The 2nd Biennial Engaging Immigrant Entrepreneurs & Small Business Owners Forum
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This document summarizes information presented at the 2nd Biennial Forum on Engaging Immigrant Entrepreneurs & Small Business Owners on November 13, 2015. It discusses the need to understand why immigrants start businesses, their development paths, and the enablers and barriers to their success. It then provides an overview of social forms of production, enterprise development stages, and the differing characteristics of self-employment, small businesses, and growth businesses. Finally, it introduces Alvaro Lima from Bunker Hill Community College and Denzil Mohammed from the Immigrant Learning Center as presenters at the forum.
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The 2nd Biennial Engaging Immigrant Entrepreneurs & Small Business Owners Forum
- 1. The 2nd Biennial Forum on Engaging Immigrant Entrepreneurs & Small Business Owners November 13, 2015
- 2. Engaging Immigrant Entrepreneurs & Small Business Owners Forum What we need to know? Alvaro Lima Director of Research, BRA Bunker Hill Community College November, 2015
- 3. We need to know: Why they are in business What are their development paths What are the enablers and barriers for success
- 4. SOCIAL FORMS OF PRODUCTION production for income production for direct use production for profit Self- employment (micro- businesses) Small businesses Growth businesses Employment & Revenue Size & Capital Structure 1. 1-2 people & < 10K & < $100K 2. < 500 people & < $20M … 3. > 500 people … Financial Structure & Ability to Leverage 1. Simple cash flow & no ability to leverage 2. Bank financing 3. External financing, investors, VC, investment banks Management Structure 1. Hands-on worker & control everything 2. Management across all functions 3. Professional management, board, investors Skill Sets 1. Finding & servicing customers 2. Detailed understanding of industry 3. Financial and organizational skills Employment Size & Structure Technology, Production & Markets 1. Low to no technology 2. Single technology, production & markets 3. Multiple products, technology & markets Success 1. Make enough individual income & control lifestyle 2. Salary & Profits & Value of Company 3. IPO/share price Production for Profit – How do they differ? Ownership Structure 1. Single owner or not incorporated 2. Independently or family owned 3. Limited liability & more complex legal structure
- 5. ENTERPRISE DEVELOPMENT BENEFITS • Independence • Limited liability (easy to exit) • Ability to gain more than wage CHALLENGES/ LIMITATIONS • Volatility/high failure rate • Limitations to profit • Limited capacity BENEFITS • Improved stability • Higher profit • Improved customer reach CHALLENGES/ LIMITATIONS • Increased competitive threat • More difficult to exit • Higher managerial involvement needs • Limited capacity BENEFITS • Lower failure rate • Steady profit • Further customer reach • Scale economies CHALLENGES/ LIMITATIONS • Management delegation • Attracting skilled managers • Growing IT/ computer needs Domestic & Wage Labor Self- employed Small Employer Growth Business ENABLERS • Build reputation and steady client base • More capital - fixed costs • Get licenses/ permits ENABLERS • Expand client base • Expand org. structure • Get mgmt. training • Get loans variable costs fixed costs technical skills managerial skills income target return on capital entry points ? ? ENABLERS • Easy to start – easy to reach customers – little skill training – low capital requirements • Fast breakeven ? progression
- 6. Denzil Mohammed Public Education Institute Director Immigrant Learning Center
- 8. Immigrant Entrepreneurs in MA Statistical Profile, Characteristics, Contributions Denzil Mohammed Director, Public Education Institute, The Immigrant Learning Center, Inc., Malden, MA
- 9. The ILC Public Education Institute • 1992: The ILC is started to provide free English classes for foreign-born adults – 8,500 to date. • 2003: The ILC Public Education Institute is established to counter anti-immigrant sentiments.
- 10. The ILC Public Education Institute • Started in 2003 to tell the other side of the story • Commissioned research to develop credible, alternative narrative documenting economic and social contributions • Free, national webinars for immigrant-serving organizations, educators, etc. • Immigrant Entrepreneur of the Year Awards • Inform policy, media, public, field
- 11. Institute for Immigration Research Institute for Immigration Research at GMU: www.iir.gmu.edu
- 12. Immigration Quiz Immigrants comprise what share of the Massachusetts population?
- 13. Which of these companies was not founded by an immigrant? Immigration Quiz
- 14. Immigrants in Massachusetts 15.6% Share of state population (983,389) 35.3% Growth in immigrant population 2000-2013 (Higher than national average of 32.9%) 52.5% Share of immigrants who are naturalized citizens (46.7% nationally)
- 15. Immigrants in Massachusetts Top 3 countries of origin, 2011: 1. China 2. Brazil 3. Portugal Immigrants by race and ethnicity: 1. 25.1% Asian 2. 21.9% Latino 3. 15.6% Black/African American
- 16. Immigrants in MA Highest immigrant concentrations: 1. Chelsea 2. Malden 3. Lawrence •Adult immigrants likely to be both less educated and more highly educated than native-born. •Immigrants are overrepresented at the high and low ends of the occupational distribution. •Immigrants have a high propensity to pay taxes: 16.7% share of state income tax filers.
