Immigrants & Refugees

A Growing Demographic Of Entrepreneurs

Editor’s note: This is the second in a series of features detailing immigrants and refugees within Nebraska communities.

A 2019 report from SCORE and the Small Business Administration found that there are 3.2 million immigrant-owned businesses in the U.S., employing 8 million people and contributing $1.3 trillion to the U.S. economy.

Studies have found that migrants, despite losing nearly all their human capital, are more likely to start businesses. An MIT study went as far as to deduce that immigrants are 80% more likely to start a business than their U.S.born counterparts.

The numbers track. In 2019, immigrant-owned businesses accounted for 25% of all new businesses (SCORE), despite only making up about 14% of the U.S. population. Those entrepreneurs are leading the charge for tailored

resources to help even more migrants achieve the “American dream.”

Language Barriers

In Omaha, immigrants make up almost 11% of the population according to the most recent census. Regardless of home country, professionals working with immigrants from all countries named language barriers as the No. 1 challenge. “For people that are like me, from non-English speaking countries, they come [to the U.S.] and the first, and the biggest hurdle initially, is to learn English,” said Karine Sokpoh, founder of 402 Legal and the Midlands African Chamber. Sokpoh emigrated from Togo, a country in West Africa.

For example, Dekow Sagar, founder and executive director of the International Council for Refugees and Immigrants (ICRI), said many

BY SAVANNAH BEHRENDS | PHOTOGRAPHY BY DEBRA S. KAPLAN

immigrants struggle to comprehend questions on job applications.

“Because what they consider employment is somewhat different,” he said. “In their head, they’re thinking, well, I’ve not worked for someone, I’ve never been paid a salary.

“A lot of them have experience in running their own businesses, and if you talk to them, you understand that this person was in business for an extended period of time.”

This language barrier keeps immigrants in what professionals have defined as “survival mode.”

Sokpoh said certifications, licenses and degrees from other countries are not always recognized across borders.

“These are mothers and fathers, and they can’t just sit around until they learn English, until they can become a nurse again or a licensed engineer and architect, and make money,” she said. “So what they do is they get the first available job, whether that’s McDonald’s or housekeeping or something else.”

Further, when relocating, immigrants lose their human capital, what Sokpoh calls the “three C’s:” capital, coaching and connections. Without those three items, it can be difficult for immigrants to navigate a system.

“It’s not only the language barrier,” said Lulu-A-Ferdous, program manager at ICRI. “It’s the regulations, the tax system, the whole legal process. It’s not only daunting, it can be overwhelming.”

Seeking Capital

For newly arrived immigrants, receiving a loan or funding for a business is difficult because credit scores, even if tracked in their home country, do not cross borders. Additionally, the loss of connections and networks challenges potential owners.

“They say most small business owners get funding by bootstrapping: family, friends, their own savings,” Sokpoh said. “It makes it tougher for [immigrants] to get that initial capital going, because they just don’t have that network available.”

Information from SCORE and the SBA confirm that immigrants are 72% to 83.5% more likely to be rejected when seeking expanded lines of credit, crowdfunding, new investors or online lenders. Eighty-one percent use what personal savings they have to start their business.

ICRI is tackling this challenge through the Refugee Microenterprise Development Program, funded by the U.S. Department of Health and Human Services.

In addition to distributing loans of up to $15,000, ICRI provides case management services, financial training and help through the legal process of starting a business.

The loan and payments are also reported to a third party so that refugees can begin building credit.

To qualify, immigrants must have entered the country less than five