How Immigrant Entrepreneurs Build Lasting Businesses - HBR IdeaCast Recap

Podcast: HBR IdeaCast

Published: 2025-04-22

Duration: 26 min

Summary

Immigrant entrepreneurs significantly contribute to the economy by owning a substantial portion of new businesses and demonstrating resilience through unique strategies. Their experiences and principles can offer valuable lessons for all entrepreneurs, especially in the face of rising anti-immigrant sentiment.

What Happened

In this episode, host Alison Beard welcomes Neri Kara Silliman, an expert on entrepreneurship and founder of a luxury leather goods company, who shares insights from her research on immigrant entrepreneurs. With immigrants comprising 14% of the U.S. population yet owning about a fifth of new businesses, Kara highlights how these entrepreneurs not only fill gaps in the market but also drive innovation and economic growth. Their companies often outlast those founded by natives, contributing trillions to their adopted economies.

Kara reflects on her own journey as an immigrant from Bulgaria, emphasizing the challenges that shaped her entrepreneurial mindset. She notes that many immigrant entrepreneurs start businesses out of necessity due to limited resources and recognition of their qualifications. This necessity often fosters a unique resilience and innovative spirit, leading to long-lasting enterprises. She also identifies eight key principles that promote longevity in immigrant-founded businesses, including the importance of self-sufficiency, community building, and generating profit ethically, which collectively contribute to sustainable success in the business landscape.

Key Insights

Key Questions Answered

What are the key principles for immigrant entrepreneurs?

Neri Kara Silliman identifies eight key principles that drive long-term success for immigrant and second-generation entrepreneurs. These include bridging cultures, building from the past forward and the future back, forging authentic connections, generating profit the right way, building community, reframing rejection, frying in your own oil, and daring to play your hand. Each principle reflects the unique challenges and opportunities that immigrant entrepreneurs face.

How do immigrant entrepreneurs contribute to the economy?

Immigrant entrepreneurs not only start a significant number of new businesses but also enhance economic growth and innovation. They own approximately a fifth of new businesses, and research indicates that immigrant-founded companies tend to grow faster and survive longer than their native counterparts. This resilience contributes trillions of dollars to the economies of their adopted countries.

What does 'frying in your own oil' mean in entrepreneurship?

The phrase 'frying in your own oil' is a lesson from Kara's grandfather, emphasizing the importance of self-sufficiency in business. Kara explains that many startups seek rapid growth through external funding, which can lead to pitfalls. Instead, she advises entrepreneurs to grow at a sustainable rate that matches their profitability, allowing them to remain creative and self-sustaining.

How does uncertainty in immigrant backgrounds impact business strategies?

Immigrants often come from backgrounds filled with uncertainty, which shapes their approach to entrepreneurship. They are more likely to understand the consequences of a lack of resources and trust in institutions, leading them to prioritize building businesses that are not only profitable but also sustainable and community-oriented. This perspective fosters a dual pursuit of purpose and financial success.

In what ways do immigrant entrepreneurs innovate?

Kara emphasizes that immigrant entrepreneurs often start businesses out of necessity, which drives innovation. Their unique experiences allow them to identify gaps in the market and develop creative solutions that can lead to long-lasting impacts. By leveraging their diverse backgrounds and bridging cultural divides, they create businesses that resonate with a wider audience and contribute positively to their ecosystems.