Immigrant Entrepreneurship in America: Evidence From the Survey of Business Owners 2007 & 2012

Abstract

We study immigrant entrepreneurship in 2007 and 2012 using the Survey of Business Owners. First-generation immigrants create about 25% of new firms in America, but this share exceeds 40% in some states. Immigrant-owned firms tend to create fewer jobs than native-owned firms, have comparable pay levels, offer fewer benefits, and engage more in international activities. Immigrant-founded firms in high-tech sectors more closely resemble native-founded firms than in low-tech sectors. Prominent tech clusters display quite pronounced shares of immigrant entrepreneurs, with stronger high-tech immigrant entrepreneurs being especially present. Second-generation immigrants tend to show intermediate firm traits indicative of business assimilation.