I visited businesses in various cultural malls, spoke with entrepreneurs and policy makers and my sense as of today: slow recovery with rents due and low customer traffic are pushing immigrant businesses over the edge. It varies by immigrant group and citizenship status, with Latino businesses hit the hardest. Minnesotans are coming out and supporting these businesses in a pro active way – something very inspiring.
Below is data for smart policy as Minnesota works to rebuild immigrant businesses devastated in recent weeks.
The CDFI, foundation and government world has responded with grant programs and as they sift through applications it will be helpful to ensure – reach is statewide, covers a wide range of sectors of the economy where these businesses are found, and attentive to employer as well as non employer businesses.
Policy makers should note that funding is just one of the hurdles that immigrant businesses are facing – the breakdown of trust and the climate of fear and anxiety has taken its toll and the warm breath of community felt by all during the recent weeks should continue.
The need of the hour is for elected leaders to implement a sensible immigration policy so that Minnesota does not have to go through this trauma again. We have very powerful national leaders on both sides of the aisle in Minnesota who can make that happen. They need to remind the nation that on average a Minnesotan pays the federal government $9000 more than what we receive in federal benefits (USAfacts.org)
What is also needed is some kind of support to banks and property owners to allow tenants some grace in rent payments for the next 3 months.
The public needs to commit at least 10 percent of their budget shopping locally to stir demand.
The urgency is real.
The Annual Survey of Business is the right place to look but very difficult to access. Here is the data I found from 2023 and provided in the tables below (with links to the Census files below):
Statewide there are 78,500 immigrant firms without employees in Minnesota, or 15.6 percent of all non employer firms. Most immigrant businesses are these sole proprietors, some with storefronts, others driving Ubers or homebased. They are likely to be outside the radar of the grant making entities.
In 16 counties non-employer immigrant businesses make up 10 percent or more of the total non-employer businesses.
There are 7,212 immigrant firms with employees or 8 percent of all employee firms in Minnesota
Let’s look at the industry spread of immigrant businesses:
First – immigrant businesses with employees – strong presence in health care and social assistance and accommodation and food services, with retail, transportation, other services, professional services and information having a larger presence.
| Meaning of NAICS code | Meaning of Owner characteristic code | Number of owners of respondent employer firms | Percent of number of owners of respondent employer firms (%) |
| Health care and social assistance | Owner was not born in the U.S. | 1,606 | 18.9 |
| Accommodation and food services | Owner was not born in the U.S. | 1,223 | 18.6 |
| Retail trade | Owner was not born in the U.S. | 822 | 8.9 |
| Transportation and warehousing (661) | Owner was not born in the U.S. | 244 | 8.6 |
| Other services (except public administration) (663) | Owner was not born in the U.S. | 384 | 8.4 |
| Information | Owner was not born in the U.S. | 85 | 8.1 |
| Professional, scientific, and technical services (664) | Owner was not born in the U.S. | 1,040 | 8.1 |
| Total for all sectors | Owner was not born in the U.S. | 7,212 | 7.9 |
| Administrative and support and waste management and remediation services | Owner was not born in the U.S. | 427 | 7.6 |
| Wholesale trade | Owner was not born in the U.S. | 223 | 4.4 |
| Real estate and rental and leasing | Owner was not born in the U.S. | 226 | 3.8 |
| Construction | Owner was not born in the U.S. | 522 | 3.6 |
| Finance and insurance (662) | Owner was not born in the U.S. | 143 | 3.1 |
| Manufacturing | Owner was not born in the U.S. | 192 | 2.9 |
| Management of companies and enterprises | Owner was not born in the U.S. | 5 | 2.8 |
For non-employer businesses we see the following trends: Immigrants make up around 16 percent of all non employer businesses in Minnesota, with a larger presence in transportation (making up almost half the firms here), accommodation and food services and healthcare and social assistance. Note the large presence in administrative support and waste management, construction, professional services and retail trade.
