I’m in New York City today with my colleague and co-author, Jeff Gross, for the 9th New York University/ Stern Business School Social Entrepreneurship Conference. We’re taking this opportunity to share our research on immigrant entrepreneurship in the context of social entrepreneurship — placing the focus on government as the social entrepreneur existing in a context, or ecosystem, that fuels immigrant business development for social and economic aims.
First, some facts:
- Forty million U.S. residents, or 13% of the population (2010), are now foreign born – up from less than 5 percent in 1970.
- Foreign born residents of the U.S. start businesses at twice the rate of natives—and immigrant-owned businesses produced 16% of all business income in 2010 (up from 11.5% in 2000).
- Skilled migrants beat college-educated natives in starting companies and commercializing technology.
- Immigrant entrepreneurs have founded 40 percent of current Fortune 500 companies.
- Immigrants have founded or co-founded 25 percent of all science and technology firms in the U.S.
For immigrants across the economic spectrum, starting a business is increasingly the path to economic advancement. Immigrant community stakeholders are working to keep up with and leverage this rapidly evolving social and economic reality. And here’s where it gets really interesting: the public and private sectors are active participants now working out innovative approaches that target this immigrant entrepreneurial spirit and the particular challenges that may be involved. States and cities around the U.S. are shaping “New American” programs to support community economic development and attract these business innovators. Many see here a powerful force for simultaneously addressing immigrant integration, socioeconomic mobility, and community economic benefit.
Using organizational theories[i] we can identify a particular embeddeddness of immigrant entrepreneurs as Social Bricoleurs (creating value at the community level), Social Constructionists (value at the regional and national level) and Social Engineers (global level). We can also identify different levels of government and their roles in making the ecosystem of immigrant entrepreneurship in the U.S. move.
Case in point: New York City. The population of this amazing city is made up of 37% foreign born and 48% of its small businesses are immigrant owned. As social entrepreneur, the Mayor’s office partners with financial institutions, non-profits and community groups to address social and economic obstacles facing immigrant businesses, large and small. Multiple initiatives and public/private partnerships provide training and technical assistance, tax breaks, assistance developing capital, building networks and access to markets. Efforts integrated with broader economic development plans target opportunities in specific immigrant neighborhoods and industry sectors—from food production to fashion to high tech. The purpose here is economic prosperity while advancing immigrant civil rights, civic participation and a celebration of ethnic diversity as a social, cultural and economic good.
State/National Level: Washington. The state of Washington is one of 11 states with “New American” immigrant integration initiatives driven by community-based groups. A statewide nonprofit immigrant advocacy coalition is the lead partner with government in advancing a policy agenda of civil rights, cultural diversity, and civic engagement. A New Americans Policy Council promotes immigrant economic contributions and the value of an “untapped potential resource” to drive economic development and neighborhood revitalization. Strategies include improved capital access, streamlined regulations, and investments in microcredit, business incubators, certification assistance, and business mentoring
National Level: Federal Policies. At the federal level, the “immigrant entrepreneur” conversation focuses on expanding visa opportunities and tax credits to attract and retain foreign-born investors and technology innovators. In response to the development needs of states and communities with high unemployment, the federal EB-5 investor visa program offers a resident visa in return for significant investment and job creation. Conservative and liberal interests alike promote visa policies that reduce entry barriers for skilled immigrants and keep the businesses and jobs they create in the U.S. But a politicized debate over comprehensive immigration reform pits different groups of immigrants, including skilled entrepreneurs, against one another as the total number of visas is limited and family reunification is the preferred status.
As the U.S. presidential election results last night strongly demonstrated, the power of the immigrant has returned front and center to our national stage. We’re at a decisive moment of determining how policy and government initiative can turn this energy to multiple value points in a context of social entrepreneurship, which at its heart, asks for common good as a social and economic indicator. This is not how we have traditionally organized economic development that includes high growth businesses. It makes sense that we continue to makes these links to have the broadest view creating the broadest benefit.
[i] Zahra, et al. 2009; Smith & Stevens, 2010
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