A World of Opportunity: Understanding & Tapping the Economic Potential of Immigrant Entrepreneurs Immigrant Contributions to New York’s Economy Upwardly Global Panel Discussion April 22, 2009 Presentation by Tara Colton Deputy Director Center for an Urban Future

A World of Opportunity February 2007 report from the Center for an Urban Future which documents that immigrant entrepreneurs are starting a greater share of new businesses than native-born residents, stimulating growth in sectors from food manufacturing to health care, creating loads of new jobs and transforming once-sleepy neighborhoods into thriving commercial centers.

February 2007 report from the Center

for an Urban Future which documents

that immigrant entrepreneurs are

starting a greater share of new

businesses than native-born residents,

stimulating growth in sectors from food

manufacturing to health care, creating

loads of new jobs and transforming

once-sleepy neighborhoods into thriving

commercial centers.

Major findings Immigrants drove all of the growth in the city’s self-employed population between 1990 and 2000: the number of foreign-born individuals who were self-employed increased by 53% while the number of native-born people who were self-employed decreased by 7% In 2000, foreign-born individuals comprised 36% of NYC’s population, yet they accounted for nearly half (49%) of all self-employed workers in the city.

Immigrants drove all of the growth in the city’s self-employed population between 1990 and 2000: the number of foreign-born individuals who were self-employed increased by 53% while the number of native-born people who were self-employed decreased by 7%

In 2000, foreign-born individuals comprised 36% of NYC’s population, yet they accounted for nearly half (49%) of all self-employed workers in the city.

Major findings Citywide, 9.27% of foreign-born workers are self-employed, compared to 7.71% of native-born workers. In Queens and the Bronx, self-employment rates for foreign-born individuals in the workforce are nearly twice those of native-born workers—9.98% to 5.74% in Queens, and 7.31% to 3.98% in the Bronx. “ These entrepreneurs are the future of New York. These people are taking risks, putting their savings on the line, and growing businesses.”

Citywide, 9.27% of foreign-born workers are self-employed, compared to 7.71% of native-born workers.

In Queens and the Bronx, self-employment rates for foreign-born individuals in the workforce are nearly twice those of native-born workers—9.98% to 5.74% in Queens, and 7.31% to 3.98% in the Bronx.

“ These entrepreneurs are

the future of New York.

These people are taking

risks, putting their

savings on the line, and

growing businesses.”

NYC neighborhoods transformed by immigrant entrepreneurs

NYC neighborhoods transformed by immigrant entrepreneurs

Industries in NYC with large numbers of immigrant-owned businesses Food manufacturing Child care Transportation Jewelry industry Import and wholesale sector Garment industry Ethnic press Wedding services Professional services Travel agencies

Food manufacturing

Child care

Transportation

Jewelry industry

Import and wholesale sector

Garment industry

Ethnic press

Wedding services

Professional services

Travel agencies

Challenges Immigrants face formidable challenges as they attempt to start and grow businesses Language and cultural barriers Lack of awareness about local regulations Limited financial literacy and, often, no credit history High costs of doing business in NYC (real estate, health care, energy, insurance, ticketing) Immigrant entrepreneurs remain largely disconnected from cities’ local economic development planning. Immigrants often don’t know about or trust the established nonprofits that support entrepreneurs and small business owners, and few of the groups have made genuine efforts to reach out to immigrant entrepreneurs. Without this help, many immigrant business owners take bad advice and make costly mistakes.

Immigrants face formidable challenges as they attempt to start and grow businesses

Language and cultural barriers

Lack of awareness about local regulations

Limited financial literacy and, often, no credit history

High costs of doing business in NYC (real estate, health care, energy, insurance, ticketing)

Immigrant entrepreneurs remain largely disconnected from cities’ local economic development planning.

Immigrants often don’t know about or trust the established nonprofits that support entrepreneurs and small business owners, and few of the groups have made genuine efforts to reach out to immigrant entrepreneurs.

Without this help, many immigrant business owners take bad advice and make costly mistakes.

Recommendations Government Integrate immigrant entrepreneurs into cities’ economic development strategies Develop new framework for providing business services to immigrant communities and partner with local organizations that have credibility Initiate programs to help immigrant-run businesses export their products beyond their own community Create marketing campaigns to promote major ethnic business districts Rein in overzealous regulatory enforcement efforts Banks and Foundations Support efforts to get more immigrants into the banking system Refer rejected business loan applicants to microlenders Assist microfinance groups with capacity-building efforts

Government

Integrate immigrant entrepreneurs into cities’ economic development strategies

Develop new framework for providing business services to immigrant communities and partner with local organizations that have credibility

Initiate programs to help immigrant-run businesses export their products beyond their own community

Create marketing campaigns to promote major ethnic business districts

Rein in overzealous regulatory enforcement efforts

Banks and Foundations

Support efforts to get more immigrants into the banking system

Refer rejected business loan applicants to microlenders

Assist microfinance groups with capacity-building efforts

Contact information Tara Colton Deputy Director Center for an Urban Future (212) 479-3341 [email_address] The full “A World of Opportunity” report and all of our research on immigrants and New York City’s economy is available at www.nycfuture.org

Tara Colton

Deputy Director

Center for an Urban Future

(212) 479-3341

[email_address]

The full “A World of Opportunity” report and all of our research on immigrants and New York City’s economy is available at www.nycfuture.org