Immigrant Entrepreneurs: Everything You Need to Know to Get Started

How to become an immigrant entrepreneur

Here are the steps you must take if you’re an immigrant planning to launch a business in the U.S.

1. Obtain a visa.

Like any government, the U.S. regulates who enters and lives in the country through a visa program. Visas are extended to tourists, students, family members and businesspeople. 

For work purposes, you can apply for several types of visas, including the following:

• H-1B
• L-1A and L-1B
• E-1 and E-2

H-1B visa

The H-1B is a special visa for temporary workers. In some cases, you’ll need at least a bachelor’s degree to qualify, and it’s most often used for highly technical work.

Kamal Bathla, managing director of Maestro Technologies, explained that his company acquired another company and now sponsors several H-1 workers. He emphasized that these workers are typically hired when a company cannot find an American-born employee with the necessary skills for a project, making H-1B visas more relevant for highly skilled workers.

“Having an ability to hire someone, as long as you exhaust all the options of hiring someone local, it’s important,” Bathla explained. “That’s why you go out to hire someone [with] an H-1 — because you can’t find someone local.”

While Bathla said it wasn’t difficult for his company to bring in a new employee, Eileen King English, a partner at the New Jersey-based immigration law firm Hartington King English LLC, emphasized that H-1B visas can be a significant barrier for some immigrants due to the high skill requirements.

“It is a difficult route,” King English cautioned. “When you’re a foreign national and you want to get an H-1B for yourself or for your company in the U.S., that’s difficult. … They [the visas] all have a hurdle to overcome to do it.”

L-1A and L-1B

The L-1 visa program is designed for company executives and employees with “special skills” who must relocate to a company branch within the U.S. The L-1 visa can also be used to establish new foreign company branches in the U.S.

This visa type has two levels: L-1A and L-1B:

• L-1A: USCIS says the L-1A program is meant to “transfer an executive or manager from one of its affiliated foreign offices to one of its offices in the United States.” 
• L-1B: The L-1B program is for a “professional employee with specialized knowledge” who must transfer from a foreign office to an existing office within the U.S.

Both visa types have nuanced requirements and parameters. For example, for the L-1B visa, the full USCIS definition of “specialized knowledge” includes knowledge of internal company processes, products, services, research, equipment, techniques or management.

Unless you’re opening a new company branch in the U.S., the L-1 program is for workers already employed by a business that wants to send them to the U.S. for work. L-1 visas are similar to H-1B visas in that the applicant must already be employed by a company with the means and infrastructure to facilitate the transfer.

E-1 and E-2

The E-1 and E-2 are treaty-based visas, meaning only countries with special agreements with the U.S. can qualify for them. The list of treaty countries does not include China, Russia or India. (It does, however, include Taiwan.)

These visas are for individuals seeking to come to the U.S. to start a new business or join an existing one. The E-1 visa is for “treaty traders,” while the E-2 is for “treaty investors.” You can read more about this distinction on the USCIS E-1 Treaty Traders page. 

King English noted that E-1 and E-2 visas have extensive reporting requirements. “The documentation required by the Department of State to show for a new office is just a high burden in terms of a five-year plan and showing the money you’ve already invested in the U.S. and how that money’s going to be used — all of those things,” King English explained. “It’s not a straight path.”

While the documentation may be extensive, it’s not insurmountable. The key is whether your country of origin has a treaty with the U.S. These visas must be renewed every two years, depending on your specific situation. 

2. Identify your business idea and customer base.

Jalal Maqableh, co-founder and principal partner at BLUE Box Strategy, immigrated to the U.S. from Jordan and now specializes in immigration entrepreneurship, helping business owners new to the U.S. get their operations up and running. He notes that having a viable business idea, identifying your customer base and maximizing your reach are crucial for success: 

