Immigrant entrepreneurship: Difference between revisions
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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" /> | |||
Revision as of 18:58, 21 March 2026
Template:User sandbox Immigrant entrepreneurship refers to the founding or ownership of businesses by individuals who have immigrated to a country other than their country of birth. Notable examples include Andrew Carnegie,[1] Alexander Graham Bell,[2] and Elon Musk[3] in the United States; Paul Julius Reuter, who built his news agency in Britain; and James de Rothschild, the Frankfurt-born banker who founded the French branch of the Rothschild dynasty.
Patterns and prevalence
Immigrants start businesses at higher rates than native-born populations in many developed countries including the United States, United Kingdom, Canada, and Australia.[4] In the United States, the foreign-born share of business owners more than doubled between 1980 and 2010,[5] while immigrant entrepreneurs accounted for approximately 24% of new business founders between 1995 and 2008, with that share rising from 17% in 1995 to 27% in 2008.[4]
Entrepreneurship by sector
Technology
Immigrant founders have played a prominent role in the technology industry. A disproportionate share of United States technology companies founded between 1995 and 2005 had at least one immigrant co-founder.[6] Among venture capital-backed firms in the United States specifically, immigrants constituted approximately 30% of founders in 2005, modestly exceeding their overall share of entrepreneurial activity.[4]
Finance and banking
Immigrant entrepreneurs have historically been significant in banking and financial services, including the establishment of several major European banking dynasties in the 18th and 19th centuries.[7]
Media and entertainment
Immigrants and their descendants have founded major media companies and contributed significantly to the entertainment industries of their adopted countries.[8]
Retail and food
Immigrant-owned businesses are heavily represented in retail, hospitality, and food services across most developed economies.[9]
Entrepreneurship by diaspora
Certain diaspora communities have historically shown high rates of business formation, often supported by co-ethnic networks, shared capital, and trust-based trade relationships. Notable examples include:
- Chinese diaspora - Significant commercial presence across Southeast Asia, North America, and Australasia.
- Indian diaspora - Prominent in technology, retail, and finance, particularly in the United States and United Kingdom.
- Lebanese diaspora - Notable entrepreneurial activity across West Africa, Latin America, and the Americas more broadly.
- Jewish diaspora - Long-standing involvement in finance, media, and retail across Europe and North America.
- Hispanic diaspora - Significant entrepreneurial presence in the United States, particularly in construction, food services, retail, and entertainment, with growing representation in technology and professional services.
Host country policies
Many developed countries have introduced special visa programs to attract immigrant entrepreneurs, though the effectiveness of such programs remains an active area of research.
Academic perspectives
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.[4]
- ↑ Gould, Sam (1995). "Andrew Carnegie: Scottish Immigrant, Entrepreneur, Philanthropist". University of Dayton Review 23 (3). https://ecommons.udayton.edu/udr/vol23/iss3/5.
- ↑ "Alexander Graham Bell (1847–1922)". BBC. https://www.bbc.co.uk/history/historic_figures/bell_alexander_graham.shtml.
- ↑ Sommerlad, Joe (6 February 2025). "Elon Musk, who arrived in the U.S. at age 31, is being questioned on his citizenship again. What to know". The Independent. https://www.independent.co.uk/news/world/americas/us-politics/elon-musk-citizenship-us-south-africa-canada-b2693635.html.
- ↑ 4.0 4.1 4.2 4.3 Kerr, Sari Pekkala; Kerr, William R. (2016). "Immigrant Entrepreneurship". NBER Working Paper (17-011). https://www.hbs.edu/ris/Publication%20Files/17-011_da2c1cf4-a999-4159-ab95-457c783e3fff.pdf.
- ↑ Lofstrom, Magnus. [https://wol.iza.org/articles/immigrants-and-entrepreneurship/long "Immigrants and Entrepreneurship"]. IZA World of Labor. 2019.
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