- 17. • Immigrants make up 16.3% of the labor force, more than their share of population. • More than 70% of immigrants are between 25 and 64 compared to 50% of natives. Percentage of the Population in Each Age Distribution, 2010, Foreign-Born and Native-Born Sources: America’s Advantage: A Handbook on Immigration and Economic Growth, 2015; Pew Research Center, "Statistical Portrait of the Foreign-Born Population in the United States, 2010.“ Outsized role in labor force
- 18. • STEM: An additional 262 jobs for the native- born are created for every 100 foreign- born STEM workers with advanced degrees from U.S. colleges. • H-2B: For every 100 H-2B visa workers, 464 jobs are created or preserved for American-born workers. • New Jersey: 2,461 H-2B visas supported more than 11,419 American jobs (2011) Outsized role in labor force Source: American Enterprise Institute and the Partnership For A New American Economy, Immigration and American Jobs, 2011
- 19. Source: Pew Research Center, The Next America, 2014 Workers and Social Security
- 20. Immigrants in Massachusetts 17.9% •Share of labor force (nationally 16.6%); 39.2% growth, 2000- 2011 67.5% •Share of immigrants who are of working-age (18-54) (nationally 59.5% aged 25-54) Top 3 occupations by industry: 1.26.5% Educational Services, and Health Care and Social Assistance 2.13.9% Professional, Scientific and Management, and Administrative and Waste Management Services 3.12.1% Manufacturing
- 21. Immigrants in health care Source: The Immigrant Learning Center, Inc., Immigrant Workers in the Massachusetts Health Care Industry, 2008.
- 22. Immigrants more likely than native-born to be self-employed. In 2010, immigrants owned 18% of all small businesses. • Share of pop.: 13.1% • Share of labor force: 15.9% Foreign-Born Percentage Share of Small-Business Owners Compared to Their Share of the U.S. Population, 2010 Source: David Dyssegaard Kallick, Immigrant Small Business Owners: A Significant and Growing Part of the Economy, 2012 Immigrant entrepreneurship
- 23. Immigrant entrepreneurship Source: Partnership for a New American Economy, Open For Business: How Immigrants Are Driving Small Business Creation In The United States, 2012 Immigrants start more than a quarter of businesses in high- growth sectors, including: • Health care and social assistance: 28.7% • Construction: 31.8% • Retail trade: 29.1% • Leisure and hospitality: 23.9%
- 27. • Recent immigrants more likely than natives to have a bachelor’s or advanced degree • College attainment increased by 50%, 2000-11. • With more education, immigrants become a net benefit to government budgets. Educational attainment
- 28. Education in MA English proficiency: • Higher than average (55.1% speak English only or very well vs. 49.9% of foreign-born nationally) Education attainment: • Higher than average (17.5% with a graduate or professional degree vs. 11.6% of foreign-born nationally) • Immigrants hold 51% of doctorates particularly in science and innovation fields • 32.4% Nobel Prize winners from Harvard University were foreign-born
- 29. Education in MA 38.7% Share of STEM graduates at state's most research- intensive schools who are foreign born, 2009 49.1% Share of Engineering PhDs who were temporary or permanent residents, 2006-2010 $1 billion Creating a path to citizenship and expanding the high- skilled visa program would add more than $1 billion to MA Gross State Product in 2014.
- 30. • Economic and social contributions in three categories: • Neighborhood Revitalization: Neighborhood Businesses • Job creation, market expansion: Business Growth • Innovation: Life Sciences and High-Tech Immigrants as Entrepreneurs
- 31. Neighborhood Revitalization Source: Fiscal Policy Institute and the Americas Society/Council of the Americas Bringing Vitality to Main Street: How Immigrant Small Businesses Help Local Economies Grow, 2015. • Metro Los Angeles: 64% main street businesses immigrant-owned • Metro San Jose: 61% • Metro Washington, D.C.: 56% • Metro Miami: 54%
- 32. ROSA AND NISAURY TEJEDA and VICTORIA AMADOR Dominican Republic Owners: Tremendous Maid and Boston Best Commercial Cleaning, Jamaica Plain, MA Came to U.S.: 1994 Neighborhood Business
- 33. Job and Market Growth Source: The Immigrant Learning Center, Inc., Immigrant Entrepreneurs: Creating Jobs and Strengthening the U.S. Economy in Growing Industries, 2013.
