About

This site was created as a final project for ETHN 120: Immigration in the U.S. Made by Brenda Alarcon at Santa Clara University.

This project focuses on Mexican and Central American immigrants in the United States who start and sustain businesses. Instead of looking only at who is admitted into the country, it centers what happens after migration: how immigrants build businesses, create jobs, and support communities while navigating legal, financial, and social barriers.

From Admissions to Entrepreneurship

My original project proposal focused broadly on immigrant admissions and who is allowed to enter the United States. In feedback, Dr. Sampaio emphasized that this topic was too broad and encouraged a more specific focus that built directly on the literature and the course themes. In response, I narrowed my project to examine Mexican and Central American immigrant entrepreneurship.

This shift keeps immigration policy at the center but moves the lens to economic life: how immigrants navigate the labor market, legal status, and racialization by opening businesses. It also aligns with course readings on legal liminality, economic incorporation, and the racial construction of "illegality."

Why Immigrant Businesses Matter

Immigrants are not just workers or students; many are also business owners. Immigrant-owned firms create jobs, provide culturally specific goods and services, and transform local economies. However, the ability to open and grow a business is shaped by immigration policy, access to capital, and racialization.

Mexican and Central American immigrants often work in low-wage sectors and face precarious legal status. Entrepreneurship becomes one of the few ways to gain some control over work conditions and income, even when the businesses themselves remain vulnerable.

Guiding Questions

Who is able to start a business among Mexican and Central American immigrants?
How do legal status, education, and credit histories shape opportunities to become an entrepreneur?
What kinds of businesses do immigrants build, and how do these businesses serve their communities?
Which policies and programs help or hurt immigrant entrepreneurs?

Latino-owned grocery store with fresh produce and customers — Neighborhood tiendas and mercados are key sites of Mexican and Central American immigrant entrepreneurship.

Street vendor food stand in a U.S. city — Street vending and food trucks provide flexible paths into business ownership, especially for undocumented workers.

How the Site Is Organized

About explains the focus on immigrant businesses and guiding questions.
Barriers outlines four major structural obstacles to starting and maintaining a business.
Evidence & Quotes provides direct citations from scholarly and policy sources.
Key Statistics visualizes data on immigrant entrepreneurship.
Resources lists organizations that support immigrant entrepreneurs.
Success Stories offers composite narratives based on patterns found in the research.

Together, these pages show that Mexican and Central American immigrants do not just experience immigration policy; they actively reshape local economies through entrepreneurship, even while facing legal and economic constraints.

Barriers to Immigrant Entrepreneurship

Research on Mexican and Central American immigrant entrepreneurs identifies four core areas of constraint: legal status, financial capital, language and culture, and social and racial discrimination.

1. Legal Status & Immigration Policy

Undocumented status limits access to formal employment, credit, contracts, and business licenses. Many immigrants live in a system that accepts their labor but restricts their rights and participation in key institutions. Fear of deportation or audits can discourage entrepreneurs from approaching banks, licensing offices, or government programs that might otherwise support their businesses.

Many business programs require Social Security numbers, tax IDs, or legal residency, effectively excluding undocumented entrepreneurs even when they have the skills and motivation to start a business.

“Undocumented young adults must negotiate a system that recognizes their labor but denies them full participation.”

Roberto G. Gonzales, 2011, p. 608. JSTOR

2. Limited Access to Financial Capital

Immigrant-owned firms rely heavily on personal and family savings and are less likely to receive bank loans than native-born firms. Latino and Mexican entrepreneurs face systemic discrimination in lending, even when they have similar credit profiles as white business owners. Nearly half of Mexican immigrants arrive with no credit history, which makes it difficult to qualify for business credit.

“Immigrant-owned businesses rely more heavily on personal and family savings and are less likely to receive bank loans.”

Robert Fairlie, SBA, 2012. SBA report

3. Language & Cultural Barriers

Many relief programs, grants, and business services operate only in English, which limits who can access them. Business education programs rarely provide Spanish-language or culturally responsive training that matches immigrant realities. Complex contracts, leases, and licensing forms can be difficult to navigate without translation or guidance.

“Many immigrants could not access COVID-19 relief programs because materials were only available in English.”

