Casual observers of the State of the Union Address may have noticed an unfamiliar face in the First Lady's box: Mike Krieger, an immigrant entrepreneur who co-founded Instagram, the fastest growing social mobile startup in the U.S. today. 

Immigrant entrepreneurs create jobs and strengthen the economy, and the United States should tailor immigration laws and policies to encourage the best and the brightest to create businesses on U.S. soil, according to a new joint report issued by the U.S. Chamber and the Immigration Policy Center (IPC) of the American Immigration Council.

Randy Johnson, Chamber senior vice president of Labor, Immigration, and Employee Benefits, said during a January 25 press call to unveil the report, "The Chamber and IPC have a longstanding commitment to championing improvements to federal policies that would create lawful status for immigrant entrepreneurs and permit foreign talent to work in the United States. We hope that the report’s findings will spur positive discussions regarding immigration reform, but also provide new fuel for those already ongoing."

“Immigrant-owned growth businesses are hugely important to strengthening local economies as well as providing jobs essential to economic recovery,” said report author Marcia Drew Hohn, director of the Public Education Institute at The Immigrant Learning Center, Inc. “The U.S. Small Business Association estimates that small businesses have generated 64% of the net new jobs over the past 15 years and credits immigrant businesses with a significant contribution to this job growth.

Benjamin Johnson, executive director of the American Immigration Council said, “There has been a lot of attention paid to the high tech, highly educated immigrant entrepreneur, this report reinforces that it is less about your degree or the product you produce, and far more about recognizing a need in your community and having the skills and commitment to bring a dream to life.”

The report examines immigrant entrepreneurship in many different sectors, including neighborhood, growth, transnational, and science and technology firms, and demonstrates how these immigrant businesses create jobs for U.S. workers and contribute to America’s economic growth.

Immigrant entrepreneurs established 18% of all Fortune 500 companies, which combined have generated $1.7 trillion in annual revenue and currently employ 3.7 million workers worldwide, according to the Partnership for a New American Economy.

The Chamber and IPC report features profiles of immigrant entrepreneurs such as B.J. Wang, who owns E. Shan Tang Herbs, Inc., in Allston Village of Boston. Wang worked two jobs while building his business. Eighteen years later, people from across the country come to Allston Village to shop in his store, and the store’s Internet business is thriving.

Similarly, real estate agent Saul Perlera came to the United States at 16 as an undocumented immigrant from El Salvador who did not speak any English. In 2004, he started a real estate business that catered to the growing Latinos in East Boston and climbed from three employees to 14 by 2006.

The report also shines a light on some of the difficulties faced by immigrant entrepreneurs. Cecilia Maya of Maya Insurance in Boston recounts her unsuccessful quest for bank financing. She turned to her family to rent space and grow her business and soon had enough money to open two locations.

Current immigration laws, however, make it difficult for many immigrant entrepreneurs to contribute to the nation’s growth. The report contains administrative and legislative proposals that taken together could create an atmosphere that fosters growth:

• Create an entrepreneur-friendly culture—The Department of Homeland Security should create more business-friendly policies, promote and streamline entrepreneurship programs, and launch further engagement opportunities to seek feedback in how to address the unique circumstances of entrepreneurs, new businesses, and startups.
• Cut red tape—DHS should not demand excessive documentation or dismiss the achievements of well-qualified applicants who could start businesses or create jobs in the United States.
• Create a visa category specifically targeted for immigrant entrepreneurs—Congress should create a visa category for those who invest small amounts, or attract small but sufficient venture capital backing. Congress should likewise be urged to create access to permanent resident status for those who establish a business that produces jobs for U.S. workers.
• Remove hurdles for foreign students with desirable skills—Immigration law should permit foreign students in graduate programs (especially science, technology, engineering and mathematics) to remain in the United States after graduation.
• Recognize that immigrant entrepreneurship occurs across the spectrum of businesses—Immigration policy should address this phenomenon by establishing visa categories that provide opportunities for talented individuals from all backgrounds and walks of life.

As a follow up to the report, the Chamber and IPC will host an event at the Chamber on February 28^th featuring immigrant entrepreneurs representing businesses from a variety of sectors.  

Go here to read the full report.