- 34. HELENE & THOMAS STOHR Switzerland Founders: swissbakers, Reading & Allston, MA Food Business
- 35. Immigrant as innovators Source: Institute for Immigration Research at George Mason University, “The Nobel Prize: Excellence among Immigrants,” 2013 •25% life science and high-tech companies immigrant-founded •$52 billion revenue and 450,000 workers
- 36. Innovation AMAR SAWHNEY India Owner: Ocular Therapeutic, Bedford, MA Came to U.S.: 1987 NEW PIC NEEDED http://youtu.be/J-vU3FVXsJY?t=2m44s
- 37. • Diverse immigrant population in MA • Cluster at the low and high ends of the education and labor spectrum • Outsized role in labor force that expands economy, creates more jobs for native-born • Higher rate of entrepreneurship • Underserved, niche markets; high-growth industries • Revitalize neighborhoods, create jobs, innovate What have we learned?
- 39. Immigrant Workers: Who They Are and What They Contribute Thank you Download free ILC Public Education Institute reports at www.ilctr.org/promoting-immigrants For all your immigration research and data, go to www.immigrationresearch-info.org Visit the Institute for Immigration Research at GMU: www.iir.gmu.edu
- 40. Growing New American Businesses in MA: Community Actors and State Policy Options 2nd Biennial Forum on Engaging Immigrant Entrepreneurs & Small Business Owners Bunker Hill Community College, November 13, 2015 Jeff Gross New Americans Integration Institute (NAII) MA Immigrant & Refugee Advocacy Coalition
- 41. Massachusetts Immigrant & Refugee Advocacy Coalition (MIRA) Largest organization in New England advocating for the rights and opportunities of immigrants and refugees. Over 130 organizational members—incl. community-based groups, social service organizations, ethnic associations, schools, refugee resettlement agencies, health centers and hospitals, religious institutions, unions, and law firms. Advances its mission through policy analysis, legislative and administrative advocacy, organizing and leadership development, training and technical assistance, and strategic communications.
- 42. New Americans Integration Institute • Combines policy research and advocacy with on-the-ground integration projects and program partnerships, and communications initiatives, with the goal of creating and strengthening economic, linguistic, and civic integration pathways for immigrants and refugees statewide • Built on frameworks defined by 2009 “New Americans Agenda” • Advisory Board include representatives of state and local government agencies and private, nonprofit, and academic sectors • Five current project areas: o Immigrant Entrepreneurship o Immigrant Professional Integration o School Achievement & Access to Higher Education o Access to Early Education and Care o Messaging of Immigrant Contributions
- 43. Immigrant Entrepreneurship: Addressing Institutional Barriers • Undersupply of targeted services/supports • Lack of system-wide coordination • Need for stakeholder and public awareness
- 44. NAII Immigrant Entrepreneurship Agenda • Online Business Resource Center* • Policy-oriented briefs and fact sheets** • Promotion of “Immigrant Entrepreneurship Month” • Collaboration with community and nonprofit partners • Administrative advocacy with state and local stakeholders * http://miracoalition.org/en/integration-institute/entrepreneurship/sub-starting-a-new-business ** http://miracoalition.org/en/integration-institute/entrepreneurship/ent-facts
- 45. Policy Recommendations for Strengthening Immigrant Entrepreneurship • Increase the voice of immigrant entrepreneurs in decision-making • Strengthen and expand community partnerships • Improve statewide oversight and inter- agency collaboration
- 46. MIRA Coalition 105 Chauncy Street Suite 901 Boston, MA 02111 www.miracoalition.org Contact: Jeff Gross jgross@miracoalition.org Tel: 617.350.5480 x228
- 49. ¡Lanza Tu Idea! Contest to pitchContest to pitch your ideasyour ideas “Unleashing the creativity and entrepreneurial spirit in the Hispanic community” First Spanish Pitch Contest in the Nation ! https://www.youtube.com/watch?v=aO1_Y2IRxgs
- 50. EforAll Promo Video: Conexion Latina
- 52. • Monthly meetings • Planned/conducted by entrepreneurs • Increase self-confidence / “soft skills” needed for networking • Increase business activities among entrepreneurs/business owners EncuentrosEncuentros EmpresarialesEmpresariales “ Networking Meetings" (meet-ups)
- 53. • 60 hour training and mentoring sessions • Trainings conducted by experts • Business presentations • Cash prizes • Certificate of Completion Negocios ExitososNegocios Exitosos ““Successful Business“ TrainingSuccessful Business“ Training ProgramProgram
- 55. • Professional support and guidance • Qualified successful mentors • Referrals to valuable resources • Create a professional relationship MentoringMentoring
- 56. Would youWould you like tolike to see it insee it in ACTIONACTION??