American Immigration Council, 2020. AIC report

4. Social & Racial Discrimination

Mexican and Central American immigrants are often racialized as “illegal,” which affects how landlords, customers, and suppliers treat their businesses. Discrimination shows up in loan approval gaps, landlord skepticism, and policing of public space where street vendors and other small businesses operate.

“The figure of the ‘illegal alien’ is an ideological construct that renders Mexican migrants a deportable and subordinate workforce.”

Nicholas De Genova, 2004, p. 161. Article

Latino entrepreneurs in a business workshop — Community organizations and Small Business Development Centers offer workshops that help immigrants navigate licensing, loans, and business planning.

Street vendors and police presence in a city — Street vendors and small businesses may face complaints or over-policing that limit where they can operate.

Evidence & Direct Quotes

This page collects key quotes from scholarship and policy reports that support the analysis on legal status, capital access, language, and discrimination.

Legal Status & Immigration Policy

“Undocumented young adults must negotiate a system that recognizes their labor but denies them full participation.”

Roberto G. Gonzales, 2011, p. 608. JSTOR

“Undocumented immigrants have significantly lower wages and lower returns to education than documented immigrants.”

Hall, Greenman & Farkas, 2010. Article

“Legal structures and their implementation generate vulnerability and punitive consequences for immigrants.”

Cecilia Menjívar, 2006, p. 1000. JSTOR

Financial Capital

“Immigrant-owned businesses rely more heavily on personal and family savings and are less likely to receive bank loans.”

Fairlie, SBA, 2012. SBA report

“Minority-owned firms face higher loan denial rates and receive smaller loans even with identical creditworthiness.”

Fairlie & Robb, 2008. MBDA study

“Nearly half of Mexican immigrants report having no credit history upon arrival in the United States.”

Migration Policy Institute, 2024. MPI profile

Language & Culture

“Many immigrants could not access COVID-19 relief programs because materials were only available in English.”

American Immigration Council, 2020. AIC report

“First-generation Latino entrepreneurs often lack access to culturally aligned business support and education.”

Immigrants Rising, 2025. Immigrants Rising report

Social & Racial Discrimination

“The figure of the ‘illegal alien’ is an ideological construct that renders Mexican migrants a deportable and subordinate workforce.”

Nicholas De Genova, 2004, p. 161. JSTOR

“Latino business owners continue to face significant gaps in loan approval and loan size.”

Small Business Administration, 2024. SBA facts

“Latino immigrant businesses frequently encounter discrimination from customers, landlords, and service providers, limiting growth opportunities.”

Rutgers SMLR Review. Rutgers review

Key Statistics

Visual data showing the scale, innovation, and sector concentration of immigrant-owned businesses.

Immigrant and native business formation chart — Immigrants are more likely than natives to start new businesses. Source: America's Voice, summarizing research on immigrant entrepreneurship.

Innovation of immigrant-led firms — Immigrant-led new firms are more likely to produce new technology, hold patents, and bring innovations to market. Source: Annual Business Survey, via research on immigrant innovation.

Main Street immigrant business ownership — Immigrants own a high share of "Main Street" businesses such as gas stations, grocery stores, and restaurants. Source: ForumTogether analysis of immigrant entrepreneurs.

Latino business outlook statistics — Outlook and trends for Latino-owned businesses in the United States.

Latino population in the United States — Latino population demographics and growth in the United States.

Loan approval rates for immigrant businesses — Loan approval rates and access to capital for immigrant and Latino entrepreneurs.

Average contract values for immigrant businesses — Average contract values and business opportunities for immigrant-owned firms.

Education levels of immigrant entrepreneurs — Education levels and educational attainment among immigrant entrepreneurs.

