A recent study conducted by economists highlights the significant impact immigrant entrepreneurs have on the U.S. economy. Immigrants contribute disproportionately to entrepreneurship in the country, with a quarter of new employer businesses in the U.S. being founded by immigrants. Additionally, immigrant entrepreneurs are overrepresented as founders of innovative firms and in the high-tech industry, with many of the most valuable private and public companies having immigrant founders, according to the research.
The study found that a significant percentage of America’s startup companies valued at $1 billion or more had at least one immigrant founder, with nearly two-thirds founded or cofounded by immigrants or their children. Immigrants also played a key role in founding the top artificial intelligence companies in the U.S., further showcasing their impact on innovation and entrepreneurship in the country. The growth of immigrant entrepreneurship has been widespread across all states, rather than concentrated within a few locations, according to the economists.
Immigrant entrepreneurs are known for their innovative ideas and ability to bring new technologies to market. The study found that businesses owned by immigrants are more likely to have patents and produce new technologies compared to those owned by non-immigrants. Immigrant entrepreneurs tend to be more strongly linked to innovation, suggesting a positive impact on economic growth, labor adjustment, and the development of tech clusters in the U.S. However, there is still much to learn about why immigrants are so entrepreneurial, according to the economists.
Some immigrant entrepreneurs, like Eric Yuan, founder of Zoom Video, have overcome challenges to start successful businesses in the U.S. Yuan’s experience of being denied a visa multiple times before coming to America highlights the obstacles faced by immigrant entrepreneurs. Despite these challenges, immigrant entrepreneurs continue to play a vital role in job creation and economic growth in the U.S. Harvard Business School Professor William Kerr believes that making it easier for entrepreneurs and international students to come to and stay in America would benefit the U.S. economy and contribute to its success in high-tech and growth-oriented sectors.