- 57. Alberto Calvo President Stop & Compare Supermarkets
- 58. Building Better Businesses Belin Economic Justice Project & East Boston Small Business Incubator
- 59. The Big Picture provide personalized pro bono legal Assistance in transactional matters to Immigrant, low-income, & Minority entrepreneurs and developing small businesses in East Boston, Massachusetts
- 60. The Organization Lawyers’ Committee for Civil Rights and Economic Justice A non-profit, non-partisan organization formed to marshal the resources of the legal community to address racial and national origin discrimination throughout Massachusetts. For over forty years, the Lawyers’ Committee has worked to safeguard the civil, social, and economic rights of our constituencies. We handle impact litigation as well as legal actions on behalf of individuals. We also engage in community economic development, community education, and policy advocacy. Started in September 2001, EJP’s mission is to contribute to the economic growth of low-income communities by helping individuals achieve economic self-sufficiency and develop sustainable businesses. EJP provides business assistance and education to entrepreneurs who are starting or operating community businesses located in underserved areas in Greater Boston and who cannot afford legal counsel. By helping residents of these communities develop sustainable, community-based businesses that create local jobs, EJP aims to stimulate economic growth in communities that need it most. The Belin Economic Justice Project (EJP)
- 61. Community of Impact: Taking a closer Look at East Boston, MA The Numbers Population Figures ALL EB: 40,500+ Non-White: 63% Latino/Hispanic: 53% (Home to more than 20% of Entire Latino Population in Boston) Top 5 Countries of Immigration Mexico, El Salvador, Colombia, Brazil, Italy Spanish Speaking Households: 57% Why East Boston? Location Resident Community & Transportation Hub Growth and Redevelopment Rising Real Estate & Capital Investment Expanding Small Business Presence Growing number of DBA certificates filed by minorities Generational Distinctions Growing confidence among a younger generation of minority and low income entrepreneurs & business owners
- 62. Project Development Model of Small Business Development Theoretical Transactional Sustainability Ideas Concepts Initial Organization Business Plans Insurance Concerns Legal Organization: Entity Formation Employment Issues Contracts, etc. Successful opening and sustainable daily operation of a small business
- 63. Our Clients ManiNuts Minority owned small business which currently distributes and sells their staple product, roasted peanuts with sesame seeds, in over 25 different vendor locations across the metro and suburban Boston areaAngela’s Cafe Minority own Mexican-American restaurant in East Boston. Angela’s Cafe is a landmark restaurant that serves Puebla cuisine with a family touch.
- 64. Project Framework - Office Hours & Limited Representation - Educational Seminar - Clinics & Workshops
- 65. Open Office Hours & Limited Representation Locations ✖East Boston Neighborhood Health Center ✖East Boston Main Streets Offices Support and Education ✖The project will produce a number of written materials and provide clinics and workshops for small business owners Walk Ins Welcomed ✖Onsite Intakes, Question & Answer Limited Representation ✖Basic Transactional Issues ✖Complex Issue Prep for Partnering Firms ✖Local Client Meetings scheduled during office hours
- 66. Contact Information Alexa Marin Equal Justice Works Fellow Office: (617)-988-0604 amarin@lawyerscom.org
- 67. Karleen Porcena Program Officer Boston Local Initiatives Support Corporation (LISC)
- 68. Access to Capital The Forum on Engaging Immigrant Entrepreneurs & Small Business Owners By Alison Moronta, José Luis Rojas, and Rob Williams of the Community Group
- 69. Agenda • Introduction • Sources of Capital & Enhancements • Steps to Financing • Summary - Keys to Accessing Capital • Questions & Answers
- 70. Introduction – Mass Growth Capital Corp. • Quasi-Public Lender • Typically, lending into gap situations where banks will not lend, or turn around situations • Company needs to be profitable for at least 3 months • Solid business plan • Term loans up to 5 years • Lines of Credit • Guarantees on bank debt • Bonding Lines of Credit • Contract Financing
- 71. Overview of Lending Landscape: Big Banks • Examples: • Bank of America, Sovereign, Citibank, TD, Citizens • More rigid • Lend typically in “the box” • Do very little story lending • Very price competitive for a deal they want
- 72. Overview of Lending Landscape : Regional Banks • Examples: • Middlesex, Eastern, Webster, Peoples’ United, Boston Private • Not as rigid as big banks • (Assets are usually in excess of $1 billion) • Tend to stay with customers in difficult circumstances • Still very credit focused • Certain industries may fall out of favor (no lending)
- 73. Overview of Lending Landscape : Community Banks • Examples: • East Boston Savings, Blue Hills, Rockland Trust, Leader, Boston Trade, Cambridge Trust, Metro Credit Union, Brookline Bank • Most flexible • (Assets are usually under $1 billion) • Very relationship driven • Will forgo structure for rate • Will do story credits
- 74. Small Business Administration or SBA • Credit enhancement tool to help bank get a loan done • Still need positive results and cash flow • Acts as a collateral enhancement • Bank still needs to approve the credit
- 75. Other Sources of Capital • Alternative Community Lenders • CDFIs (Community Development Finance Institutions) • Micro-lenders ($50,000 or less) • Examples: ACCION East, Dorchester Bay EDC, SEED • Factoring • Purchase account receivable • Expensive/Quick cash • Vendors • Stretch vendors • Equity (Family, Friends & Fools)
- 76. Disconnect Between Banks and Business Owners • Business owners are optimists and banks are typically pessimists. • Banks look historically; owners are forward looking Owners: “I have never missed a payment” Banks: “Last year’s CF doesn’t support the borrowing” MGCC: “Are you moving in the right direction…profitability!”
