A new study conducted by the NY think tank Center for an Urban Future found that "the growing number of immigrant entrepreneurs in major U.S. cities is giving a huge lift to urban economies and even outpacing self-employed native-born Americans."
According to an article in USA Today by Edward Iwata:
"It’s not just a handful of mom-and-pop enterprises," says Jonathan Bowles, director of the Center for an Urban Future, a non-profit think tank in New York that conducted the study. "Immigrants have become a real engine for economic and job growth in many sectors."
Immigrants, of course, have started small shops, restaurants and other neighborhood businesses throughout U.S. history.
But with the fast-rising immigrant population in recent years, highly skilled immigrant entrepreneurs in many industries are creating broader "enclave economies" of supermarkets, food-manufacturing companies, health clinics, banks, law firms, high-tech start-ups and other companies.
The report, "A World of Opportunity," says the immigrant economy is thriving in:
•Los Angeles. Immigrants started 22 of the city’s 100 fastest-growing businesses, including Red Peacock International, a consumer electronics wholesaler; PriceGrabber.com, an online comparison-shopping store; and Norstar Office Products, a workplace furniture company.
Los Angeles County also boasts more businesses owned by Latinos and Asians than any U.S. county.
•New York. While the number of businesses citywide rose only 9.6% from 1994 to 2004, the number of firms exploded in immigrant neighborhoods such as Flushing (55%), Sunset Park (47%), Sheepshead Bay-Brighton Beach (34%) and Washington Heights (18%).
Job growth in immigrant neighborhoods also outpaced New York’s citywide job gain of 7%. The job rate grew 28% in Jackson Heights, 23% in Sunset Park and 13% in Sheepshead Bay-Brighton Beach.
•Houston. Perhaps best known for its energy and oil industry, Houston has a teeming economy of tens of thousands of immigrant entrepreneurs, from Mexico, Vietnam, China, Nigeria and other countries.
Little known outside Texas, Houston boasts a suburban Asian business district of strip malls, shopping centers and offices along Bellaire Boulevard. A real estate developer and Vietnamese immigrant from the area, Hubert Vo, is a Texas state lawmaker.
Why the surge in immigrant entrepreneurs?
Many come from strong merchant cultures — such as Syria, Iran, Greece, South Korea, Israel and Brazil — that have existed for centuries, according to Bowles. Millions are well-educated, middle-class professionals. And many possess the same drive to succeed as U.S. business leaders.
"A lot of immigrants are the cream of the crop," Bowles says. "They have highly developed skills, a work ethic, good education, business backgrounds," he says. "They took big risks and sacrificed a lot to get here, and they put that same spirit into their companies."
Even with the economic progress, however, Bowles says, many immigrants lack language skills, access to financing and knowledge of the U.S. legal system and business regulations. Cities, especially those with lagging economies, need to do more to pump up their often-hidden immigrant economies, he says.
Aside from the obvious governmental issues, seems like a lot more competition is headed our way, are you ready?
-Susan Martin, NYC Business Coach