Key Statistics

Immigrants Start Businesses at Much Higher Rates

Immigrants are 80% more likely than U.S.-born citizens to start a business. Source: MIT, 2022

Mexican Immigrant Population

10.9 million Mexican immigrants lived in the U.S. in 2023. Source: Migration Policy Institute

Mexican Immigrants & Education

50% of Mexican immigrants lack a high school diploma and only 9% have a bachelor's degree, which affects access to capital and training. Source: Migration Policy Institute

Immigrant Business Contribution

Immigrant entrepreneurs account for 24% of all businesses in the U.S. Source: American Immigration Council

Latino-Owned Businesses Growth

Latino-owned businesses have grown at three times the national average, yet they receive the smallest share of all SBA/PPP loans. Source: Stanford Latino Entrepreneurship Initiative, 2023

Latino Business Employment & Growth

More than 3 million people are employed by nearly 350,000 Latino-owned businesses. From 2007 to 2019, the number of Latino-owned businesses grew by 34% while the number of White-owned businesses fell by 7%. Source: Stanford Graduate School of Business

Post-Pandemic Recovery

Between 2019 and 2022, Latino-owned businesses reported median growth of 25%, compared with 9% for White-owned businesses. Source: Stanford Latino Entrepreneurship Initiative

Credit History Barrier

49% of Mexican immigrants have no credit history upon arrival in the United States, limiting access to capital. Source: Migration Policy Institute

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Resources for Immigrant Entrepreneurs

Organizations and programs that provide funding, legal support, mentorship, and training for immigrant entrepreneurs.

Funding & Business Support

Immigrants Rising – Entrepreneurship Support

Grants, training, legal FAQs, and guidance specifically for undocumented and immigrant entrepreneurs. Visit Immigrants Rising

U.S. Small Business Administration (SBA) – Funding Programs

Microloans, regular loans, and technical assistance for small businesses, including immigrant-owned firms. SBA funding programs

Latino Business Action Network (LBAN)

Stanford-affiliated initiative that offers education and research for Latino founders. Visit LBAN

Small Business Development Centers (SBDCs)

Free one-on-one advising and workshops, often with Spanish-language support. Find your local SBDC

SCORE – Free Business Mentors

National network of volunteer mentors who support new and growing businesses. Connect with a mentor

Legal Status & Scholarships

Dreamer’s Roadmap

Helps immigrants, including undocumented students, locate scholarships and educational resources. Dreamer’s Roadmap

National Immigrant Justice Center (NIJC)

Legal support for immigration relief, work permits, and documentation. Visit NIJC

Mexican Consulates – IME Programs

Mexican consulates offer financial education, business workshops, and entrepreneurship training through IME (Instituto de los Mexicanos en el Exterior). Locate a consulate

Stories of Struggle & Resilience

These stories blend real documented patterns with composite narratives from Mexican and Central American immigrant entrepreneurs in the Bay Area. They include successes, stalled dreams, financial setbacks, and everyday struggles in food stands, retail shops, gas stations, and construction.

“María” – Taco Truck Owner, San Jose

María migrated from Michoacán and spent her first years selling tacos outside a laundromat without permits. Police citations, fear of immigration enforcement, and English-only permit forms stalled her progress for years. A Bay Area worker center eventually connected her to Spanish-language licensing workshops. After three failed loan applications because she lacked credit history, she finally secured a microloan through a community lender. Her truck now provides jobs to two relatives, but she still faces harassment from inspectors and unpredictable street vending rules.

“Don Rafa” – Fruit Stand Vendor, Oakland

A street vendor near East Oakland’s Lake Merritt, Don Rafa sells mango, pepino, and watermelon—often facing police sweeps targeting food vendors. He once lost an entire cart during a confiscation and had to rebuild from scratch using borrowed money. His undocumented status prevents him from accessing small business grants or unemployment during slow seasons. Despite this, he stays because his customers include low-income families and unhoused residents who rely on his affordable produce.

“Yessenia & Marco” – Gas Station Franchise Owners, Redwood City

After years working minimum-wage jobs, the couple bought a small independent gas station. During the first year, a predatory contract locked them into overpriced fuel deliveries, causing major financial strain. English-language legal documents were difficult to understand, and hiring a lawyer was too expensive. Community business counselors eventually helped them renegotiate terms. Their station now hires four workers, but fluctuating fuel prices and rising commercial rent keep their margins slim.

“Ana & Jorge” – Family Grocery Store, San Mateo

Facing rising commercial rents and landlord skepticism, Ana and Jorge struggled to secure a lease for their tienda. A Latino Chamber of Commerce guided them through inspections and helped them apply for a local improvement grant. Their store now serves newly arrived immigrants who depend on culturally specific foods—and functions as an informal information hub about housing, legal clinics, and jobs.