- 77. Keys to Accessing Capital • Good operating performance, cash flow and adequate balance sheet • Financial statements and projections • Solid business plan is a must • Personal financial situation • Know your credit score and be able to explain • Be prepared to provide a personal guarantee • Identify where you best fit in the financing arena
- 78. Contact Information: • Alison Moronta, (617) 337-2820 amoronta@massgcc.com • José Luis Rojas, (617) 337-2815 jrojas@massgcc.com • Robert Clark Williams, (617) 337-2823 rwilliams@massgcc.com Massachusetts Growth Capital Corporation 529 Main Street, Charlestown Ma 02129 (617) 523-6262
- 79. Thank You! Questions and Answers
Notas do Editor
- The abstract for this workshop said that having an asset-based perspective of the immigrants you serve whether its in a learning environment or a serving environment will help you better understand these people, know them better and have a better sense of both the talents and drive they bring with them and the fact that your work will enable them to be more productive for everyone’s benefit. We traditionally think of immigrants as being people we need to serve forgetting that they too have tremendous contributions to make. I hope by the end of this session you’ll move from a deficit-based perspective to see immigrants as assets to your communities and your nation as a whole It is hoped that this will help you to reframe the discussion on immigration, inject some thoughtfulness into it and change the narrative to something more positive and more truthful.
- Whether new or old, part of our shared Americanism is our linkages to other parts of the world. That idea was the cornerstone of the founding of The Immigrant Learning Center… Founded in 1992, it began providing free English classes to any adult immigrant or refugee who walked through the door giving them the skills they needed to become successful parents, community members and workers. We’ve served about 9,000 to date. After 9/11, however, our students were afraid to come to class, even to leave their homes, because people would yell hateful things at them, such as “Immigrants are terrorists” and “Go back to where you came from.” It was then we realized that Americans, too, needed to learn about the positive contributions of immigrants, so The ILC Public Education Institute was launched.
- In addition to commissioned research, The ILC Public Education Institute has also published a book, “Immigrant Stories, Immigrant Gifts.” We have an online Immigrant Entrepreneur Hall of Fame, an immigrant entrepreneur video interview series, an online research database featuring the spectrum of contemporary U.S. immigration research at www.immigrationresearch-info.org, and throughout the year we do free online workshops for various audiences; they’re like intensive, interactive webinars for immigrant-serving organizations, community colleges and K-12 and adult basic educators. In 2012, we launched the Institute for Immigration Research at George Mason University near our nation’s capital which now conducts our research on a national level.
- Historically, Massachusetts has attracted large numbers of immigrants, starting in 1900 when three-fourths of Boston’s population comprised immigrants and their children. Today, the foreign born population comprises one-seventh of the population in Massachusetts but has grown at a rate of more than 35 percent over the last decade. More than half are naturalized citizens, which is higher than the national average, and has significant implications for personal and professional integration and growth.
- The foreign born population in Massachusetts is more diverse than in many parts of the country, and immigrants’ top three countries of birth, China, Brazil and Portugal, all account for roughly the same percentage of the foreign-born population. This feature is actually a unique to Massachusetts. They are followed by Dominican Republic, India, Haiti, Vietnam, Canada, El Salvador, Guatemala, Cape Verde and Russia.
- Key findings from the ILC-commissioned report MA Immigrants By the Numbers, which is available free on our website, show the cities of Chelsea, Malden and Lawrence have the highest concentrations of immigrants, who are also likely to be concentrated in opposite ends of the education and skill spectrums and this is something we’ll talk more about when we look at labor. Of note, immigrants have a high propensity to pay taxes: 16.7% of state income tax filers though their share of population is 14%. They heavily into systems that, unless they become citizens, would not benefit them.
