The Blog

Is franchising good for immigrants?

According to the National Immigration Forum, immigrant-owned businesses in the United States employ more than 19 million people; According to Inc magazine, immigrant-owned businesses generate more than $775 billion in annual revenue.
A statistical analysis based on American Community Survey and the Survey of Small Business Owners has found that immigrants account for approximately 28 percent of small business owners in the U.S., and they are two times more likely to become entrepreneurs than native-born businessmen.
Immigrant entrepreneurs create about a quarter of new businesses in the United States, with the numbers varying widely by location, according to a National Bureau of Economic Research working paper.
Immigrants account for more than 40 percent of new businesses in California, New York and New Jersey and fewer than 5 percent in Idaho, North Dakota and some other places, according to Wellesley’s Sari Pekkala Kerr and Harvard Business School’s William R. Kerr, who analyzed U.S. Census Bureau data on firm ownership and the jobs those businesses generate.
While franchising is a good option for local born entrepreneurs it makes much more sense for recently immigrants or foreigners planning to immigrate; a franchise provides a model to start a new business, a franchise provides a recognized brand, well established operation procedures and the benefit of not starting from scratch.