“Oscar” – Construction Worker Turned Contractor, Hayward

Oscar specialized in residential remodeling but struggled for years to transition from day labor to licensed contractor. His undocumented status prevented him from obtaining a contractor’s license until California changed eligibility rules. Even after becoming licensed, banks rejected his loan applications due to a thin credit file. He built credit slowly through secured cards and community lenders and now runs a two-person remodeling team focusing on ADU construction.

César Chávez & Dolores Huerta – Historical Figures

Both came from families of Mexican migrant laborers and rose to organize the United Farm Workers. Their barriers included poverty, discrimination, and violent retaliation for labor organizing. Their legacy shows how Mexican immigrant communities have long confronted exploitation while building economic and political power.

Lupe Hernández – Latina Inventor (Widely Discussed Origin Story)

Although debated, the widely shared story credits Mexican-American nurse Lupe Hernández with inventing hand sanitizer in 1966 when she realized alcohol could be suspended in gel. The story became famous during COVID-19 as an example of how immigrant-rooted innovation is often overlooked or uncredited.

Taco truck serving customers at night — Street food vendors—especially Mexican and Central American entrepreneurs—face unique challenges navigating licensing, police presence, and unpredictable income.

Legal Information for Immigrant Entrepreneurs

This section summarizes key U.S. laws and policies that shape what immigrant entrepreneurs can and cannot do. It is designed for Mexican, Central American, and other immigrant founders navigating business formation, immigration status, and financial systems.

1. Business Formation Laws

In most states, you do not need U.S. citizenship or a green card to register a business. People with ITINs (Individual Taxpayer Identification Numbers) can form LLCs, corporations, and sole proprietorships, as long as they file taxes correctly.

Many undocumented, DACA, and visa-holding immigrants wrongly believe they are not allowed to own businesses. Legally, the issue is not citizenship but tax compliance and state-specific licensing rules.

Key link: IRS – Applying for an ITIN

2. ITINs & EINs

Immigrant entrepreneurs without Social Security numbers can use an ITIN to:

Pay business taxes
Open some business bank accounts
Apply for local business licenses
Legally form an LLC

An EIN (Employer Identification Number) is like a Social Security number for your business. You can apply for an EIN with an ITIN, and you may need it to hire employees, open a business bank account, or file certain tax forms.

Key links: IRS – ITIN overview · IRS – Employer Identification Numbers (EIN)

3. Immigration Pathways Connected to Entrepreneurship

A few U.S. immigration options are specifically connected to entrepreneurship or investment. They are limited and usually require capital, proof of innovation, or existing businesses. These programs typically apply to founders, not regular workers.

International Entrepreneur Rule (IER) – Sometimes called "startup parole." Allows certain founders to stay in the U.S. temporarily if their startup has high growth potential and significant investment or public benefit.
USCIS – International Entrepreneur Parole
E-2 Treaty Investor Visa – For entrepreneurs from specific countries who invest a substantial amount in a U.S. business. Mexico qualifies; most Central American countries do not.
USCIS – E-2 Treaty Investors
L-1 Visa – For business owners who already run a company abroad and want to open a U.S. branch.
USCIS – L-1 Visa
O-1 Visa – For people with "extraordinary ability" (for example in technology, innovation, or social impact). Some high-profile founders use this pathway.
USCIS – O-1 Visa

4. Banking, Credit, and Anti-Discrimination Rules

Under federal law, many banks can accept foreign passports, ITINs, consular IDs (such as the Mexican matrícula consular), and other documents to open accounts. This matters because Mexican and Central American immigrants are disproportionately unbanked.

Immigrants applying for business loans or credit cards are also protected by consumer finance laws against discrimination and unfair lending practices, although discrimination still happens in practice.

Key links: FDIC – Acceptable ID for Bank Accounts · CFPB – Immigrants & Money

5. Licensing and Permits

Some professions (like real estate agents, nurses, or certain contractors) require a Social Security number or legal status in many states. However, several states now allow undocumented or ITIN-only applicants to get local business licenses.