- And speaking of paying heavily, one of the myths about immigration is this idea that immigrants don’t work. Most immigrants come to the U.S. in their prime working age – they come with the intention to work, to make better lives for themselves and their children than they could in their native countries. Note the belly in the working-age category in this chart. Immigrants make up an outsized share of the labor force compared to their share of population, 13%.
- In so doing, immigrants are helping to create more jobs by growing the economy. Native-born workers and immigrant workers tend to possess different skills that complement one another. For those in the STEM (Science Technology Engineering and Math) fields and even agricultural workers, more jobs are created for native-born workers downstream and in new, satellite businesses. You can see this especially in high-growth industries like food and transport. Immigrants’ purchasing power help expand local economies. And finally, immigrants are more likely to start a business, which of course creates jobs.
- And this is something America needs. As it is, the status quo is unsustainable. 10,000 Baby Boomers are going on Social Security and Medicare every day between now and 2030. Today&apos;s youth are paying taxes to support a level of benefits for today&apos;s seniors that they have no realistic chance of receiving when they become old. Immigrants are paying heavily into safety nets like Social Security where they may never actually reap the benefits. So working-age immigrants are needed to help replenish the workforce and to offset the growing “dependency ratio” of supporting the non-working population. Look at this: in 1950 there were 16 workers for every person in retirement. In 2010: there were three. Looking forward, by 2030, nearly one in five U.S. workers will be foreign-born.
- In Massachusetts, about 18% of the labor force is made up of immigrants, which is larger than the national immigrant average and larger than their share of the state’s population. That works out to 71.7% percent of the state’s immigrants participating in the labor force vs. 67.5 percent of the native-born, a significant proportion of the latter being near retirement. This is because there are more immigrants in the working age group than native-born Americans. You can see the top three industries for immigrant workers: (read them out)
- And we spoke just now about Baby Boomers…who’s going to take care of them? Immigrants fill critical job vacancies at both high and low ends of the healthcare spectrum. We found this in our research here in Massachusetts where immigrants make up about 14% of the population and yet are 51% of medical scientists. In Michigan, 29% of physicians graduated from a foreign medical school. In Missouri, it’s nearly 20%.
- So voluntary immigrants come to the U.S. with intentionality. The strong desire to create a better life, the act of migrating is, itself, entrepreneurial. Immigrants own 18% of small businesses, a disproportionate figure compared to their share of population. And what are the job creators in this country: small businesses. Over the last 15 years, even during the recession, immigrants increased the rate by which they started businesses by more than 50 percent, while the native-born have seen their business generation rate decline by 10 percent. Immigrants are now more than twice as likely to start a business. This has been a trend throughout U.S. history. Some of America’s most iconic brands were founded by immigrants. Think of Budweiser, Levi’s, Kraft, AT&T, TJMaxx, Kohl’s, Big Lots, Google, Yahoo, eBay… the list goes on.
- Immigrants started 28% of all new U.S. businesses in 2011, despite accounting for just 12.9% of the U.S. population Over the last 15 years, immigrants have increased the rate by which they start businesses by more than 50 percent, while the native-born have seen their business generation rate decline by 10 percent Immigrants are now more than twice as likely to start a business as the native-born Immigrants start more than 25% of all businesses in seven of the eight sectors of the economy that are expected to grow the fastest over the next decade, including: health care, retail and leisure and hospitality.
- This has been a trend throughout U.S. history. Some of the most recognizable brands, indeed some of America’s most iconic brands, were founded by immigrants. Think of Budweiser, Levi’s, Kraft, AT&T, TJMaxx, Kohl’s, Big Lots, Google, Yahoo, eBay… the list goes on.
- In 2010, almost 18% of business owners in Massachusetts were immigrants, despite making up 15% of the population. From 2006 to 2010, immigrant-owned businesses generated $2.8B in annual income for the state. Immigrants or their children founded five of the state’s 11 Fortune 500 companies: Staples, TJX, Thermo Fisher Scientific, Boston Scientific, and Biogen. Together these companies employ more than 280,000 people and generate almost $73 billion in revenue per year.
- More businesses means more jobs. I mentioned that Immigrants start more than a quarter of all businesses in seven of the eight fastest-growing sectors of the economy. Our own research has shown a high rate of immigrant entrepreneurship in leisure and hospitality, the state’s fourth-largest employer. Immigrants here founded more than one-third of leisure and hospitality businesses.
- It takes more than courage to start a business, innovate or become skilled. What does the data show? That more immigrants than native-born have advanced degrees, especially PhDs. More than 40% of the STEM PhDs awarded in 2011 went to foreign students. They make up 47% of science and engineering workers who have PhDs. Today’s immigrants are the most highly educated… Overall, 41% of immigrants arriving here in the past five years had completed at least a bachelor’s degree. By comparison, only 20% of newly arrived immigrants in 1970 were similarly educated.
