US Immigrants Found to Frequently Establish Businesses, Generate Employment Opportunities
Starting Up in the States: Immigrants and Entrepreneurship
Scrutinizing registered firms across the nation, a study spearheaded by an MIT economist unveils a startling revelation - immigrants to the USA are apparently 80% more likely to start businesses than their American-born counterparts.
The striking findings are outlined in a paper titled "Immigration and Entrepreneurship in the United States," penned by a team that includes Pierre Azoulay, an economist from MIT Sloan School of Management, Benjamin Jones from Northwestern University, J. Daniel Kim from the University of Pennsylvania, and Javier Miranda from the U.S. Census Bureau.
Examining various data sources, the team investigated the watertight link between immigration and entrepreneurship in the States. They analyzed all new businesses founded from 2005 to 2010, a whopping total of 1.02 million companies. This enabled them to observe patterns of firm creation and job growth over a five-year period.
Unfortunately, those records only covered new businesses formed after 2005. To catch up on the businesses that came before, they scoured the 2012 U.S. Census Bureau's Survey of Business Owners, which contains data on 200,000 businesses, including details about the owners. They also delved into the 2017 Fortune 500 list, pinpointing the citizenship and immigration status of founders of 449 of those large corporations.
Intriguingly, the study suggests that immigrants create more companies not just in the small- and medium-size markets, but also in established, high-growth industries. Contrary to popular beliefs that immigrants merely occupy jobs that Americans could have held, the study reveals that immigrants are 'job creators' rather than 'job takers.'
Drawing from the facts at hand, the study indicates that immigrants play a crucial role in job creation, contributing significantly to labor demand and unfurling a net gain in employment opportunities [1]. The trend highlights a diversity of scenarios, some immigrants starting small, subsistence businesses, while others delve into high-growth, high-tech ventures [1].
It's worth noting that determining a firm's founders solely based on immigration status isn't always a black-and-white issue, as some firms have multiple founders, including mixtures of immigrants and natives. The research team devised multiple strategies to classify firm data and observed consistent results, regardless of the method applied [1].
In essence, the study affirms the positive impact that immigration has on the economy, showcasing immigrants' propensity to launch and sustain businesses at rates higher than native-born Americans. Without doubt, their enterprises contribute significantly to job creation across the board [1].
- The research on immigrants and entrepreneurship in the United States, published by a team including an MIT economist, reveals that immigrants are 80% more likely to start businesses than their American-born counterparts.
- The study suggests that immigrants not only create businesses in small and medium-size markets but also in established, high-growth industries, debunking the popular belief that they merely occupy jobs Americans could have held.
- The findings of this study indicate that immigrants play a significant role in job creation, contributing to labor demand and unfurling a net gain in employment opportunities, regardless of whether they start small, subsistence businesses or high-growth, high-tech ventures.
- The study's results underscore the positive impact that immigration has on the economy, as immigrants' enterprises contribute significantly to job creation across various sectors, and their propensity to launch and sustain businesses at rates higher than native-born Americans is evident.
