Entrepreneur.com Daily Dose Blog

Newcomers Create New Businesses

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A Small Business Administration report (PDF) released this month finds that immigrants in the United States are 30 percent more likely to start a business than native-born Americans. The research, conducted by UC Santa Cruz professor Robert W. Farlie on behalf of the SBA's Office of Advocacy, finds that immigrant-spawned enterprises generate $67 billion annually--11.6 percent of American business revenue.

"Immigrant business owners make important contributions to the U.S. economy," Farlie states. "They start 16.7 percent of all new businesses in the United States and represent 12.5 percent of all business owners."

Some of the report's findings won't come as much of a surprise. In the immigrant-rich state of California, for example, where even its governor has overseas provenance, more than a third of new businesses registered each month are started by immigrants. Similarly, in Florida, Texas and New York, 30 percent of start-ups have immigrant roots.

Immigrant-owned businesses in the Golden State account for nearly one-quarter of business revenue there. Nationwide, Mexico contributes the largest number of immigrant business owners--255,300; Korea comes in second with 90,280.

"... In total counts and dollars, immigrants from Mexico contribute the most to total U.S. business ownership, formation and income," Farlie states.


6 Comments | | Posted under: Ideas, Marketing, Startup
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6 Comments

You just don't believe in your product:)

I believe that new comers help to boost the economy because it 'does' create jobs. You have to be open minded today - unless you're business is a local bakery shop or construction business, you have to consider doing business globally like we have done at Biztrader.com.

It's natural that those immigrants feel more likely to start a business than the native-borns because the later have less choices but to struggle harder. As a result, the possibility of their success is bigger.

I agree with Mike. How can this be a fair statement without providing other details of why immigrants will open more businesses. They are more likely because they get the assistance. My family has served in the military and paid taxes faithfully for years. They tried to open a simple hot dog shop and couldn't get the financing. We are lower-middle-class, white, and native-born, therefore we do not qualify for benefits. If we made less money and had 20 more kids we would qualify, if we were black or hispanic we would qualify, and if we were from India we would qualify. It's a case of reverse discrimination and inequality. We need to help our own first.

As a born American starting my own business a few years back http://www.hfbadvertising.com was great. But growing up in a household where my dad worked for 25 years a back office was the way I was brought up. People who are not from this country have no choice and have to start a business because they have no other way. They get to do the American dream and the govt helps them out more with loans then their own people who were born here.

This country needs a better sence of self.
Being a patriot isin't just holding a flag at a baseball game. Other people come to this country and see how wonderful it is and take full andvantage,while some from right here in the US cant see the forest for the trees.

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