• Develop a business idea: Great business ideas vary widely and will be unique to every immigrant entrepreneur. However, shopping and food ventures are popular options for immigrants, many of whom are inspired to open shops stateside to represent their culture and provide their home country’s unique goods and services. “People are looking for the traditional stuff, like clothes and accessories and the things that they used to use before coming to the United States,” Maqableh explained.  
• Determine market demand in the U.S.: Maqableh advises conducting research and speaking with community experts and leaders to determine if a business idea makes sense in the U.S. He cited an example of an entrepreneur who wanted to start a copying center in his local community. While copy centers can be booming businesses in some countries, there’s little demand for copy center services in the U.S. because several businesses, such as Walmart and Staples, may already provide those services locally.
• Identify your customer base: Maqableh noted that identifying your customer base is particularly crucial for immigrant entrepreneurs. While many start by catering to their specific cultural community, it’s wise to broaden your customer base to include other cultures in the area. For example, offering English menus, collaborating with community leaders and marketing to the broader community can help expand your reach.
• Maximize your reach: Maqableh says business owners can maximize their reach by catering to a traditional cultural community and the broader culture within an area. “If you go to an Arabic, Halal or Latino store and you don’t know the language and the culture, you will leave,” Maqableh explained. “The culture there is preserved for the local people, but Americans like to try new things and discover new things.” 

3. Decide on a business structure, handle legalities and obtain funding.

The legal and funding processes for entrepreneurship in the U.S. can differ significantly from those in other countries. Immigrant entrepreneurs should familiarize themselves with the following:

• Permit and inspection timelines: It’s crucial for immigrant entrepreneurs to understand state and municipal requirements and assess how long it takes to set up inspections and receive safety permits accurately. Maqableh described a typical, unfortunate scenario: “People were organizing their businesses and [think they’re] ready to open. They have the safety people coming to check the fire alarms, but because they didn’t arrange the proper permits, they’re forced to wait six months to fix the problem.”
• State and regional requirements: The detailed rules and laws for starting a business vary by state and town; understanding your area’s regulations is critical to successfully opening and running a business in the U.S. You’ll at least need to file articles of incorporation with the state you plan to operate in. This document officially registers your business as a legal entity. To do so, you’ll be required to choose a registered agent as a point of contact on all legal documents. 
• Funding options: Obtaining funding is a critical step. If you’re a naturalized citizen, lawful permanent resident, lawful non-permanent citizen or refugee, you may qualify for a Small Business Administration loan. Those with refugee status may have additional options, such as loans available through the Wilson-Fish or Microenterprise Development programs. Depending on your state, you may also qualify for specific government grants, which are typically listed on the USCIS E-1 Treaty Traders page. 

4. Market and launch your business.

Once you have everything in order legally and financially, you’ll be ready to bring your business idea to the world. Connecting with potential customers on a personal level is an essential element of any great business marketing plan. As an immigrant entrepreneur, you may have the advantage of a compelling narrative, so don’t shy away from sharing your personal story — after all, a good story sells products. Discussing the inspiration behind your business and what obstacles you faced to follow your dreams can quickly grab your audience’s attention. 

In our digital world, sharing your business and its story has never been easier. Social media business tools and email campaigns are excellent avenues for spreading the word about your impending business venture. After launching, these tools can help you maintain customer communication, build customer loyalty and earn repeat business.

Resources for starting a small business

If you’re starting a business, here is some helpful information on business basics that every entrepreneur should read:

• How to Start a Business: A Step-by-Step Guide: Starting your own business can be scary, but it doesn’t have to be. In our step-by-step guide, you’ll learn some key facets and basic processes entrepreneurs should know when starting their business.
• 20 Mistakes to Avoid When Starting a Business: Have you ever devoted a portion of your budget to projects that just won’t work? Have you ever been overwhelmed while managing a project, even though you have a full support team? We’ll give you some expert guidance to avoid common rookie mistakes in this helpful article. 
• Tax and Business Forms You’ll Need to Start a Small Business: Incorrectly submitting corporate taxes or noncompliance with federal regulations can be a nightmare. Avoid those worst-case scenarios by completing all the proper forms from the get-go.
• Employee Handbooks for Startups: Ensuring your workforce understands your corporate policies and values helps build an environment where your team will thrive. Providing a comprehensive handbook for every new employee to understand corporate policies and procedures is a great first step.
• What Business Startup Costs Should You Consider?: Balancing your budget to accommodate your required operating expenses is one of the earliest steps to complete. Understanding how you should allocate funds now can help you avoid headaches later. 

Challenging, but not impossible

Traveling to the U.S. for work or opening your own business once you’re here can be challenging, but it’s doable. Take advantage of local and online business resources, stay informed about local laws and regulations, network with other entrepreneurs and consider working with advisors. Success as a newly arrived entrepreneur is an excellent possibility. 

Natalie Hamingson contributed to this article. Source interviews were conducted for a previous version of this article.