| Meaning of NAICS code | Meaning of Owner characteristic code | Number of owners of nonemployer firms | Percent of number of owners of nonemployer firms (%) |
| Transportation and warehousing (661) | Owner was not born in the U.S. | 32,000 | 48.8 |
| Accommodation and food services | Owner was not born in the U.S. | 1,400 | 18.4 |
| Health care and social assistance | Owner was not born in the U.S. | 5,000 | 15.8 |
| Total for all sectors | Owner was not born in the U.S. | 78,500 | 15.6 |
| Administrative and support and waste management and remediation services | Owner was not born in the U.S. | 4,200 | 13.3 |
| Construction | Owner was not born in the U.S. | 5,400 | 12.4 |
| Professional, scientific, and technical services (664) | Owner was not born in the U.S. | 8,000 | 12 |
| Retail trade | Owner was not born in the U.S. | 3,900 | 11.1 |
| Other services (except public administration) (663) | Owner was not born in the U.S. | 4,400 | 10.9 |
| Information | Owner was not born in the U.S. | 650 | 10.4 |
| Educational services | Owner was not born in the U.S. | 1,700 | 10.4 |
| Wholesale trade | Owner was not born in the U.S. | 750 | 10.2 |
| Finance and insurance (662) | Owner was not born in the U.S. | 1,300 | 9.6 |
| Manufacturing | Owner was not born in the U.S. | 750 | 8.6 |
| Utilities | Owner was not born in the U.S. | 30 | 8.1 |
| Real estate and rental and leasing | Owner was not born in the U.S. | 6,000 | 7.2 |
| Arts, entertainment, and recreation | Owner was not born in the U.S. | 2,500 | 6.8 |
| Agriculture, forestry, fishing and hunting (660) | Owner was not born in the U.S. | 200 | 2.9 |
Now let’s look at the geographic spread by county – the data on non-employer firms is of better quality and illustrates that immigrant businesses have integrated in all counties in Minnesota.
Ramsey County has more than a quarter of non-employer immigrant businesses – 12,000. In absolute numbers, Hennepin County has the largest number, 29,500. Immigrant enterprises are integral parts of the economy of Ramsey, Dakota, Anoka, Hennepin, Scott, Olmstead, Stearns and Washington counties. There are 500 or more immigrant non employer businesses in Clay, Rice, Sherburn, Blue Earth, Carver and Wright counties.
| Geographic Area Name | Meaning of Owner characteristic code | Number of owners of nonemployer firms | Percent of number of owners of nonemployer firms (%) |
| Ramsey County, Minnesota | Owner was not born in the U.S. | 12,000 | 26 |
| Dakota County, Minnesota | Owner was not born in the U.S. | 8,700 | 23 |
| Anoka County, Minnesota | Owner was not born in the U.S. | 6,900 | 23 |
| Hennepin County, Minnesota | Owner was not born in the U.S. | 29,500 | 23 |
| Scott County, Minnesota | Owner was not born in the U.S. | 2,900 | 21 |
| Olmsted County, Minnesota | Owner was not born in the U.S. | 2,400 | 19 |
| Stearns County, Minnesota | Owner was not born in the U.S. | 2,400 | 17 |
| Minnesota | Owner was not born in the U.S. | 78,500 | 16 |
| Washington County, Minnesota | Owner was not born in the U.S. | 3,700 | 15 |
| Clay County, Minnesota | Owner was not born in the U.S. | 650 | 13 |
| Koochiching County, Minnesota | Owner was not born in the U.S. | 100 | 12 |
| Nobles County, Minnesota | Owner was not born in the U.S. | 200 | 12 |
| Rice County, Minnesota | Owner was not born in the U.S. | 600 | 12 |
| Sherburne County, Minnesota | Owner was not born in the U.S. | 950 | 11 |
| Mower County, Minnesota | Owner was not born in the U.S. | 250 | 10 |
| Kandiyohi County, Minnesota | Owner was not born in the U.S. | 400 | 10 |
| Benton County, Minnesota | Owner was not born in the U.S. | 300 | 10 |
