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Reconsidering Immigrant Entrepreneurship —
What Explains the Myth of Immigrant Entrepreneurship? If immigrants are not more entrepreneurial than natives, then why does the stereotype continue to exist? It is certainly common for public perceptions to be incorrect about economic and demographic facts. For example, a number of surveys show that the public believes that teenage mothers comprise the majority of the people on welfare, when in fact, administrative and other data clearly show that this is not the case. Another example of mistaken public perceptions is that most Americans, including minorities, grossly overestimate the percentage African-Americans represent in the U.S. population. We should therefore not be surprised that the perception of immigrants as highly entrepreneurial also turns out to be incorrect. Only with a large scientifically collected survey like the CPS or a national census is it possible to get an accurate economic or demographic picture of the nation. While mistaken impressions may be common, this phenomenon does not explain why the particular impression of immigrants as highly entrepreneurial exists in the first place. Three factors probably account for the stereotype: First, the fact that immigrants were once much more likely to be self-employed than natives may explain why the perception of immigrants as highly entrepreneurial exists (see Figure 1). Many observers may simply be ascribing the traits of past immigrants to today's immigrants. Second, high rates of entrepreneurship among some immigrant groups, such as Koreans and people from the Middle East, may be falsely attributed to all immigrants. Third, policy makers, the public, and even reporters are probably more likely to come into contact with immigrant entrepreneurs than with immigrant workers. For example, the immigrant restaurant owner who greets customers is much more likely to be remembered than are the immigrant cooks and dishwashers whom the patron never sees. Most Americans have much more personal contact in their daily lives with self-employed immigrant street vendors and cab drivers than with immigrant farm or construction laborers. Because most people make generalizations based on their own experience, it is not surprising that immigrants are seen as particularly entrepreneurial. These three factors taken together probably explain, to a large extent, why immigrants are seen as highly entrepreneurial.
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