By Morris Beschloss
Although it’s already a well-known fact that America’s independent small business sector generates more expansion than the rest of the world nations combined, little has been indicated about the intensifying role played by the nation’s immigration surge, and the Hispanic population sector’s contribution, in particular.
According to Kansas City, MO-based Kauffman Foundation “Immigration entrepreneurs launched 28% of new businesses in 2014, up from 25.9% a year earlier, compared to 13.3% in 1996.” This non-profit advisory firm’s researchers found that immigrants started new companies, or became self-employed, at nearly twice the rate of native-born Americans. This created an average of 520 businesses a month per 100,000 people last year. Interestingly, immigrants accounted for 12.9% of the U.S. population as late as 2012, the most recent data available. This is up from 9.3% in 1996, according to the U.S. Census Bureau.
The share of new Latino business owners also climbed to 22.1% in 2014, from 10.4% in 2013, and just 10% in 1996, according to Kauffman. Latinos comprised 17.1% of the U.S. population in 2013, according to the most recent statistics, up from 10.6% in 1996. A major reason cited in this increase in startups by Latinos, many of whom are recent, or second generation Americans, is their ability to start what’s colloquially known as “mom and pop shops,” prominent in the retail service sector.
According to employment analysts, thousands of these small businesses have added to America’s post-recession employment totals. This has been a major factor in the disproportionate employment growth, as opposed to salaried positions in established corporations, which have represented limited employment opportunities. This is due to the imposition of cost-saving “breakthrough” technology and the increasing regulatory restraint of federal government agencies.
In 31 of the 50 largest U.S. metro areas, immigrants accounted for all of the growth in owners of basic businesses, such as restaurants, retailers, dry-cleaning services, and beauty salons from 2010 to 2013, according to analyses released from the U.S. Census Bureau. According to interpretive commentaries on this phenomenon, “many immigrants are quick to identify products or services that could benefit their local communities, in which common backgrounds, language, and understanding of these communities’ fulfill unique requirements.” It gives these recent immigrants the opportunity to “fill the gap” more adequately than the larger, more established corporations.
Source: The Desert Sun
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About the Author: Morris R. Beschloss is a global economic analyst, award-winning long-term top business executive, and avid blogger for all aspects of worldwide financial, geo-political, and economic happenings.