Unlocking the Secrets of Immigrant Entrepreneurs: Lessons from a Refugee-Turned-Oxford Professor

Many people helped me on my journey from a refugee camp to teaching at Oxford University, but one of the most influential was a man I never met. A man who, indirectly, showed me that people like us could succeed and set me on the path to discovering the secrets of immigrant entrepreneurs’ success.

Having been brought up as part of a persecuted Turkish ethnic minority in communist Bulgaria and then as a refugee in Turkey, I found myself suddenly thrown into an unfamiliar world when I received financial aid to study at the University of Miami in the late 1990s. Nothing represented the shock of the new more than the strange devices we were expected to write our essays on—it was the first time I’d ever seen a computer.

But my unease turned to inspiration when I discovered that the man who had played the key role in creating the device I was tentatively using—Andrew Grove, the former CEO of Intel—was a refugee and immigrant, just like me. If he could make it in a new country, why couldn’t I?

Posing that question led me to discover more about the contributions of immigrants to American life and eventually ask another, much more important, question: Why are immigrants such successful entrepreneurs?

The evidence for immigrant entrepreneurs’ success

Despite what some might argue, the statistics on immigrant entrepreneurs’ economic impact are crystal clear. Immigrants and their children comprise only 27% of the U.S. population, but they have, according to the American Immigration Council, founded 46% of the companies on the Fortune 500 list. Collectively, those 230 “New American” Fortune 500 companies collected $8.6 trillion in revenue in fiscal year 2023, a figure higher than the GDP of every country in the world except the U.S. and China.

Immigrants’ impacts on entrepreneurship are not restricted to the Fortune 500 list. Indeed, 80% of billion-dollar startups have a first- or second-generation immigrant as a founder or senior leader. And immigrant-founded businesses generally grow faster and last longer than the companies created by their native-born peers. In other words, the data shows that immigrants make America great and are keeping it that way.

Understanding why immigrants are so successful

But surprisingly, despite all that evidence of success, researchers very rarely ask why immigrants are so successful and what we can all learn from them. To answer them, I studied many of the most successful immigrant entrepreneurs in the U.S. today—from companies as diverse as Duolingo and Dermalogica, Wondery and WhatsApp—to see if I could identify the secrets underpinning their success.

Of course, the complexities of the immigrant experience cannot be easily distilled into simple solutions. However, my research has identified distinct principles commonly applied by immigrant entrepreneurs that explain their success. Here, I will present three: one related to the past, one to the present, and one to the future.

The past—using your heritage to inspire a business idea

One key reason why immigrant entrepreneurs are more likely to formulate successful business ideas is that their backgrounds have given them rich experiences of living across cultures. Immigrants generally start by looking inward, creating business ideas that are rooted in their multicultural identities.

For example, Reem Hassani, co-founder of Numi Organic Tea, explains that entrepreneurs need to follow their heart and vision first. Similarly, Jan Koum, who grew up in the USSR, drew on his experiences to create WhatsApp, a fully encrypted communication tool.

The present—engaging communities to turn ideas into realities

Having a great idea is the first step; the next is making it a reality. Immigrant entrepreneurs prioritize community. Having often been cut loose from the ties that gave them strength in their own countries, they become experts at nurturing connections in their new homes.

A great example is Hamdi Ulukaya, who transformed an abandoned Kraft factory into Chobani, the leading Greek yogurt producer in the U.S., by integrating local communities and refugees into his workforce.

The future—business with a purpose beyond profit

A key reason for immigrant entrepreneurs’ success is their motivation by purposes that transcend profit. Luis von Ahn, inspired by witnessing poverty in Guatemala, created Duolingo, democratizing education and achieving a $10 billion valuation.

Learning from immigrant entrepreneurs

The strategies that immigrant entrepreneurs inspire can be used by anyone. Here are tips for putting their principles into practice:

1. Value cross-cultural experience. Embrace opportunities to work abroad and recruit staff with cross-cultural knowledge.
2. Focus on what matters to you. Draw on your experiences to create a company that reflects your values.
3. Prioritize community. Build trust by listening to stakeholders and integrating their insights.
4. Embrace a broader business purpose. Align your business goals with societal improvements to enhance your competitive edge.

We may be living in increasingly challenging times for immigrants, but I remain confident that their entrepreneurial spirit will continue to shine through, helping to grow the economy and inspiring others to emulate their world-changing achievements.