Immigrant entrepreneurship
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] 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.[6]
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.[7] 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.[8]
Media and entertainment
Immigrants and their descendants have founded major media companies and contributed significantly to the entertainment industries of their adopted countries.[9]
Retail and food
Immigrant-owned businesses are well represented in retail, hospitality, and food services across most developed economies, often serving both general consumer markets and co-ethnic communities. In the United States, construction, professional services, and other services each account for more than 15% of immigrant-owned businesses, with retail trade, health care, and accommodation also representing significant concentrations.[6]
Entrepreneurship by diaspora
Several diaspora communities have demonstrated sustained rates of business creation across thier host countries. This pattern is frequently attributed to co-ethnic networks, pooled capital, and trust-based commercial relationships that lower barriers to market entry.
Chinese diaspora
Substantial commercial presence has been documented across Southeast Asia, North America, and Australasia.
Indian diaspora
Activity is concentrated in technology, retail, and financial services, particularly in the United States and United Kingdom.
Lebanese diaspora
Established entrepreneurial networks are present across West Africa and Latin America.
Jewish diaspora
Historically significant involvement in finance, media, and retail has been documented across Europe and North America.
Hispanic diaspora
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.[6]
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] 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.[6]
- ↑ 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.
- ↑ 6.0 6.1 6.2 6.3 Fairlie, Robert W.; Lofstrom, Magnus (2015). "Immigration and Entrepreneurship". Handbook of the Economics of International Migration. 1B. Elsevier. pp. 877-911. https://people.ucsc.edu/~rfairlie/papers/published/handbook%20chapter%20immigrant%20entrepreneurship%202015.pdf.
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