A view of skyline in Tysons, Photo: Lluck002/Wikimedia Commons
The unemployment rate in Virginia is the lowest in years at 3.6 percent. The state is home to three of the wealthiest American counties – Loudoun, Arlington and Fairfax.
The private sector is booming in a range of traditional and new areas – from small and medium businesses like restaurants and groceries to health and information technology services in the posh Tysons business district. Then the Dulles Airport, Dulles Technology Center and government jobs at places like the Department of Homeland Security are driving growth and spending. A majority of analysts agrees that despite trends of uneven progress in some rural areas – as debated during gubernatorial race – the overall economic outlook reflects sustained growth.
But in this impressive mix of enterprise and growth is the role of immigrants, which has been amplifying steadily over the last decade, particularly immigrants from Pakistan, India, South Korea, and many African and Arab countries have prospered in the state.
Immigrants make up 12.2 percent of the state’s population but have become a key source of manpower and entrepreneurship, generating tens of billions of dollars in output.
According to the Commonwealth Institute, around 11 percent of Virginia’s immigrant workers were self-employed in 2015, a significantly higher ratio when compared to 7 percent of the state’s American born workers.
The Institute also says that about 4 percent of Virginia’s immigrant workers are self-employed owners of incorporated businesses, compared to nearly 3 percent of U.S.-born workers.
“Even though Virginia immigrants only make up around 12 percent of the population, they constitute around 34 percent of all Main Street business owners, a rate that is still growing and is 5 percent above the national average,” the Institute said in a study this year.
According to American Immigration Council immigrant-led households in the state paid $6.7 billion in federal taxes and $2.7 billion in state and local taxes in 2014.
WHAT MAKES IMMIGRANT ENTREPRENEURS SUCCEED?
An array of factors explains this trend. First is the obvious heightened sense of motivation that immigrants bring with them and the extra amount of hard work that they put in to pursue the American Dream. Secondly, Washington metro area prides itself on having diverse communities.
So individuals starting new entrepreneurs have some critical advantage for entrepreneurs as they start with a readily available network, and a market to introduce their products and services.
Then Virginia’s openness, the ease of doing business, availability of capital and perhaps most important of all its tradition to welcome the best and the brightest from within the country and world.
Cindy Shao speaking to a group of entrepreneurs
“I think there are a couple of important things – first Virginia is very diverse and multicultural – and then the state, particularly Norther Virginia has a very good school system, and people move to this area to do business and also to make sure that their children have a quality education,” says Dr. Cindy Shao, President of the Asian American Chamber of Commerce.
The government is also generally very supportive of entrepreneurs and recognizes the value of diverse and minority communities running successful businesses, says Shao, the founder of AACC, which has a network of around 5000 friends, members and supportive circles.
EDUCATION AND SKILL DEVELOPMENT
The higher education culture in Virginia also helps foreign and immigrants students greatly as some of the best universitiees provide opportunity to pursue excellence in some of the major areas that attract employers from Richmond to Fairfax.
For example, businesses like the IT and services based in business districts like Tysons Corner readily take a lot of graduates, keeping the window open for innovation.
American Immigrant Council says the greatest shares of immigrants in Virginia are college-educated, with two-fifths of adult immigrants having a college degree or more education in 2015.
IMMIGRANT WORKFORCE
The Commonwealth Institute says Virginia along with Maryland has the highest immigrant workforce participation rates nationally, excluding D.C., and below average unemployment rates.
Futuristically for the state, majorities across communities of immigrants are aged 25-54, promising several years of economic contributions. The next generation of immigrant automatically becomes productive for the area.
CHALLENGES AND FUTURE PROSPECTS
The immigrants who establish their business on firm footing are well poised to stimulate economic growth but beginners among new immigrants also face some challenges like finding the right mix for their talent and work.
The Commonwealth Institute discussed this in a report, noting that “despite high levels of educational attainment, immigrants in Virginia are less likely to work in jobs that require their level of credentials than U.S.-born residents – an effect commonly referred to as “brain waste.”
Another obstacle for the new arrivals form non-English speaking countries face is the lack of proficiency in the language.
Both business leaders and advisers say both can be overcome if the communities raise awareness about the right avenues to address these basic challenges.