In California, AB 2184 allows local governments to accept ITINs instead of SSNs for business licenses. This is especially important for Mexican and Central American entrepreneurs who operate small storefronts or food trucks.

Key link: California AB 2184 – Business Licenses for All

6. Laws That Create Barriers

Immigration laws passed in the 1990s still shape how safe immigrants feel interacting with government systems, banks, and licensing offices. The most important is the 1996 IIRIRA (Illegal Immigration Reform and Immigrant Responsibility Act).

Created 3-year and 10-year bars on re-entering the U.S. after “unlawful presence.”
Increased penalties and enforcement, contributing to fear of detection.
Discouraged many immigrants from applying for loans, licenses, or other programs connected to government records.

Another example is the Public Charge rule, which in some versions penalized immigrants for using certain public benefits. Even when they did not apply, confusion and fear kept many from accessing non–means-tested programs, including some business support.

Key links: IIRIRA summary · USCIS – Public Charge

7. Policies and Programs That Support Entrepreneurs

Some state and federal initiatives try to expand access for immigrant entrepreneurs:

State "Right to an ITIN" policies – States like California, New York, and Illinois allow ITINs for business licenses, state tax filings, and some financing programs.
CDFIs (Community Development Financial Institutions) – Mission-driven lenders that focus on underserved borrowers, including immigrants who lack traditional credit histories.

Key link: U.S. Treasury – CDFI List

This page is for educational purposes only and is not legal advice. Immigrant entrepreneurs should consult an immigration or business attorney for individualized guidance.

Video Library: Immigrant Entrepreneurship

Curated English and Spanish video resources on immigrant entrepreneurship, barriers, legal rights, and step-by-step business guidance. These can be used as class materials or community-facing tools.

Impact & Economic Contributions

Immigrant Entrepreneurship: America’s Secret Weapon

Overview of how immigrant-owned businesses drive innovation, job creation, and local economies. Watch on YouTube
How Immigrants Influence the U.S. Economy?

Explains the broader economic impact of immigrants, including entrepreneurship and small business formation. Watch on YouTube

Barriers & Challenges

Immigrant Entrepreneurs Driving Small Business in the U.S.

Highlights both contributions and obstacles, including immigration status and access to capital. Watch on YouTube
Why Do Immigrant Entrepreneurs Have to Work Harder to be Accepted?

Discusses bias, stereotypes, and social barriers facing immigrant founders. Watch on YouTube
Navigating Entrepreneurship: Immigrant Entrepreneurs in Fresno

Local case study featuring immigrant business owners, their stories, and support networks. Watch on YouTube

Legal Rights & Immigration Pathways

Rights of Immigrant Business Owners: Protecting Yourself and Your Employees

Covers worker rights, compliance, and how immigrant-owned businesses can protect themselves legally. Watch on YouTube
Moving to the U.S. as an Immigrant Entrepreneur

Explains possible visa and immigration pathways for founders who want to start a business in the U.S. Watch on YouTube
Residencia USA para Emprendedores (EB2 NIW)

Spanish-language explanation of investor and entrepreneur visa options. Ver en YouTube

How to Start a Business (English & Spanish)

ImmigrantBizHub – Entrepreneurship Curriculum for Undocumented Immigrants

Practical training series tailored specifically to undocumented entrepreneurs. Watch on YouTube
¡5 tips para iniciar NEGOCIOS EN USA para inmigrantes!

Spanish video offering step-by-step tips for starting a business in the U.S. Ver en YouTube
Cómo Crear tu Empresa en EE.UU. Siendo Inmigrante Indocumentado

Spanish-language guide for undocumented immigrants on how to legally structure a business. Ver en YouTube
Cómo iniciar un negocio en los Estados Unidos, DEBES …

Seminar-style overview in Spanish of requirements and steps to launch a business. Ver en YouTube

Real Stories & Support

“I am an Immigrant Entrepreneur” Video Series

Playlist of immigrant entrepreneurs sharing their journeys, challenges, and community impact (multiple languages). Watch the playlist

These videos are external resources. Always evaluate who created them (community organization, government, law firm, etc.) and how their perspective aligns with immigrant rights and racial justice.