- More immigrants than native-born have advanced degrees, especially PhDs. More than 40% of the STEM PhDs awarded in 2011 went to foreign students. They make up 47% of science and engineering workers who have PhDs. In South Carolina, a state that has seen a dramatic increase in its immigrant population, there has been a concomitant increase in the college-degree attainment among immigrants: 87.8% in the past decade. This rise in college-degree attainment among immigrants is a trend all around and it has tremendous implications for not just the immigrant but also his adopted homeland. The U.S. stands to gain as immigrants pay more in taxes than they receive in benefits. And it speaks to immigrants’ desire for upward mobility, the belief that hard work can improve not only their station in life but also the quality of life and opportunities for their children to do better than they did. This is a real American value.
- The Massachusetts Institute of Technology (MIT) filed 168 patents in 2011, making it the third highest patent producing university behind the University of California System and Stanford. More than two out of every three patents at MIT had at least one foreign inventor. Beyond the potential for progress and job creation, patents provide significant income for universities; in 2010 MIT collected $69.2 million in revenue from its patents. After graduation, foreign born alumni of MIT have founded 2,340 US-based companies, which together employ more than 100,000 people.
- We focused a lot on immigrant entrepreneurship earlier because it’s the most foolproof way of demonstrating that immigrants are assets. The contributions of immigrant entrepreneurs can be placed in three categories. Neighborhood revitalization through neighborhood businesses: what you find on main street. Job creation and market expansion: businesses of any kind that are firmly focused on fast growth and hiring more workers. And innovation through science and technology entrepreneurs. It’s a simple way of categorizing them.
- So when we talk about immigrant entrepreneurs revitalizing neighborhoods and main streets, we are showing that whereas immigrants often first move into blighted neighborhoods because rents are cheap, they open up businesses like grocery stores, restaurants, nail salons and others that provide services like cleaning or taxi services and, in so doing, make the area cleaner, safer, more attractive to customers, and more livable. These things don’t happen overnight but the proof is everywhere: look at the North End or Fields Corner. One recent report found that, between 2000 and 2013, Main Street immigrant business owners were responsible for all net growth in Main Street business.
- Immigrant entrepreneurs often have a strong desire to grow, hire more workers, expand. They tend to be concentrated in fast-growing industries. In fact, immigrants start more than one-fifth of all businesses in seven of the eight sectors of the economy that are expected to grow the fastest over the next decade, including: health care and leisure and hospitality. Immigrants strengthen local economies by providing jobs, expanding their businesses and increasing the skill sets of their employees. Our own research has found that immigrants play an outsized role as entrepreneurs and workers in industries such as transportation, food and building services. Although accounting for just 14 percent of the Massachusetts population, they account for 21 percent of entrepreneurs in warehousing and storage, 36.1% in restaurants and 39.2% in waste management.
- Immigrants comprised about one-fifth of the high tech-workforce and high-tech entrepreneurs and just as in small business entrepreneurship during the recession, the number of immigrant entrepreneurs in high-tech industries increased by 64% from in the past decade, compared with 22.6% for U.S.-born. What do many immigrants to with the education they receive in America? They innovate. Three-quarters of patents awarded to top 10 patent-producing universities had at least one foreign-born inventor (2011) Data from our research institute at George Mason University has shown that immigrants make up an outsized share of Nobel Prize winners: 32% from Harvard and 28% from MIT. We’ll hear from an MIT graduate in a minute who is also an immigrant entrepreneur, Alberto Calvo.
