Entrepreneurship can be a very tough nut to crack. And if you’re an immigrant entrepreneur in America looking to start a business in the land of the free, be prepared for a rollercoaster ride. New American Economy’s data from 2019 before the pandemic showed that around 3.2 million entrepreneurs, or one in every five, were immigrant owners of small businesses in America.
While this figure shows that immigrants are an integral part of small businesses in America, how easy does it come for immigrants to startup? For one, financing can be a challenge. That’s why companies like Camino Financial exist and are giving much-needed support. In this article, you’ll find out some truths immigrants face when starting a business in the United States.
What Are The Challenges Immigrants Face When Starting Up A Business In America?
As an immigrant entrepreneur, starting a business can be stressful, and the challenges you face are nerve-wracking. While some natural-born American citizens might think immigrants literally walk in to “steal their jobs,” here are some challenges they have to get past:
Language Barriers
The language barrier is arguably the first challenge non-English speaking immigrant entrepreneurs face. It greatly affects their ability to communicate effectively with people around them. Language barriers can leave the immigrant entrepreneur on the bad end of some deals and decision-making due to their inability to communicate.
Discrimination And Prejudices
Lots of immigrant entrepreneurs not only face discrimination and prejudices in their personal life, but they also do in their business life. Discrimination against ethnic minorities and members of religious groups in business is heightened by the news, social media, and reinforced stereotypes.
Lack Of Trust
Most Americans don’t trust immigrants, and this is true for other western countries as well. The first thing that comes to mind is suspicion and the false idea they would rather not trust the foreigner with their money. Whether in patronizing them or investing in their dreams.
Lack Of Networking
Networking with people, especially those you were opportune to go to university with, is one of the perks of studying abroad. University connections can help you in different ways, but that’s tough luck for some immigrants who don’t or didn’t school here.
Understanding The Local Market
Another truth immigrants face when they want to start a business in America is getting past not understanding the local market and how it works. This could take a while getting used to for an immigrant entrepreneur.
Lack Of Proper Financing
Immigrants without taxation history and social security numbers will find starting up a business in America nearly impossible. Although there are quite a few ways immigrants can get much-needed funding when they want to start a business in the USA, things could be better. Companies like Camino Financial are making things seamless.
Facts About Immigrants And Entrepreneurship You Should Know
From Google co-founder Sergey Brin to Tesla and SpaceX’s Elon Musk, America has always been a place for immigrants to let their dreams fly. But most natural-born Americans might not know or understand just how important a role immigrant entrepreneurs play in the American economy. Here are a few to help you understand:
- Immigrants are great at starting and building small businesses in America. They account for at least 18% of every small business owner in the country. This is crazy considering immigrants represent only 13% of the United States’ overall population. In New York alone, 90% of both laundry services and taxi services are owned and run by immigrants.
- Businesses owned by immigrants in the US aided the country’s international trade. A survey of businesses in 2007 showed that immigrant-owned businesses were very likely to export. Besides, when they compared all the businesses that export, immigrant-owned businesses exported more than the lot.
- If you look at some of the most important companies in the world, you will find a key pattern. Immigrants. According to a 2010 Fortune 500 list, immigrants and children of immigrants were responsible for 41% of these companies. Either they were a key founder or co-founder.
Conclusion
Business startups, no matter how great or small, are a pivotal part of the American economy. The journey towards starting a new and flourishing business anywhere in the world, including America, is riddled with both deterrent and rewarding challenges like financing, but small business financing companies are making the story better for immigrant entrepreneurs.