| Blue Earth County, Minnesota | Owner was not born in the U.S. | 500 | 9 |
| Carver County, Minnesota | Owner was not born in the U.S. | 950 | 9 |
| Wright County, Minnesota | Owner was not born in the U.S. | 1,000 | 8 |
| Todd County, Minnesota | Owner was not born in the U.S. | 150 | 8 |
| Nicollet County, Minnesota | Owner was not born in the U.S. | 200 | 7 |
| Steele County, Minnesota | Owner was not born in the U.S. | 200 | 7 |
| Lyon County, Minnesota | Owner was not born in the U.S. | 100 | 6 |
| Watonwan County, Minnesota | Owner was not born in the U.S. | 40 | 5 |
| Polk County, Minnesota | Owner was not born in the U.S. | 100 | 4 |
| Chisago County, Minnesota | Owner was not born in the U.S. | 200 | 4 |
| Cook County, Minnesota | Owner was not born in the U.S. | 40 | 4 |
| Cottonwood County, Minnesota | Owner was not born in the U.S. | 40 | 4 |
| Isanti County, Minnesota | Owner was not born in the U.S. | 150 | 4 |
| McLeod County, Minnesota | Owner was not born in the U.S. | 100 | 4 |
| Chippewa County, Minnesota | Owner was not born in the U.S. | 40 | 4 |
| Freeborn County, Minnesota | Owner was not born in the U.S. | 90 | 4 |
| Otter Tail County, Minnesota | Owner was not born in the U.S. | 250 | 4 |
| Roseau County, Minnesota | Owner was not born in the U.S. | 50 | 4 |
| Waseca County, Minnesota | Owner was not born in the U.S. | 50 | 3 |
| St. Louis County, Minnesota | Owner was not born in the U.S. | 450 | 3 |
| Winona County, Minnesota | Owner was not born in the U.S. | 100 | 3 |
| Dodge County, Minnesota | Owner was not born in the U.S. | 50 | 3 |
| Pennington County, Minnesota | Owner was not born in the U.S. | 30 | 3 |
| Goodhue County, Minnesota | Owner was not born in the U.S. | 100 | 3 |
| Kanabec County, Minnesota | Owner was not born in the U.S. | 40 | 3 |
| Pipestone County, Minnesota | Owner was not born in the U.S. | 30 | 3 |
| Beltrami County, Minnesota | Owner was not born in the U.S. | 90 | 3 |
| Redwood County, Minnesota | Owner was not born in the U.S. | 40 | 3 |
| Jackson County, Minnesota | Owner was not born in the U.S. | 20 | 3 |
| Le Sueur County, Minnesota | Owner was not born in the U.S. | 60 | 3 |
| Mille Lacs County, Minnesota | Owner was not born in the U.S. | 50 | 3 |
| Pine County, Minnesota | Owner was not born in the U.S. | 50 | 3 |
| Renville County, Minnesota | Owner was not born in the U.S. | 30 | 3 |
| Crow Wing County, Minnesota | Owner was not born in the U.S. | 150 | 2 |
| Faribault County, Minnesota | Owner was not born in the U.S. | 30 | 2 |
| Sibley County, Minnesota | Owner was not born in the U.S. | 30 | 2 |
| Hubbard County, Minnesota | Owner was not born in the U.S. | 40 | 2 |
| Brown County, Minnesota | Owner was not born in the U.S. | 40 | 2 |
| Carlton County, Minnesota | Owner was not born in the U.S. | 40 | 2 |
| Meeker County, Minnesota | Owner was not born in the U.S. | 40 | 2 |
| Wadena County, Minnesota | Owner was not born in the U.S. | 20 | 2 |
| Becker County, Minnesota | Owner was not born in the U.S. | 70 | 2 |
| Cass County, Minnesota | Owner was not born in the U.S. | 50 | 2 |
| Itasca County, Minnesota | Owner was not born in the U.S. | 60 | 2 |
| Martin County, Minnesota | Owner was not born in the U.S. | 30 | 2 |
| Houston County, Minnesota | Owner was not born in the U.S. | 30 | 2 |
| Morrison County, Minnesota | Owner was not born in the U.S. | 50 | 2 |
| Wabasha County, Minnesota | Owner was not born in the U.S. | 30 | 2 |
| Douglas County, Minnesota | Owner was not born in the U.S. | 60 | 1 |
| Fillmore County, Minnesota | Owner was not born in the U.S. | 30 | 1 |
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