NEWSRELEASE
For Release: November 12, 2008
Contact: John McDowell,
(202) 205-6941
john.mcdowell@sba.gov
SBA Number: 08-32 ADVO
Immigrant-Owned Businesses Contribution To The Economy
Detailed In New Report
First Research To Study Ownership Rates, Business Income
WASHINGTON, D.C. – Immigrant-owned businesses generate approximately 11.6 percent of all business income in the United States. Moreover, immigrants own 11.2 percent of businesses with $100,000 or more in sales and 10.8 percent of all businesses with employees. These figures are contained in a report released today by the Office of Advocacy of the U.S. Small Business Administration.
“This report is the first time that immigrant business ownership rates and immigrant-owned businesses contributions to the economy have been studied in detail,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. “These findings can make a significant contribution to public policy debates,” he added.
The report, Estimating the Contribution of Immigrant Business Owners to the U.S. Economy, written by Dr. Robert Fairlie with funding from the Office of Advocacy, analyzes data from the 2000 Census five percent Public Use Microdata Sample, the 1996-2007 Current Population Survey, and the 1992 Characteristics of Business Owners.
By creating a longitudinal dataset matching consecutive months of the CPS, the author found:
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Immigrants represent 12.5 of all business owners.Ø
Immigrants are 30 percent more likely to start a business than non-immigrants are.Ø
Immigrant business owners are concentrated in certain states, including California, New York, New Jersey, Florida, and Hawaii.Ø
Mexicans represent the largest number of immigrant business owners, while Greeks, Koreans, and Iranians have the highest ownership rates.The report was released at a panel discussion jointly organized by the Minority Business Development Agency of the U.S. Department of Commerce and the Office of Advocacy.
The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.
For more information, visit the Office of Advocacy web site at
www.sba.gov/advo.###
The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit
www.sba.gov/advo, or call (202) 205-6533.