Immigrant Entrepreneurs: Drive the Economy
Carpe Diem - Immigrants Seize Entrepreneurial and Educational Opportunities
They may be small in number, but immigrants are starting businesses at a higher rate than entrepreneurs who were born in the United States. Recent data from the SBA and Census Bureau shows a 0.62% rate of business formation among immigrants, compared to a 0.28% rate for non-immigrants.
Moreover, immigrants are making inroads in other ways toward establishing solid futures in the U.S. They also lead the way when it comes to higher education – despite the fact that immigrants make up just 12.9 percent of the U.S. population.
|Infographic: Immigrant Entrepreneurs © CreditDonkey|
Entrepreneurial Immigrant Profile
While immigrants come to the U.S. from all regions of the world, current figures indicate that the vast majority of foreign-born U.S. residents are from Asia, Latin America, and Caribbean countries. These individuals are making the West and East Coasts their home, with the states with the highest percentage of foreign born-residents being California, New York, New Jersey, Florida, and Nevada.
Interestingly, the foreign-born population tends to be younger than native-born U.S. residents; they also have a higher percentage of marriage rates and lower percentage of divorce rates. The Census Bureau indicates that immigrants also have a higher employment rate, which could be partially contributed to the lower age; half of U.S. foreign residents are between the ages of 18 and 44, compared to just 35% of U.S. native-born residents. But education could also be a contributing factor, as highlighted in the next section.
Immigrants have quite a bit to celebrate in the U.S.
Where education is concerned, the foreign-born U.S. population is leading the way in math and science; they represent 20.9 percent of residents with a bachelor’s degree or higher in the science and engineering fields. This includes bachelor’s degrees in computer sciences, mathematics, statistics, physical sciences, biology, agricultural science, and environmental sciences. Of the immigration population, individuals born in an Asian country have the highest educational attainment.
And, when it comes to business, there’s quite a bit to celebrate, too, with business ownership rates higher in the immigrant versus non-immigrant population. Interestingly, these businesses have a higher rate of exported goods.
Areas of Opportunity
While foreign-born U.S. residents have a higher rate of business ownership, data also shows that these individuals have a lower amount of sales, employees, and payroll. They also have a lower level of bank loans to help fund their business ventures.
Immigrants could help expand their business by learning more about bank loans and business credit. By building your knowledge of financing options, you’ll know what steps you need to take so you are prepared to act when it’s time to expand your business. We have an entire library of articles dedicated to identifying and securing business credit here: www.creditdonkey.com/blog/business/
(Research and Writing by Kelly; Graphic Design by Santosh; Additional Writing by Meghan; Editing by Maria and Sarah)
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