- Meet Amar Sawhney, a serial entrepreneur in the life sciences. He came to this country to do a master’s and then a PhD in chemical engineering at UT Austin. Today, he’s doing pioneering work in glaucoma treatment, surgical wound management and non-invasive drug delivery. He holds 120 patents and has founded six companies that account for more than 1,600 jobs. How did that happen in a place so far away and different from his native country, India? What was it about America that allowed him to succeed and develop innovations for universal benefit? In his own words……..000
- Since 1985, serving all immigrants and refugees and trying to represent the voices of the state’s very large and diverse immigrant community – one out of six residents and one of almost every 5 workers
- Integration – including education and economic development -- has become key focus of MIRA’s work. The Institute founded in 2011 with funding from The Boston Foundation to build on the policy recommendations of the New Americans Agenda, in areas where MIRA was positioned to make an impact Approach builds on and expands traditional policy agenda and advocacy/community-organizing frameworks of MIRA Coalition
- As a a statewide organization made up of local parnters, we have been looking at issues both at the system and the community level, and how they inter-connect While there are many small business services, mainstream small business services not always adequately targeted to the issues facing immigrant communities – lack of language support, lack of knowledge of imm ent issues, even timing of bank hours. We know this is at least in part a matter of funding and capacity. Even where targeted services exist, and there are many, multiple studies and experience document a lack of awareness of this on part of immigrant business owners. Part may be due to issues on language and educational barriers on the owners side, but also because services themselves are often siloed. There is not always clear coordination and information sharing between business, community, local and state government partners that maximize use of existing scarce resources, better align and target services, and help bring immigrant business themselves into the planning and needs assessment Finally this raises the broader issue of is why we need increased stakeholder and public awareness of both the presence of immigrant business owners, the barriers they face and the opportunities they bring – which will not only help increases coordination and resources but also builds trust among immigrant business owners, and create a more welcoming attitude
- MIRA is not a technical assistance provider, or an academic institution, or a grass-roots organization. Agenda consistent with MIRA’s coalition role Online Business Resource Center connecting immigrant entrepreneurs with business information, technical assistance resources, and banks and financial services providers that invest in new and growth businesses Policy-oriented briefs and fact sheets, including input to national policy platforms of NPNA and White House Celebration of “Immigrant Entrepreneurship Month”. Since 2011, part of the announcement of the institute, and promotion around it Outreach to statewide and community partners regarding accessing technical assistance, financing, and other business development resources. E.g. work with MCBC, collaboration with MAPC, English for New Bostonians, Tech Goes Home Take advantage of MIRA’s position. Administrative advocacy within state economic development & other agencies on the needs/barriers of immigrant entrepreneurs – incl Office of Small Business and Entrepreneurship and Small Business Development. Look forward to working with the Assistant Secretary and Office of Access and Opportunity (OAO)
- Recommendations both broad and narrow, and are directed at state and local government as well as nonprofit and community stakeholders Increase the voice of immigrant entrepreneurs in decision-making at the state and local levels With all that’s going on, ensure that efforts to identify and streamline regulations with small business impact, as well as to coordinate and communicate available business development resources, include input from immigrant business owners and immigrant-serving groups This can be through through public/private advisory bodies and other means, including engaging with CBOs, main street groups, local government economic development stakeholders Strengthen and expand community partnerships to better meet immigrant business needs Tap into local community-based groups, private sector entities and chambers of commerce that can provide multilingual technical assistance, mentoring and support in business planning, credit building, marketing, accounting, etc. State also can play a Improve statewide oversight and inter-agency collaboration regarding programs serving foreign-born communities Strengthen and centralize coordination of policies and programs across government promoting immigrant integration – incl. possibly expanded role for ORI or an inter-agency task force. We look forward to working with Undersecretary Pham here. Establish metrics for the Massachusetts Growth Capital Corporation’s (MGCC) programs—e.g., technical assistance grants to CBOs, the “Tools to Grow” program of small business assistance, and Small Business Mentoring RFP—to better track outreach to immigrant businesses, incl. linguistic and cultural awareness.
- Location Primarily serves the residential and economic needs of low income minorities and immigrants, while tailoring to the transportation needs of surrounding communities due to its proximity to Logan Airport and Interstate 90. Growth and Redevelopment Large flood in investment capital and growing eagerness of young professionals to live in East boston. Over 5 major redevelopment structures taking place right now. While there is a very real threat of local displacement a way to combat may be by aiding business owners in developing better business models and providing them with more legal resources so they can succeed financially and position themselves as a staple among new locals. Expanding Small Business Presence Generational Distinctions
- ManiNuts: Based in Worcester, Massachusetts, Diana and Angelica Cardona are the sister duo behind the local favorite, ManiNuts, which currently distributes and sells their staple product, roasted peanuts with sesame seeds, in over 25 different vendor locations across the metro and suburban Boston area. The sisters participated in the “Create Your Own Job” seminar in the Spring of 2015, and received further pro bono counseling soon after. Both agree that the time spent attending the seminar workshops were extremely beneficial in moving their venture forward by providing them with the essential educational tools they needed to start their own business. Since their time in the seminar, ManiNuts has found great success and is currently working to expand their distribution beyond the Boston area, while looking for a permanent location to house their ever growing small business. Angela’s Cafe: Jose Garcia, a Mexican-American immigrant, is the founder of Angela’s Cafe in East Boston. Angela’s Cafe is a landmark restaurant that serves Puebla cuisine with a family touch. After being featured on Guy Fieri’s Diners, DriveIns, and Dives, people who have a layover in Boston and who want to experience home-made Puebla cuisine make sure to stop by. Jose participated in the Create Your Own Job Seminar in partnership with Latham & Watkins. He enrolled in the seminar to learn more about expanding his business into catering