Archive for February 2016


How Cities Can Foster Growth with Immigrant Entrepreneurs

February 25th, 2016 — 3:07pm

Immigrant workers are far more entrepreneurial than many people realize. Immigrants have founded 18 percent of all Fortune 500 companies, and make up 18 percent of overall U.S. business ownership. Through a variety of businesses, immigrants are creating more jobs for American workers.

Many immigrants own Main Street businesses, such as restaurants, grocery stores and clothing stores. While many immigrants find themselves without resources to start these endeavors, some cities with large immigrant populations are developing programs to help these would-be business owners access the tools they need.

Historically, many immigrants have come to Chicago. Currently, the city’s Little Village neighborhood is home to the largest Mexican community in the Midwest, with a thriving commercial corridor along 26th Street. In fact, after downtown Chicago’s Magnificent Mile business, the 26th Street commercial corridor is the city’s second largest contributor to business tax revenue .

To foster similar development (and tax revenue), representatives from communities and sectors across the city developed the Chicago New Americans Plan to capitalize on immigrants’ potential as business owners. Through the plan, new programs help provide immigrants with resources to start their own businesses. For example, the Restaurant Startup Guide and program simplifies the business application process and specifies zoning and permit particulars, helping expedite restaurant launches.

While Chicago has served as a well-known immigrant hub for generations, other cities are now welcoming new immigrants. Dayton, Ohio created the “Welcome Dayton” plan to integrate these new residents into the community. Along with this, the Ohio Small Business Development Center, as part of the federal Small Business Administration, helps immigrants overcome the barriers to starting a business and bridge the gaps between community groups to help potential entrepreneurs learn about valuable resources.

Similarly, Nashville, Tennessee is also steadily developing resources to extend its welcome mat to immigrants. Groups like the Tennessee Immigrant Refugee Rights Coalition and Conexión Américas are working to educate immigrants on business ownership. Since its inception in 2009, the Mayor’s New Americans Advisory Council has transformed from bridging the city’s immigrant communities and the Metro Government to become the Nashville Mayor’s Office of New Americans. The office helps immigrants access resources for economic and educational opportunities.

While these cities’ welcoming actions are laudable, they’re also driving important conversations about what cities and immigrants want and need. Cities seeking the benefits of immigrant entrepreneurship are finding great value in offering resources to help immigrants launch new businesses. Beyond the city’s revenue streams, entire communities benefit from a strong small business climate

In turn, pairing comprehensive immigration reform with these expanded entrepreneurship programs will benefit everyone: immigrants, cash-strapped cities and communities.

Comment » | Immigration Policy Center, Immigration reform

How Does Immigration Really Affect the U.S. Economy?

February 5th, 2016 — 5:00pm

As of 2013, nearly 41 million immigrants live in the U.S., about 13 percent of the total population. Nearly 11 million of those individuals are undocumented. Through these immigrants, the U.S. is still a melting pot of ethnic and cultural diversity, while immigration itself remains a heated issue.

Debates on immigration often entail discussing the impact immigrants have on the U.S. economy. Increasingly, research finds that the economic impacts are positive.

Nearly 26 million foreign-born workers are in the U.S. labor force, including both lawful permanent residents (LPRs) and undocumented or unauthorized immigrants. Within the same workplace, it’s common for foreign-born workers to work side by side with native-born workers. These two groups tend to complement each other, rather than taking away jobs for native-born workers.

In 2013, Americas Society/Council of the Americas and the Fiscal Policy Institute reported that foreign-born workers made up 18 percent of overall U.S. business ownership, with 28 percent of Main Street business — such as grocery stores, restaurants and clothing stores — owned by foreign-born workers. These small businesses create jobs while serving their communities.

Many of the jobs employing foreign-born workers fall in the STEM (science, technology, engineering and math) fields, where talent supply has not kept up with demand. With the unemployment rate in these fields so low, and the demand for STEM workers so high, employing foreign-born workers has little effect on the unemployment rate of native-born workers.

 Research finds that leveraging foreign-born workers in STEM fields tends to create jobs. A 2012 report from the Information Technology Industry Council, the Partnership for a New American Economy and the U.S. Chamber of Commerce found that, “[E]very foreign-born student who graduates from a U.S. university with an advanced degree and stays to work in STEM has been shown to create on average 2.62 jobs for American workers — often because they help lead in innovation, research and development.”

In fact, 18 percent of all Fortune 500 companies were founded by immigrants. These companies, such as Verizon, Procter & Gamble, eBay, Google and Comcast, have generated nearly $2 trillion in annual revenue as of 2010, with 3.6 million workers worldwide.

Overall, foreign-born workers contribute positively to the U.S. economy, greatly outweighing the negatives cited by anti-immigration activists. Highly-educated immigrants create more jobs, often though their own companies, fueling economic growth that is sometimes overlooked during the heated immigration debate. With the push for comprehensive immigration reform growing stronger, the economic benefits speak volumes. As the nation moves forward from the Great Recession, let’s not lose sight of positive impacts on the economy — immigration included.

Comment » | Immigration Policy Center, Immigration reform

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