrepreneurship}} |
| | [[Category:Entrepreneurship]] |
| | [[Category:Immigration]] |
| | [[Category:Diasporas]] |
| | [[Category:Economic sociology]] |
| | [[Category:Labour economics]] |
Immigrant entrepreneurship is the founding and ownership of businesses by individuals who have relocated from their country of birth to another country. The concept encompasses a range of entrepreneurial activity, from self-employment and small businesses to the creation of larger firms and technology companies.[1] Research in the field examines factors including access to capital and networks, motivations for business formation, economic outcomes, and the relationship between migration and entrepreneurship.[2] It is an established subject of research in economics, sociology, business, and related fields.[3]
Definition and scope
Immigrant entrepreneurs operate across industries, populations, and host countries, and vary in both their backgrounds and business activities. They are studied as a distinct group because of the interrelationship between migration and access to resources, professional networks, markets, and employment opportunities.[1] The scale of this activity is reflected in OECD's International Migration Outlook 2024 which reported that migrant entrepreneurs accounted for approximately 17% of the self-employed population across OECD countries in 2022, up from 11% in 2006.[4]
Frameworks
Several theoretical frameworks have been developed to explain patterns of immigrant entrepreneurship. Ethnic enclave economy theory describes concentrated clusters of co-ethnic businesses that provide employment and economic opportunity within immigrant communities.[5] Middleman minority theory describes entrepreneurs who serve as intermediaries between dominant and subordinate groups.[6] Mixed embeddedness theory proposes that outcomes are shaped by both the resources of the immigrant community and the opportunity structures of the host economy.[7] The blocked mobility hypothesis claims that barriers to employment, including non-recognition of qualifications and labour market discrimination, may push some immigrants toward self-employment.[2]
Economic Contributions
Businesses founded by immigrants have been shown to contribute to employment growth, innovation, and international trade in their host economies. They establish businesses at higher rates than native-born populations across many developed economies,[3] and a 2024 report found that approximately 46% of Fortune 500 companies were founded by immigrants or their children.[8] In high-technology sectors, immigrant-founded firms show higher rates of patenting, research activity, and product development.[9] Immigrant-owned firms also participate in international trade at higher rates than native-owned firms, a pattern associated with transnational networks and knowledge of foreign markets.[2] Self-employment whiich common to immigrants, can also serve as a pathway to economic integration, with earnings among self-employed immigrants tending to converge toward those of native-born entrepreneurs over time.[2]
Diaspora and networks
Diaspora communities provide an important organisational and networking context for immigrant entrepreneurship. Members often function as economic intermediaries, bridging home and host country networks through shared language, cultural knowledge, and transnational ties.[10] Co-ethnic networks can provide access to information, resources, customers, and business relationships, while shared trust and social ties can facilitate business formation..[6][7]
See also
References
- ↑ 1.0 1.1 Template:Cite encyclopedia
- ↑ 2.0 2.1 2.2 2.3 Fairlie, Robert W.; Lofstrom, Magnus (2015). "Immigration and Entrepreneurship". Handbook of the Economics of International Migration. 1. Elsevier. pp. 877–911. doi:10.1016/b978-0-444-53768-3.00017-5. ISBN 978-0-444-63372-9. https://linkinghub.elsevier.com/retrieve/pii/B9780444537683000175. Retrieved on 2026-08-11.
- ↑ 3.0 3.1 Template:Cite report
- ↑ "Migrant entrepreneurship in OECD countries: International Migration Outlook 2024". 2024-11-14. https://www.oecd.org/en/publications/international-migration-outlook-2024_50b0353e-en/full-report/migrant-entrepreneurship-in-oecd-countries_72f44494.html.
- ↑ Light, Ivan; Sabagh, Georges; Bozorgmehr, Mehdi; Der-Martirosian, Claudia (1994). "Beyond the Ethnic Enclave Economy". Social Problems 41 (1): 65–80. doi:10.2307/3096842. https://academic.oup.com/socpro/article-lookup/doi/10.2307/3096842. Retrieved on 2026-08-11.
- ↑ 6.0 6.1 Min, Pyong Gap; Bozorgmehr, Mehdi (2000). "Immigrant Entrepreneurship and Business Patterns: A Comparison of Koreans and Iranians in Los Angeles". International Migration Review 34 (3): 707. doi:10.2307/2675942. https://www.jstor.org/stable/2675942?origin=crossref. Retrieved on 2026-05-17.
- ↑ 7.0 7.1 Salehi, Ali (2026-02-02). "Understanding the Nature of Ethnic Entrepreneurship: A Systematic Literature Review". Journal of Ethnic and Cultural Studies 13 (1): 276–308. doi:10.29333/ejecs/2252. ISSN 2149-1291. https://www.ejecs.org/index.php/JECS/article/view/2252. Retrieved on 2026-08-11.
- ↑ "Fortune 500 Companies Founded by Immigrants [2024"]. 2026-06-17. https://www.americanimmigrationcouncil.org/report/new-american-fortune-500-2024/.
- ↑ Template:Cite report
- ↑ Fang, Tony; Wells, Alex (2023). "Diaspora Economics". Handbook of Labor, Human Resources and Population Economics. Cham: Springer International Publishing. pp. 1–23. doi:10.1007/978-3-319-57365-6_105-1. ISBN 978-3-319-57365-6. https://link.springer.com/10.1007/978-3-319-57365-6_105-1. Retrieved on 2026-08-11.
