Minority and Immigrant Entrepreneurship

Session Submission Type: Panel

Abstract

This panel presents new empirical research on the role of minority and immigrant entrepreneurship in fostering resilience and inclusion in the U.S. economy. Using large-scale and innovative datasets, the four papers explore how minority and immigrant business owners drive economic dynamism, overcome structural barriers, and adapt to labor market and life-cycle constraints. Collectively, the findings offer fresh insights for considering immigration and economic development policy through the lens of entrepreneurship. Aligned with APPAM 2025's theme, "Forging Collaborations for Transformative and Resilient Policy Solutions," the panel emphasizes the importance of combining academic research with policy insights to enhance support for underrepresented entrepreneurs, focusing on reducing disparities and leveraging the potential of immigrant and minority communities to strengthen local economies.

Paper Summaries

1. The Small Business Recovery from COVID: Disparities by Race
Robert Fairlie (UCLA and NBER)
This paper analyzes racial disparities in small business recovery using Current Population Survey data from 2021 to 2024. Although minority-owned businesses faced disproportionate early losses due to the pandemic, the findings reveal that Black, Latinx, and Asian entrepreneurs have seen stronger post-pandemic recoveries in business activity and earnings than their white counterparts. The paper highlights the critical role of minority entrepreneurs in fostering economic resilience.

2. Are Loans to Woman-Owned Firms Mispriced?
William D. Bradford (University of Washington), Chunbei Wang (Virginia Tech), Magnus Lofstrom (PPIC), Michael Verchot (University of Washington)
Using new national survey data on small business lending from 2022–2023, this paper investigates whether loans to woman-owned businesses are priced unfairly. Controlling for risk, the analysis finds that interest rates are significantly higher for woman-owned firms, pointing to persistent gender-based disparities in access to affordable credit. Additionally, the paper analyzes the differential effects by lender type and minority status. These findings raise important questions about equity in financial systems and lending practices.

3. Immigrant and Native Entrepreneurship through the Life Cycle
Sari Kerr (Wellesley College), William Kerr (Harvard Business School)
This paper constructs a unique platform by integrating data from the 2000 Decennial Census, the 2001-2021 American Community Surveys, the Census Household Composition Key File, the Integrated Longitudinal Business Database, and the Longitudinal Employer Household Dynamics. It investigates how life cycle events, such as raising young children, influence entrepreneurial decisions among immigrants and natives. The study evaluates if the higher business ownership rates among immigrants correlate with these life stage decisions, highlighting the complex interaction between structural and personal factors that shape entrepreneurial choices. The insights garnered offer significant implications for family, immigration, and labor policies aimed at fostering inclusive economic opportunities.

4. New Perspectives on Immigrant Entrepreneurship in the U.S. Economy
Parag Mahajan (University of Delaware)
Using restricted-access data from the Survey of Business Owners and Annual Business Survey, this study examines patterns in immigrant business ownership since 2002. It investigates whether and how immigrant-owned firms differ from native-owned firms during economic downturns and recoveries. The results offer insights into whether immigrant entrepreneurship acts as a stabilizing and regenerative force in times of economic crisis, with significant policy implications.

Policy Area

• Population and Migration Issues

Secondary Policy Area

• Social Equity and Race

Chair

• Chunbei Wang, Virginia Polytechnic Institute & State University

Discussants

• Magnus J Lofstrom, Public Policy Institute of California

• Le Wang, Virginia Polytechnic Institute & State University

Organizer

• Chunbei Wang, Virginia Polytechnic Institute & State University

Individual Presentations

• The Small Business Recovery from COVID: Disparities by Race - Presenting Author: Robert W Fairlie, University of California - Los Angeles

• Are Loans to Woman-Owned Firms Mispriced? - Presenting Author: William D Bradford

• Positioned at Extremes: Future Job Placements of Immigrant Students at U.S. College - Presenting Author: William Robert Kerr, Harvard University

• New Perspectives on Immigrant Entrepreneurship in the U.S. Economy - Presenting Author: Parag Mahajan, University of Delaware