New Businesses in the U.S. — Most are Established by Immigrants

In 2023 immigrants started more new businesses than U.S. born citizens. The rate at which they established those businesses is double that of people born here. And many aren’t citizens.

The opening statements of this story come from a study of federal government labor statistics and census data done by UCLA professor and economist, Robert Fairlie.

Here’s what he found:

• 670 out of 100,000 immigrants — or 0.67% — launch new businesses every month in the United States
• The overall average for adults in the U.S. is 0.35%
• Latinos started more businesses than any group at 0.6% — or 600 out of every 100,000
• The number is 0.34% for African Americans
• The number is 0.31% for Asian Americans
• The number is 0.28% for white Americans

Gustavo Suarez owns and operates TREZ,  the nation’s first payroll platform for Latino businesses in the U.S. He said when they arrive, most immigrants have a mindset “of wanting to improve their lives, of wanting something better, of wanting to create impact.”

They apparently do. Those businesses — a recent Stanford Latino Entrepreneurship report said — contribute $800 billion to the U.S. economy.

• The median growth rate for Latino businesses was 25% from 2019 to 2022
• It was just 9% for white and other non-Hispanic owned businesses
• Federally-backed loan programs to Latino businesses hit a record $3 billion in 2023
• That number is double over 2021’s loans

Source link: AXIOS — https://bit.ly/4aEtxad