Partnership for a New American Economy: Hispanic Entrepreneurs on the Rise
American industries including manufacturing, dairy, poultry and agriculture depend on immigrant workers, but a growth in immigrant-owned businesses also benefits the federal economy.
Immigrants or their children founded 40 percent of fortune 500 companies and are more likely to start businesses that support their local economy, said John Engler, president of Business Roundtable, a Washington D.C.-based organization comprised of U.S. business leaders with focus on public policy.
Despite a stalemate in Congress on an immigration bill, and legislators saying there will be no progress by the end of the year, a rally to push for reform took place nationwide Wednesday, including an event hosted by the U.S. Chamber of Commerce in Washington, D.C.
Engler was one of the representatives at the event, which also included members of the manufacturing industry, agricultural industry, and organizations interested in the economic benefits of immigration reform.
In 2011, immigrant owned businesses generated more than $775 billion in revenue for the U.S. economy, and comprised about 28 percent of new businesses founded that year, according to the Partnership for a New American Economy, a group of more than 500 mayors and business leaders co-founded by notable names like Michael Bloomberg, Rupert Murdoch and Bill Marriott.
The organization also released statistics that highlight the financial impact of immigrants.
While some states like Arkansas and Utah see annual revenues in the range of hundreds of millions of dollars from immigrant owned businesses, others like Arizona and North Carolina totaled a couple billion annually.
One of the largest populations pursuing entrepreneurial endeavors is Hispanics.
Between 1990 and 2012, the number of Hispanic immigrant entrepreneurs more than quadrupled, going from 321,000 to 1.4 million, according to a report by the Partnership and the Latino Donor Collaborative. This increase was in stark contrast to the decrease of entrepreneurs nationwide, which dropped by 250,000, to 10 percent, in 2012.
But the biggest dilemma facing the U.S. job market is the numerous available jobs, paired with the class of unemployed and young American citizens who do not want to work in those industries or are not qualified, said Thomas Donahue, President and CEO of the U.S. Chamber of Commerce.
"Young people aren't going to wake up and milk cows seven days a week," Engler said.
"We rely on people to plant and harvest the nutritious and domestic supply of food for Americans and for export. Many of these workers are unauthorized, but are willing and able to do the work. It's been demonstrated many times that Americans won't work in the fields, so why won't our elected officials provide us the means to have a legal, reliable workforce?" said Tom Nassif, President and CEO of Western Growers.
Especially since those who want to join the workforce take huge personal risks.
Nassif said there were those who "were willing to risk personal injuries as well as separation from their families and country, with the hope of supporting their loved ones who came here illegally. And that, for them, was a heavy price to pay. What would it take for us [Americans] to separate ourselves from our spouses and children? Only desperation."
Despite the stalemate in Congress over the issue, it did not curb the enthusiasm of those gathered in D.C. to push for reform.
"Politics of immigration reform seem to be in flux on a daily basis but the underlying economic reason for strengthening immigration remains," Engler said.
Another industry that can be impacted by loosening of immigration laws is the manufacturing industry -- because of the effects of technology as well as direct foreign investments.
About 45 percent of jobs in the manufacturing industry have been lost over the past decade by changes in productivity, robotics, process engineering, and supply and chain management, Donahue said.
But high-skilled immigrant workers as well as foreign companies -- such as European manufacturers that supply products for the renewable energy markets -- are being barred from thriving in the U.S., which would directly benefit the economy, said Jay Timmons, President and CEO of the National Association of Manufacturers.
Donahue said that there is no dispute over fact that the current immigration system is broken, but the debate is over how to fix it.
Reform is the key to reassert the competitiveness of the U.S. and will help build a 21st century workforce in a global economy.
"We need to welcome global talent to our shores as we have from the very first day of this country," Donahue said.
Events took place Wednesday in support of immigration reform in 25 states including Arkansas, California, Indiana, Illinois, Louisiana, Minnesota, Ohio, Oklahoma, South Carolina, Texas, Utah, Virginia, Washington and Wisconsin.
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