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IWS Documented News Service

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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

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Small Business Administration (SBA)

Office of Advocacy

 

Immigrant Entrepreneurs and Small Business Owners, and their Access to Financial Capital [3 May 2012]

http://www.sba.gov/sites/default/files/rs396tot.pdf

[full-text, 51 pages]

 

Research Summary

http://www.sba.gov/sites/default/files/rs396.pdf

 

 

The importance of immigrant entrepreneurs to the U.S. economy has been very well documented in Advocacy studies and elsewhere in the economic literature. They contribute greatly to the economy, have high business formation rates, and create successful businesses that hire employees and export goods and services. Lacking, however, was a thorough look at the financial picture that would complement what we know of them. This study, using data from the 2007 U.S. Survey of Business Owners, attempts to complete the picture on immigrant entrepreneurship and addresses questions such as the following: What hurdles do they face accessing capital? How do they use capital?

 

Table of Contents

Executive Summary ………………………………………………….…………………. ii

1. Introduction ……………………………………………………….………………….. 1

2. The State of Immigrant Business Ownership in the United States ….………………... 4

New Estimates of Immigrant Business Performance ………………….……………..…. 8

Exports ………………………………………………………………….…………..…. 12

3. Financial Capital …………………………………………………….……………... 14

Previous Research on Capital and Business Performance ………………………………14

Capital Use among Immigrant-owned Businesses …………………………………….. 16

Industry Composition ………………………………………………………………….. 18

Types of Financing ………………………………………………………………….…. 21

4. Home Ownership and Entrepreneurship ……………………………………………. 23

Recent Trends and the Great Recession ……………………………………………..… 31

5. Conclusions …………………………………………………………………………. 37

References ……………………………………………………………………………... 41

Data Appendix …………………………………………………………………………. 45

 

 

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