Immigrant-Owned Firms

According to Census data, approximately one out of every five employer small businesses is owned by somebody who was not born in the United States. Small Business Credit Survey (SBCS) data show that firms owned by an immigrant tend to operate in urban areas and tend to be smaller, younger firms. Compared to firms with no immigrant ownership, immigrant-owned firms are less likely to be fully approved on their funding applications and are less likely to report that they are operating profitably.

Along with data on immigrant business ownership, the SBCS collects other demographic characteristics of businesses’ owners, such as their age. Analyzing owner demographics in conjunction with firm demographics like industry provides a richer understanding of small business conditions.