Immigrants twice as likely to start a business as native-born Americans

Immigrants being sworn in as citizens of the United States -  new study shows that immigrants are twice as likely to set up their own businesses

A new report shows that immigrants are nearly twice as likely to start businesses as native born Americans.

As lawmakers in Washington D.C. try to formulate a new plan for immigration reform, the report by the Kaufman Foundation showed that each month, foreign workers are more likely to start businesses than U.S. born citizens.

The study measured the rate of individuals creating businesses each month as a percentage of adult, non-business owners at the start of each month.

Despite this latest data, a study by the foundation last showed the number of high-tech, immigrant-founded startups has stagnated and is on the verge of decline.

"For several years, anecdotal evidence has suggested that an unwelcoming immigration system and environment in the U.S. has created a 'reverse brain drain.' This report confirms it with data," said Dane Stangler, director of Research and Policy at the Kauffman Foundation. "To maintain a dynamic economy, the U.S. needs to embrace immigrant entrepreneurs."

The highest percentage of immigrant-founded firms are mostly in traditional immigration gateway states such as California (31 percent), Massachusetts (9 percent), Texas (6 percent), Florida (6 percent), New York (5 percent) and New Jersey (5 percent).

The Kauffman Index of Entrepreneurial Activity
is the leading indicator of new business creation in the U.S.

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